Airbnb strikes deal with Connecticut to start charging 15% hotel occupancy tax

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WATERBURY -- Connecticut is catching up with the times, and it'll cost guests a little more to use Airbnb.

Beginning July 1, Airbnb will charge guests a 15 percent occupancy tax on top of all other charges as part of a deal struck with the state of Connecticut.

"It's a good example, the way in which tax law in many respects was built for an economy that was, not built for an economy that is, or is becoming," said Kevin Sullivan, commissioner of the CT Department of Revenue Services.

Sullivan says the deal was struck with the online marketplace and avoids any legislation or litigation.

"Let's take this case," said Sullivan. "I have a hotel and I have rooms and I'm collecting and remitting occupancy taxes for those rooms and down the street is someone who has rooms and occupancy and isn't doing the same thing. I think that's just not fair."

The fee will be collected at the time of a reservation as part of the grand total.