Adding a line for local taxes on bill

[Bob-and-Ivonne0]

Need to know the best way to include Hawaii GET and TAT taxes in pricing for bookings. This needs to be collected up front and paid, in turn, by me to the State of Hawaii. Also, will this preclude instant bookings if I use a "Special Offer"?

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Hi Bob & Ivonne,

Greetings of the day & I hope this message finds you in the best of your health and high spirits. My name is Neeraj and I am a part of Airbnb's Customer Experience Team. 
First of all, I am glad that you took out time and you reported this to us. I do see that you are associated with Airbnb from last 6 years. I would really like to thank you for investing your trust in us. It really means a lot. 

I have checked the details for you and I have the solution and the alternative as well.

1) As far as the Hawaii GET and TAT taxes are concerned, there is no way to include in the pricings for bookings but what you can do is, you can clearly mention that all the guests need to pay these taxes during the check in time. You can mention this under the ''Description'' section of your listing. This way all your guests will be able to see that they also need to pay these taxes and then will proceed with the booking accordingly. I have also shared the screenshot of the ''Description'' where you can mention the same.

2) Secondly, in order to include this amount, you can include these taxes when you send a ''Special Offer'' to your guests. Otherwise, you can simply collect it once your guest checks in as you would neways be mentioning in the ''Description'' section of your listing.

I hope this sheds light to your concern Bob & Ivonne.
Your beautiful listing & positive reviews do outshine your personality & express all positive about how responsible you are & the efforts you take to ensure everything is just perfect for your guests. We really want to take a moment & say thank you so much for what you do, Bob & Ivonne.

Should you face any issue or need additional assistance, please feel free to get back to me directly by replying to this message and I will be glad to assist you. We truly value your presence within our Airbnb community and wish you have a wonderful journey with us.🙂

Warmest Regards,

In regards to your response:

1) These taxes need to be paid when the client pays their rental payment as there is no way to ensure collection of the tax once the guest has arrived at the residence. I have therefore included the amount of the GE and TAT tax in the rental amount, as is customary here in Hawaii. Unfortunately this puts me at a competitive disadvantage with those who do not collect this tax here (not collecting and remitting this tax is illegal here, you understand, but that will not stop others from doing this), as their prices will be lower. Airbnb needs to find a better way of handling this, and one way would be to include a tax line on the amounts due, as is customary with your competitors.

2) The Special Offer might seem like a reasonable solution, but this would preclude “instant bookings” and also put us at a competitive disadvantage by not allowing them. Additionally, the “Special Offer” concept is generally understood to be a “better” or “discounted” offer to the client, not an increase in the stated price!

It would seem to me that I am left with no alternative to adding these taxes to the rental price so the money will be forthcoming from the guest for payment to the State of Hawaii. Why cannot Airbnb add a line to the prices that will allow us to include local taxes? This is the simplest solution and best for both host and guest!

[Linda108]

Aloha, @Bob-and-Ivonne0.  I spent a week in July enjoying Pahoa!  Fell in love with coqui frogs...:D  Anyway, the hosts of the home where I stayed elected to include the taxes in the nightly rate.  As a host, I also include occupancy tax in my nightly rate.  Much easier for me.  I include in my description that the nightly rate includes the city tax.  I think guests appreciate that there are as few extra, add-on fees as possible.  

As to the impact on marketing competition advantage of those hosts who choose to skirt business regulations, not much you can do about that.  In my city, they have engaged a company to use data mining techniques for capturing those hosts that are not paying taxes or registering their short term rentals.  Soon it will cost these hosts a lot of money in fines.

[Bob-and-Ivonne0]

Hi Linda, and thank you for the vote of confidence. This is what I have done on Airbnb, but I still would feel better if Airbnb put their own solution in place which would include allowing a price line for the local taxes (and any other fees) to set things crystal clear in the pricing, even if they do base their fee on the full price with the added taxes. Until they do, I will follow your advice and keep the taxes in the price while advising the guest that all taxes and fees have been paid through Airbnb.

We love Pahoa, as well, and actually thrive on the excitement of the nearby lava flows. Our home is relatively safe, being up in the local highlands, albeit not too far from the Eastern Rift Zone and Lava Tree Park, however. And, while we don't have a rental here on the East side of the Big Island, we grow organic veggies and raise our two Lab pups on our own little piece of land. Our rentals are in Kailua Kona, on the sunny West side of the Big Island, where most of the tourists currently choose to stay. 

Thanks again for your advice. We appreciate the help.

[Victoria403]

Dear Bob and Ivone,

I am in the same situation with the tax thing. I have been praying to all the universe that Airbnb add this item in the pricing so everything is very clear and easy to everyone. Meanwhile I added in the description and asking  the gusts to pay  it when they check in. In these days the first guest is arriving with this new system . Lets see how it works, if not appart from losing money I will have to add it to the rate the same as you had.

Sincerely Victoria and Arturo from Maui

[Raymond86]

As a newcommer to Airbnb hosting, I agree that Airbnb should add a spot for taxes in the listing price.  This is especially important when chosing competitive pricing.   My local, state and township taxes come to 10% of price.  Adding 10% to my base price and maximum doesn't really take care of the tax issue in dynamic pricing between the max and min.  I could set a fixed price which includes the taxes but lose the power  of dynamic pricing.  Or I could add the taxes in special offers, unsavory as stated by Linda. Would really appreciate Airbnb adding a line for taxes as a percentage of room price so it can be easily applied to the dynamic price, and as Bob and Ivonne stated make the pricing factors crystal clear. it perhaps could be added in the other fees section as a  percent of price vice fixed fee.

[Raymond86]

Collecting tax payment at checkin is not a good option for me either.  I live 500 miles away from the property.  My local hosts handle keys cleaning and questions but not money.

[Keith-And-Kelly0]

We are fairly new hosts for a Hawaii paradise home on the Big Island and truly love it!  Airbnb is collecting for all other states and many other countries - is Airbnb in negotiations with the state of Hawaii to resolve this need?  I agree, having taxes listed separately and collecting upon arrival is not well received by guests even though it is clearly stated.  I am now trying the route of increasing the nightly rate to include the taxes but as you all have indicated that causes other concerns as we cannot collect the money at checkin. 

We sure hope this gets resolved soon and are a bit confused why other platforms are able to collect Hawaii taxes. 

[Alethea0]

Today's West Hawaii MY TURN by Liz Lees comments on Gov. David Ige veto of bill allowing/ requiring online bookin site to remit taxes. Urge your legislators to pass a "clean" bill for simplified tax collection.  The more tax dollars we generate, the more Hawai County and is residents benefits. I totally agree.

[Dina109]

Good day, I am new to Airbnb, I would like to see a section in the listing where you can add the tax percentage.  I also agree collecting taxes at check in isn't a good idea.

[Callie13]

I also would really like to see Airbnb add the tax option during booking. I have to remit a total of 12% in Georgia for county and state taxes. The way I report my earnings to the state is I have to show how much I have been paid out from Airbnb each month. If I included taxes in my base price then I would have to lie about how much I am paid out from Airbnb so as not to pay taxes on the taxes (if this makes sense). I have included in my listing description that I must collect taxes upon check in and I feel that this puts me at a disadvantage because so few other hosts seem to be doing this. I am not sure if they are simply paying taxes out of pocket or if they are just not paying them. Either way, I am trying to do what I am legally required to do and I feel like this is having a negative impact on my bookings and my guest experience upon arrival. No one wants to be immediately asked to pay more money upon the beginning of their vacation.

[Gabby26]

Aloha everyone!  Lets be very clear:

IF/SInce

[Gabby26]

Aloha Everyone - 

IF/Since AirBnB is not (yet) allowing GE and TAT taxes to be collected at the time of booking- THAT TECHNICALLY PUTS EVERY AIRBNB HOST IN HAWAII out of compliance with the tax laws, and that has a lot of (future) ramifications.  It is strongly suggested that ASAP AirBnB implement in the pricing the ability to add ___% for General Excise tax (which is currently 4.166% for Maui) and then to COMPOUND that with the rental amount, the sum of the 2 then being taxed at ___%  (which is currently 10.25% for Maui).

Failure for hosts to comply with these tax rules puts Hosts at risk AND since AirBnB is not yet allowing this relatively simple formula to be included in the pricing/invoicing... AirBnB is by default forcing ALL HAWAIIAN HOSTS to be out of compliance. A lot of exposure there for something that should take a programmer a few hours to write the formuls, and include in the interface. If AirBnB needs help with this formula, please contact me, and I can write the algorithm in a few minutes for you, although it is already outlined as clearly stated above.  AirBnB - please pass this up the corporate ladder ASAP ASAP, as you and your hosts are at risk.  Mahalo - Thank you

[Gabby26]

Accidently posted before complete - please excuse if double posted:

Aloha Everyone - 

IF/Since AirBnB is not (yet) allowing GE and TAT taxes to be collected at the time of booking- THAT TECHNICALLY PUTS EVERY AIRBNB HOST IN HAWAII out of compliance with the tax laws, and that has a lot of (future) ramifications.  It is strongly suggested that ASAP AirBnB implement in the pricing the ability to add ___% for General Excise tax (which is currently 4.166% for Maui) and then to COMPOUND that with the rental amount, the sum of the 2 then being taxed at ___%  (which is currently 10.25% for Maui).

Failure for hosts to comply with these tax rules puts Hosts at risk AND since AirBnB is not yet allowing this relatively simple formula to be included in the pricing/invoicing... AirBnB is by default forcing ALL HAWAIIAN HOSTS to be out of compliance. A lot of exposure there for something that should take a programmer a few hours to write the formuls, and include in the interface. If AirBnB needs help with this formula, please contact me, and I can write the algorithm in a few minutes for you, although it is already outlined as clearly stated above.  AirBnB - please pass this up the corporate ladder ASAP ASAP, as you and your hosts are at risk.  Mahalo - Thank you

[Gabby26]

Hello and Aloha AirbnB folks, and other hosts-

As a host who happens to have 3 computer engineering degrees, I take GREAT EXCEPTION to:

""there is no way to include in the pricings for bookings"".

Ridiculous - I could write the code in a matter of hours to do this, and the integration into your platform, working from the inside as your developers are, that depends on the APIs of your engine - but it is possible, and not difficult for a single good programmer.

Secondly, silly and unnecessary to bother ourselves and our guests with paying an additional amount upon arrival AND it is not in compliance with (in our case) Hawwaiian law.

Compliance is clearly showing a BREAKOUT of the General Excise (GE) tax AND the TAT tax on the invoice, not collecting it after the fact.

Please pay attention to this important compliance matter - our industry - the short term rental business does not need any more problems, or failure to comply. AirBnB not supporting this, and allowing us Hosts to easily collect, then pay our proper taxes, is absolutely necessary.

Please contact me if your programming team needs the little assistance in writing a functional and technical spec, including the algorithm, for making this happen.

And please, do not take the position "there is no way to include in the  (tax) pricings for bookings."

That may be true in this moment, but it cannot remain so.

Sincerely,  Gabreal Franklin

[Susan-and-Thomas0]

I am in complete agreement on adding a section, where hosts can put in a % (whatever % the local taxes are) to be added at time of booking.  It seems like such a simple fix to me, I don't understand why it can't be implemented.  I currently pay those taxes out of the list price, but it does put me at a disadvantage to other properties listed the same, but collect the tax separately.  Most guests, myself included when traveling, don't like the "taxes to be collected at check-in".  It leaves things to vague, imo.  Please help us AirBNB!!!