San Mateo regulations

[Nathan10]

What are the regulations for hosts in the city of San Mateo, CA? Apparently there is a 12% transient occupancy tax, but I cannot figure out how to pay it, or if some kind of registration is necessary. I looked at the business license form, but it seems like that doesn't apply to rentals... Does anybody have a clue?

Also, how does one collect the tax from guests? Wouldn't a guest think it's awfully shady if they show up and I start demanding extra money from them???

Thanks!

[Chris46]

I'm fighting back.  

[Takahiro6]

It is illegal to use AirBnB in San Mateo at this time.

[Erica82]

Thanks, everyone, for sharing on this thread! We received the letter about a month ago as well and initially believed it may have been a scam. It sounds like, instead, that it was poorly worded (threatening) and executed. Bummer, San Mateo. I'm definitely down for reaching out to reps from the City to share the side of the host.

Side note: Interestingly, my husband received this letter but we co-own our home and *I* am the Airbnb host. Not sure how they decided to contact him instead of me.

[Tony320]

Hi Erica, just wondering if you have any update on this? Thanks.

[Tony320]

I just got the notice today. It says it is a SECOND notice, but I never got the first one. Reached out to City of San Mateo and confirmed that this is legit that their hire a third party counseling company to handle the hotel tax for short-term or vacation homes. Also reached out to HDL, and rep said that he will e-mail the information over, but I have not yet received it. When I spoke to the rep, he said since we reached out to them that they will not pursuit the backdate TOT but would like the host to start asap and moving forward.

Anybody got this setup already that can share how it actually works? Appreciate it if hosts in San Mateo can share what they are doing. Thanks.

[Baosheng0]

I am on the same boat. Does anyone know if you need to pay the tax for the days already booked by guests? How do they know how many days you rent out? Airbnb told me they don't give any information to San Mateo county. It appears to me they should only collect tax through airbnb. 

[Tony320]

At this point, I don't think the city or the third party consultant (HDL) actually knows which properties are hosting Airbnb or transients cause they had advised that if you had received the notice and aren't doing any type of the transients activities (meaning short-term rental that's 30 days and less) that you can reach out to them and tell them you are not doing so. Technically, TOT is not limited to Airbnb only since it's only one of the platforms for short-term leasing. It's just that Airbnb is one of most the popular sites out there.

This is a new thing for the city and HDL as I was advised that HDL was hired earlier of this year probably some time in January. I did received the e-mail after a follow up call to HDL. However, the information was very general. When I spoke to the rep asking a series of questions in depth before getting that e-mail, they sounded new to this and they will amnesty all prior months & years backed TOT. They want me register with their system asap and report all TOT moving forward, but not specifying the details. A lot things are left out in questions as it looks like we are in a very early stage.

If you have read the posts that Takahiro posted about complying with the City of San Mateo, not a single Airbnb host would be in compliance, but the city is allowing the existance of Airbnb as city does have a specific form for obtaining Business Tax Certificate operating under Airbnb. However, it is contradicting that city says that you do reigsred for the Tax Certificate and HDL says you don't. In a sense that you can tell it's new since the city is telling us to go to HDL, and as an advocate, HDL is telling us very basic information but not providing instruction to help us properly setup.

I did a bit of research on Airbnb's website. This is what they advised to collect TOT from guests which is not much help, so I didn't bother reaching out to Airbnb.

https://www.airbnb.com/help/article/654/what-is-occupancy-tax--do-i-need-to-collect-or-pay-it

I think it would great that someone can arrange a host meet up to get this discussion going cause with the implement of TOT. I have personally reached out to my accountant in regards to this and trying to get as much into compliance as possible, but there are many other challenges that we will face as host that continues to strive to an extra income in order to stay in the area.

[Betty-and-Janille0]

I got a letter also from the outsource in Fresno. Trying to be in compliance, I registered with the city as they instructed. Then, I got an email with an account and PIN number. I understand I have to pay 12% of nightly rate and cleaning fee only because that is my real rent income. I am planning to go online and start paying the tax ( I was told there is an amnesty, so no worries for past rent income) but time is clicking and I am afraid I will pay penalties and insterest if I delay in my payment. I guess I have no choice if I want to continue with Airbnb but it hurts paying 12% each month. After reading all the comments I wonder if somebody alreay made the payment online. 

[Tony320]

The payment is due at the last day of the month, and I'm planning to do it some time by then during the amnesty period because it would accure monthly if any penalty kicks in.

Technically, you are suppose to collect the 12% TOT from the guests that's staying. To save all the trouble, perhaps just increasing the nightly rate to cover the TOT may also be a feasible way to do it as other hosts in other regions are doing this way while Airbnb doesn't offer separate line item.

I have asked Airbnb that their suggested method is to send a request payment to the guests, but you do have to state on your listing that the TOT is collected separately. If the guest ignores the request for money for 3 days after you have sent the request, you can get Airbnb to involve to force collection when the system automatically send you the reminder.

https://www.airbnb.com/help/article/654/what-is-occupancy-tax--do-i-need-to-collect-or-pay-it

[Gi-Angelo0]

Hey Tony,

Have you figured out another way to cover the TOT other than sending a request for money?

Sincerely,

Gi'angelo

[Tony320]

Hi Gi'angelo,

I consulted HDL coulpe months ago, they advised an alterate way is to include in your nightly prices, which I see other hosts are doing after receiving the letters. However, I recently noticed that Airbnb is updating some of the host listing features that may be able to collect this charge separately, but I haven't had a chance to explore it.

This forum doesn't provide any notification when a post is generated, so I suggest you also sending a separate message to the posters if you are in need of getting some answers.

Best,

Tony

[Dennis253]

I just got a "4th LETTER OF NON COMPLIANCE," supposedly from the City of San Mateo, but with a suspicious return address in Fresno and a suspicious email address ("supprt@hdlgov.com") threatening me with $10,000 of back taxes back to 2015.  It has all the earmarks of a scam.  The website URL isn't a City of San Mateo one, the letter is signed by a "Ryan George" who clearly doesn't work at the City of San Mateo, and they want money.  A bit of web searching brought me to this thread.  HDL definitely seems shady/scammy/untrustworthy.

Since the letter was sent with a return receipt, it seemed slightly less like spam/junk/scam mail, so I drove over to City Hall for clarification.  The first clerk thought it seemed like a scam, but she asked around and a helpful woman in the Finance Department said it was legit, and I had to go through this HDL company to get help with compliance.

It seems like the compliance rate in San Mateo must be very, very low.  I looked at a half dozen listings, and none are advertising rates with the 12% tax listed separately as the city code requires.

Most of my guests are long-term, so I'm probably mostly exempt from this, but I've shut down my Airbnb until I can get this resolved.  I've sent letters to Airbnb and the City of San Mateo Finance Director, Drew Corbett.  The monthly reporting requirements, along with "applying" for exemptions for long-term guests every month seem like another unnecessary chore.

Mid-letter update:  Drew Corbett called me back.  Summary:  The City is trying to collect tax and gather info about the extent of airbnb rentals going FORWARD, not retroactively.  He listened well to my points.  He said the collection company was explicitly NOT supposed to be trying to collect taxes back to 2015, and asked me to send him a copy of the letter I received.  He also explained why Airbnb doesn't just collect and remit this.  In negotiations with the city, Airbnb was willing to collect and remit this tax, but a) only if the city would adjust zoning to explicitly allow airbnb rentals, and b) only in aggregate, without naming all the operators.   I appreciate Airbnb looking out for me, but it would be nice if they and the city could reach a compromise.  I hope they can work out a level playing field, and that there won't be individual hosts with bad luck that get severely penalized while others carry on as always.

It's probably too much to hope for an exemption to the TOT for small homeowners with just one listing, but if enough of us were to pack a city council meeting, maybe we could get this improved.

[Xiaochao0]

I received a 2nd letter after 30 days. I wonder how many letters they will send until they take actions (penalties)?

I'm fine with paying taxes as long as it's city-wide collection through Airbnb, like what Sunnyvale or SF did, it's a clear line item at book time so hosts do not need to worry about it. Now it's just too much trouble to collect on my own or just eat it in the price without charging guests (which is also a violation of the regulation...)

[Clare0]

@Xiaochao0 Are you sure that it is a violation of the regulation for you to pay the taxes yourself?

I am in San Luis Obispo County and before Airbnb started collecting taxes I incorporated them into my nightly rate and paid the county tax collector directly by check.  Does San Mateo County really have a regulation against this?  I would think they wouldn't care if the guest paid you separately or through the the nightly rate so long as they got the money. 

Either way, it still is a pain, thankfully not one I have to deal with anymore.  I do have to report my gross monthly rental income though...I guess so they can match it to what they receive from Airbnb. 

[Matt681]

do I need a permit or business license from the city of San Mateo to do Air BnB on my house? Or I can register with Air BNB and start operationg?