But in its 18-page submission, Airbnb said it is a "right" for people to share their property with a paying guest.
"The state would benefit from following the lead of other jurisdictions around the world, who like Tasmania also have strong tourism industries, and have legislated to permit home sharing of primary places of residence without limitation," the submission reads.
For non-residential dwellings such as holiday homes, Airbnb suggested a limit of 180 nights per year.
"The various governments who have regulated short term letting around the world, have recognised the economic benefits that Airbnb brings to the communities it becomes part of," the document continued.
The submission also opposed plans to prohibit properties larger than 160 square metres from listing with Airbnb.
Airbnb said it has about 2000 listings in Tasmania and in the 12 months up to May more than 106,000 guests have used the service in the island state.
- AAP