taxes

[Judith26]

How do you handle taxes?

[Cindy36]

Probably, although that's not what we're discussing here - this discussion is yet MORE tax on top of all that - most states, if not all, have a bed tax that you are supposed to collect from your guests and pay the state. Some places, like my county, have an additional tax, so I have to collect 11% and pay 6%to the great state of PA and another 5% to my county.  And the county wants a return monthly, regardless, even zero income and the state wants a return monthly, quarterly or semi-annually depending on tax amount collected.  I'm at quarterly by my esimates for them.  Fun times.  Fun times.  I get to work for the state and collect their taxes, but not get paid for that.  I'm used to it from my retail business, so not to much of a big deal, but every time you turn around, it's something and no one seems to know and it's YOUR responsibility to know. 

I have several businesses, so this one is a loss to offset others ones this year because of the investment in furniture, paint and flooring.  I have another unit that I was considering doign this, but just for your reasons plus the awkwardness of online rental software, plus hte cost of investing in furniture (it was receently painted and carpeted) I think I will keep it as a monthly for now.  I'll reconsider for next year and future after i get a full scope of this one, both the taxes nad the complete pic including time and overhead. 

[Toni20]

As s host I am required to pay state and local taxes in Kentucky.  State Transient Room Tax of 1%  is calculated before any other taxes., then a State sales tax of 6%  is imposed.  In addition a  local room tax is 3%. is required. This totals 10% of the room rate. So on a $100. daily rate I must charge/pay $10 making the rate $110. How do I add them to my listing?  Does Airbnb send it on to me?. 

Example:  room rate $100  Taxes $10.

Thanks for any clarification!

[David126]

I am assuming ABB do not collect where you are, mostly they do not.

So to get your net of $100 you need to charge a gross of $111.

[John-and-Heather0]

@Judith26@Ralph-and-Elizabeth0@David126 @Toni20 @Cindy36

A couple of tips:

1. Many of us have Begged AirBNB for years to add the tax button. Let's all keep begging!

2. There is a separate host board called in community center called "Taxes and Regulations" you might find helpful suggestions there.

3. One of the best suggestions I have seen from other hosts is to add it to your rules as a separate collection item (like a pet fee or late check-out fee). To charge it,

Go to the reservation, click "Report a Problem" which will send you to resolution center. Ask the guest to pay "for additional services" and then send a request for "X% local occupancy tax."  When they accept, it is paid. AirBNB doesn't deduct fees for additional services, so it should help with the complicated accounting.

[Gloria87]

I HATE THAT AIRBNB DOESN'T have a tax, pet fee or misc line!!!!!  I'm considering dropping them bc of it!  I don't raise my room rate to cover taxes.  After they book I send a "Special Offer".  I explain that Airbnb doesn't have a line item for taxes & I haven't had a complaint, but I've only been a member since Sept 2016.

Plus, I HATE that you can't view when payments are made.  Example:  I sent a "Special Offer" for taxes to a guest who recently booked. She said she paid but then received another message requesting payment again.  This is the second time this has happened.

It may be time to punt this site!  This site is more work than it's worth.  Plus I receive better quality requests from VRBO/HomeAway.

Very disappointed,

Gloria