Airbnb collecting State Occupancy Taxes but not paying to the state

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Kimberly718
Level 10
North Stonington, CT

Airbnb collecting State Occupancy Taxes but not paying to the state

Has anyone had issues with Airbnb collecting state occupancy taxes from guests and not actually paying them to the state? I received a notice from the state despite providing Airbnb with all of my tax information that the state had not received my occupancy taxes which Airbnb claims to have been collecting. Where has that money gone? Of course no way to speak with a knowledgeable rep at Airbnb only robots and instant message exchanges which lead nowhere. I am now being charged a penalty from the state for late payments. 

Top Answer

Hi @Kimberly718 

If Airbnb states they will collect and pay the taxes in your jurisdiction (you should see that on each reservation), they pay them in one lump sum for all Hosts in that jurisdiction to the taxing authorities involved. However, some states still require the individual Airbnb owner to file a tax report that states they don't owe any taxes, as Airbnb pays them directly to the taxing authority. How often you have to file the report depends on the taxing authority. For some states/jurisdictions its monthly, others quarterly, etc.

 

 

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32 Replies 32
Amy3291
Level 2
Springfield, OR

@Kimberly718 Have you ever gotten Airbnb to show you who they are paying taxes to on your behalf? My local city government is saying that i have not paid my taxes, so I contacted airbnb and got the lump sum explanation, but can not provide a paper trail to prove my taxes are paid. This seems illegal to me, they have to show and prove that the taxes they withheld on my reservations are actually being paid out. It is a simple accounting paper trail.

Hi @Amy3291 

Thank you for your replies. 😊

 

Don’t forget to mention the Host by typing @ followed by their name so they will know you’re replying to them.

 

Warm regards

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Hi @Amy3291, 

 

Here in CT we were told to file $0 when filing occupancy taxes. Airbnb collects it in a lump sum and I imagine, reports annually; they do not report specifically with your name/property so if you ask your state tax office if they received it they will say no. Tell them you are an Airbnb, and they will understand that the tax is paid directly. This was to avoid people not paying. It's not illegal as Airbnb is actually the one collecting income so they report for themselves and essentially for you.