Mississippi to tax short-term lodging outside hotels, motels

JACKSON, Miss. – Mississippi will start taxing short-term lodging rentals booked online through companies such as Airbnb.

The Northeast Mississippi Daily Journal reports that the new regulation takes effect Sept. 28.

The state already collects 7 per cent sales tax on hotel and motel rooms. Some cities also impose a 1 or 2 per cent local tourism tax.

Kathy Waterbury, associate commissioner at the Department of Revenue, says Mississippi will start collecting state and local taxes at the same rate on short-term rentals in apartments, whole homes or rooms within homes.

Waterbury says the new regulation reflects changes in how people book overnight stays.