Occupancy taxes

[Jade229]

Airbnb will need to do a better job focusing on compliance with state and local laws before this issue unravels.

They certainly aren't complying with Virginia laws.

Airbnb Sued in Georgia for Failing to Collect Occupancy Taxes

Feb. 3, 2020, 11:40 AM

COURT: N.D. Ga.

TRACK DOCKET: No. 4:20-cv-00022

JUDGE: Thomas W. Thrash

COMPANY INFO: Airbnb Inc

Airbnb Inc. failed to collect taxes and comply with occupancy tax rules, several Georgia counties and cities said.

Led by Hart County and the cities of Rome, Cartersville, and Tybee Island, the group’s proposed statewide class action seeks more than $5 million in damages, including for allegedly deceptive business practices, according to the complaint.

Airbnb refused multiple requests to collect and remit excise taxes, according to the complaint filed in the U.S. District Court for the Northern District of Georgia. The group asked the court to bar Airbnb from future occupancy tax violations and to require that the company collect and remit the taxes due.

The company has “the absolute and sole ability to collect and remit Occupancy Taxes from or on behalf of Guests or Hosts,” the complaint said.

The group also argued that Airbnb engaged in “deceptive, unlawful, unfair, and fraudulent business acts and practices by misrepresenting to consumers” that it was collecting occupancy taxes, when in fact it didn’t. The plaintiffs, individually and as a class, seek restitution for the allegedly deceptive practice.

[Dale781]

I am new to hosting in GA.  The terminology used by Airbnb related to taxes is misleading to say the least.  They refer to both the state 4%, and the County/Local 3% [for Macon-Bibb] as Occupancy Taxes, when they are really just sales taxes.  It appears many hosts are overlooking that they should be collecting the 8% occupancy tax for Macon-Bibb.  This is the true Occupancy Tax, which is charged on short term rentals.  The way to correct this is to set up a new tax, call it Transient Occupancy Tax.  You will need to set the number of days before it is exempt.  I used 28 days or longer.  When I lived in CA, and was the Tax Administator, I saw how cities across the valley were using a different threshold for this exemption.  It ranged from 28-31 days.  Each city has their own ordinance, but in my opinion the only fair one is 28.  If you use 30, or 31 days, if someone books a month's stay, when it is Feb, they will be charge the tax, if it were Jan they would not be charged.    This was especially an issue where snow birds would rent places at a monthly rate.  Note:  When applicable, this tax will be included on the line Occupany and Taxes.  However, Airbnb does not remit this 8% tax to the City, they remit to you, and you must file monthly to the City.  File a zero report if you have nothing to report.  The monthly report is Hotel/Motel Occupancy Excise Tax Return.  You also need to register with them for a "County of Bibb Certificate Authorization", which authorizes you to collect this tax for them.  Folks not making sure that their listing is complying with this tax can be held liable down the road.  And it is a lot of lost revenue to the City if not handled properly.