The company behind the vacation rental website announced Thursday that it's reached an agreement with South Dakota to start collecting and remitting state and local taxes.
The taxes — 4.5 percent to the state and between 1 and 2 percent to local governments — will be billed when a room or home is booked.
The move is a win for officials in South Dakota, which doesn't have an income tax and depends on sales taxes to fund government. Sales tax revenue has been in decline in part from a shift to online spending where tax collection is less consistent.
Amazon reached an agreement to collect and remit taxes to the state in January.
Meanwhile, South Dakota is locked in a court battle over internet sales tax collections with Overstock.com and other online businesses. The state hopes the lawsuit will force the U.S. Supreme Court to overturn a 1992 ruling that online retailers have used to duck taxes outside their home states.
