Airbnb Targeted by States Suspecting Tax-Collection Shortfalls

Suspecting that Airbnb Inc. and other rental marketplaces may be shorting states and local governments billions of dollars in taxes, lawmakers in at least a half-dozen states are pushing legislation to take control of the process.

While the proposals vary, the states aim to close what they see as a yawning tax gap caused by a reliance on hundreds of industry-driven voluntary compliance agreements (VCAs) with local governments. Critics contend the agreements dictate terms for administering lodging and tourism taxes and saddle revenue agencies with flimsy data-sharing rules that prevent audits.

While Airbnb says it has collected and remitted $2 ...