Sales and Occupancy Taxes in Florida

[Kay2]

I am a new host on AirBNB.  I know there have been some discussions on taxes and I have read through them.  We have a rental in the state of Florida and AirBNB are collecting the Sales taxes for our area (6% state and 1% County Surcharge for a total of 7%)  We also have to pay occupancy tax of 6% to Osceola County.  AirBNB are, as far as I can tell, not collecting this tax for our area and therefore we have to do it (this is not a problem, I collect and remit taxes to both state and county for all our rentals, but will have to modify my system to account for AirBNB collecting part of the taxes)  

From what I have read, we have to either incorporate this tax into our rate (make our rate seem higher than it is) or add it in as a special offer. Both options the occupancy tax will be subject to the Sales Tax collected by AirBNB (and shouldn't be)

Has anyone found a better way to handle this or contacted AirBNB on  this topic?

[Karen1]

Rick and Terri,

As of November 2018, the St Johns tax collector will not agree to let Airbnb collect the county's 4% tourist tax. So, you need to contact the tax collector's office to have an account established and obtain a local buiness tax receipt ($15/yr). They will send you the forms to remit your monthly tax. 

- Karen

[Marie1285]

Hi Karen,  I rented out my home in St Johns (Sawgrass) 2 months. The agent charged the tenants 10.5% tax and also me 4% tax. However, she paid on my behalf and I feel that I should pay myself the 4%?

Is this right procedure for agents to charge 10.5% to tenants renting 2 months and they pay directly plus charge me 4% on top of that and are taking that from rental.

I am looking fos someone to help as I live in Europe perhaps to manage my property in lieu of agents?

Your thoughts on this please?

Thank you.

[Karen1]

I am not sure I understand. Are you renting your unit exclusively through Airbnb? Or, are you using other platforms as well? All short-term rental stays in St Johns county are taxed 10.5%, but how it's paid by the host depends on what platform you use.

If your guest comes to you via Airbnb, then you and your manager should NOT be charging the guest the Florida State Sales Tax and Surtax of 6.5%. Airbnb does that for all Florida hosts. That would be double taxation.

However, Airbnb does not collect the St Johns county Transient Tourist Tax (aka Bed tax). You must collect this from the guest, or pay it from your earnings. This tax is to be paid to the county on a monthly basis. Currenty, it is 4% but the commissioners are talking about raising it.

Is your manager really collecting this tax from the guest or is it absorb in your nightly rate? If the guest is not paying 4% on top of your nightly rate and cleaning fee, then your manager needs to collect it from you.

Do you have the county's business license? If yes, the county's tax collectors office will provide your manager with the forms you need to submit the tax.  Ask your manager if s/he is using those forms.

If you do not have a business license, have your manager get one soon. You will need to pay any back taxes, but they will waive late fees.

Hope this helps. - Karen

[Karen1]

@Tanya6, this question was asked over a year ago. Did you get an answer? If not, see my tax tutorial in this thread posted on August 26, 2017.

[Marcelle10]

Hi-

I live in Sarasota County, Fl and have to charge for the county level tourist tax.  From what I have read, I can add this tax into my "Special Offer."  How do I do this for every booking?  Plus I feel it makes me look bad because how is this an "offer" by charging extra??!!

Can anyone from this group help me to understand how to add this tax either through Special Offer or another way that doesn't seem so offensive?

Thanks is advance-

Marcelle

[Marcelle10]

Just FYI-I called Airbnb.  They as of yet do not have a real acceptable solution.  They suggested several ways such as increasing cleaning fee or adding a fee for more than 1 person.  Or adding a "Special Offer" increase which doesn't sound very special and is insulting to the guest.   None of these makes any sense because that additional money will also get taxed and the Airbnb service fee % is increased.  The Airbnb rep also stated that after a person arrives, you can go to the "Resolution Center" and ask them to add this additional tax.  This way it is not subject to increasing the other taxes and service fee.  The only thing is you have to do this EVERY TIME after a guest arrives.  Also NOT an easy solution.

So, I am adding a note in the "Space" part of my description telling people that there will be an additional 5% charged for this county tourist tax fee that is not calculated which I will collect when they arrive.  

The Airbnb is also sending me an email to make a comment.  I am going to suggest that they add an additional column or space to enter any additional taxes that are not being charged.  You can set the rate of what is needed and Airbnb can calculate without increasing the other occupancy taxes or service fee.  I encourage others to speak out until Airbnb fixes this glitch.

[Natalie75]

Hi Marcella

I am also in Sarasota County and trying to work out the best way to collect the local tourist tax. Have you tried any of the ways you spoke about? 

Thanks for any info!

[Karen1]

@Natalie75, @Marcelle10,

I have always wanted an extra line item in the guest's bill for us hosts to add the local tourist tax. I even made that suggestion a couple of years ago, but it fell on deaf ears. For now, I just "absorb" the tax, meaning I pay it from the net amount that I receive from Airbnb. I don't like asking people for the extra "cash" after they get here, but my method means that the tax is being taxed and it's also in the total used to calculate the Airbnb service fee. I hate double taxation, but for now, this is less distrubtive for my guests.

Anyone who wants to make a suggestion to Airbnb can now do so using the new Host Voice section of this community forum. The more "likes" a suggestion gets, the more likely it is to be read by the Airbnb production team.  Here is how it works: https://community.airbnb.com/t5/Welcome-Announcements/Host-Voice-Guidelines-and-Tips/m-p/133485#U133....

@Marcelle10, if you make the suggestion here, I will gladly "Like" it and encougage others to do so as well.

[Rachel11]

Hi, 

We are also in Sarasota. Have you heard about losing Homestead exemption? Do you know of a forum just for Sarasota hosts. 

[Barry-and-Lera0]

Sarasota County has signed a deal with Airbnb to collect tourist development taxes starting May 1.

We haven't heard anything direct from Airbnb directly on this matter yet. I know Airbnb currently collects the 7% Florida state sales tax under the title of "Occupancy Tax". We are guessing that all bookings made afterMay 1 will have another itemized tax for guests to pay and Airbnb will submit on behalf of the hosts similar to what it does with state sales tax.

http://www.heraldtribune.com/news/20170403/sarasota-county-and-airbnb-reach-agreement-on-taxes

[Rachel11]

Hi, 

We are also in Sarasota. Have you heard about losing Homestead exemption? Do you know of a forum just for Sarasota hosts.

[Brad62]

Airbnb is starting to automatically collect the occupanct tax starting May 1st.  you can see that in the bill which they charge the customer.  

Regarding the FL state sales tax, the messages below say that they collect this also, but if you look at a bill to the customer they only have to lines which they add to the bill , i) the AirBNB service charge, and ii) the state occupancy tax.  Does this mean that they collect the sales tax as part of the AirBNB service charge?

Thanks everyone, you are all great!

Brad

[Barry-and-Lera0]

You will not see anything until May 1 as this new collection will be in play for any reservations made AFTER May 1. You will not see this new tax hold on people that have already booked with you even if they  are staying after May 1. Bascially...if you have someone that booked in March for a late May stay it will not be itemized and you will still need to pay the "occupancy tax" on your own for that stay. 

Airbnb collects an "occupancy tax" right now which is actually Florida state tax. For the bookings that are made after May 1 I do not know if they will have two (2) seperate collections under the term "occupancy tax" or they will finally label them what they are. "State tax" & "Occupancy / tourism tax".

[Boba0]

I have the same problem with AIRBNB.  My property is also in Florida and tax is 10%.  I got tax number and I am informed that it is my obligation, not AIRBNB to remit the tax.  If anything goes wrong I will be charged. In addition, AIRBNB is taking tax partialy, so I have to explain to my guests whole procedure.  Id doesn't help, it only makes a mess.  I would rather have AIRBNB not takes tax on their own, but as per my listing add 10% to my payout automatically.  That's how VRBO works and it is much better.  Now I do not know how to handle it.  Total confusion.

[Karen1]

@Boba0, You have been misinformed. Airbnb has an agreement with the State to pay the Transient Tax for all Florida reservations in lump sum under one filing per jurisdiction, and you are not to pay it again. Unfortunately, not all local tax offices are aware of this agreement.

Depending on the county you are in, you may have to collect and pay your county's Tourist Development Tax.  Please see the tutorial that I posted under this thread just a few minutes ago.