Transient Occupancy Tax

[Steven1570]

Hello,

This is my first post on this site.  I have been hosting for a little over a year.  It has been a definite learning process.  We have a unit that is subject to a 10% Transient Accommodation Tax, which I had initially been under a false understanding with AirBnB that they were submitting this to our local government..  I was mistaken..yikes!!  So now, after calculating all and submitting, with many penalties, the 10% TOT we are up to speed.  My question is do you think it's best to put the 10% as a charge that AirBnB collects or have it incorporated into the nightly rate and absorb the fee?

Thank you!

Steve

[Quincy]

Hi @Steven1570. Welcome to the Community Center! How do you currently have your TOT tax setup?

I found this Resource Center article about Occupancy tax collection and remittance by Airbnb in the State of California 👈. You can have a look at the link and search for your county.

I've also tagged a few hosts who have discussed TOT tax in the past who might be able to provide more insight:

@Karen4122 @Mike-And-Jane0 @Devon172 @Sharon1966 @Melanie318 @Joan2709 @Phil3896

Lastly, you might find this guide created by @Angela1056 to be helpful:

👉 How to include a tourist tax in the rental price

I hope this helps!

[Steven1570]

Thank you Quincy!

[Quincy]

Hi @Steven1570. A few members have shared their insights with you. Have you decided how to set up your TOT tax yet?

[Karen4122]

@Steven1570 

I initially put it in the nightly rate, but I changed it to put it in the tax part. I did that so the nightly rate would be less and so it was showing that I am not charging it, the county charges it, just like a hotel, where you see a tax. I think people are used to hotel tax and it is expected 

I’ve heard that in some counties, it is automatically taken and Airbnb takes care of it with the county 

My Airbnb is in a small county, so Airbnb doesn’t do it for me. Maybe that’s the same for you.

I also initially thought I could set it up so Airbnb handled it, but I don’t have that feature available in the county of my Airbnb because I have checked and there’s no option for that on my Airbnb account. 

Hope this helps 

[Steven1570]

@Karen4122 

Thank you Karen!!

[Mike-And-Jane0]

@Steven1570 If you can I would maintain control and not trust Airbnb to collect this tax. Often you will have no choice though.

[Steven1570]

@Mike-And-Jane0 

Thank you Mike and Jane!