Airbnb failing to remit accommodation tax to Jersey City, leaving JC hosts holding the bag

Willis8
Level 4
Jersey City, NJ

Airbnb failing to remit accommodation tax to Jersey City, leaving JC hosts holding the bag

During the process of renewing my Jersey City short-term rental permit, Jersey City demanded that I pay the 6% occupancy tax on my Airbnb bookings for the past year. This is about $3,600 in my case.

 

Airbnb collects the accommodation tax from my guests and is supposed to be remitting it to the city. (See the screen shot from my listing.) However, Jersey City states that Airbnb has not been paying it, and they even sent me several monthly tax filings from Airbnb showing Airbnb  claiming to owe $0 in taxes. In other words, for at least these time periods, Airbnb was collecting the accommodation tax from my guests and then just keeping it.

 

Jersey City did show one filing from Airbnb (also attached) in which Airbnb made a tax payment of about $76,000. However, Airbnb did not provide any documentation about which units, reservations, or time period that that amount covered, so Jersey City says they cannot know whether the taxes for my unit have been paid or not.

 

I have sent messages to Airbnb about this. Airbnb initially sent me a message saying that I could see the amounts paid to JC in the my earnings report. But this is not true, I can only see the total amount collected from guests for all taxes; there is no indication how much was paid to JC or when it was paid. Airbnb asked for additional documentation showing the JC tax was not paid. I sent them the copy of their own filing showing $0 paid. Airbnb then just replied with the exact same pat response about checking the earnings report.

 

Obviously this is a dispute between Jersey City and Airbnb. Airbnb is supposed to be collecting and remitting the tax. Jersey City wants the taxes paid on time and wants details about which units are covered so they can match with their STRP records. But Airbnb can't be bothered to either remit the taxes or provide the details that JC needs, so JC is going after the hosts for the money because that's easier than chasing Airbnb.

 

It's unconscionable for Airbnb to take money from my guests and then fail to remit it to Jersey City, leaving me with a $3,600 bill that I have to pay on my own.

 

Shame on you, Airbnb.

 

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**[Private conversation removed in line with the Community Center Guidelines]

64 Replies 64

Also looks like there is a new feature in Pro Tools for host to collect additional taxes when guest book. 

What you can do is find out what taxes are collected by city, county and state. Add them together. Then go to download CVV to see how much Airbnb is collecting from guest to see if it matches the total of all accommodation taxes. If the two don't add up try and figure out who isn't getting paid and collect extra for that and remit on your own. 

I haven't tried this yet. But at least now their appears to be a way host can collect taxes due and try to figure out where to pay where Airbnb isn't, by cotacting all the various local and state agencies, if they even know.  

Once again this is just my understanding  of it and would also appreciate any clarity or insights. 
Screen Shot 2021-12-16 at 9.49.45 AM.png

The "Review the tax amounts collected by Airbnb" isn't working for me, and just switches ove to a help page. I think this is also new and wasn't there a few weeks ago. Anyone else having any luck? 

It would be nice if Airbnb actually provided info on the taxes they collect and pay.  

I'm seeing the same thing you are. Airbnb shows the *total* occupancy tax collected but not specifically what is being collected forJersey City, and it is also not showing when the taxes were remitted to JC. You can see from the tax form that I attached above that for several months Airbnb was remitting *zero* in taxes even though there were obviously bookings during that period. And the one month Airbnb did remit a tax payment, they didn't break down what properties it was for. (The form has spaces for account number, block number, etc. but they are all blank.) Because of this, JC isn't buying Airbnb's "trust us, we're paying everything we owe" story and is making the hosts account for the taxes themselves and pay up unless we can prove that Airbnb already paid them.

@John5097 custom tax collection is not new; I've been using it for a couple of years. And same as you, I can currently see which taxes Airbnb collects, but not their amounts.

@Lisa723 Have you been doing it through the resolution center or dies it charge guest when they book? I read the new feature would charge at time of booking. Maybe just a new button they added. As I said I don't recall it being there a two weeks ago and it says "New" 

@John5097 no resolution center involvement. It charges the guest when they book, just like all other charges, then pays the amount to me with the usual payment. The button and the feature are not new, at least to me. As I said I've been using it for a couple of years.

@Lisa723 Good to know. Wondering if ABB also charges a fee because the total occupancy tax they are collecting isn't even a whole number. 

Without knowing who Airbnb is paying, its nearly impossible for host to try and extrapolate which agency is being paid or the amount, or if they are paying them at all. 

I read NYC won their lawsuit requiring ABB to provide host info and not just lumping it all together. 

 

Mike-And-Jane0
Level 10
England, United Kingdom

@Willis8 Are you able to access the agreement between JC and Airbnb? If you can get it under some sort of Freedom of information act you may find out what details Airbnb agreed with JC.

Willis8
Level 4
Jersey City, NJ

Just got this message from Airbnb:

 

"As informed earlier Willis, unfortunately we wont be able to refund the already remitted to the country, also i have sent the proof that we can."

"After a full review of the available information, we’ve determined, based on our Terms of Service, that we’re unable to support your account moving forward and it will be removed from the Airbnb platform."

 

@Willis8  Did you threaten to sue them or anything similar?  Do you think they banned you simply for trying to find out whether they were paying the JC occupancy tax?  Airbnb usually never tells anyone why they have been delisted so I'm guessing same for you.  Wow.  

 

 

No, I didn't threaten to sue them. I just told them that I wanted them to reimburse me for the taxes that JC made me pay. I'm not actually suspended at the moment, apparently there's some internal team that's reviewing it.

@Willis8  I am having the same issue. I ended up paying the taxes to renew my permit last year, as the city official threatened me and told me to put my listing down immediately. I reached out to a lawyer who reviewed the numbers and agreed that Airbnb is collecting for us and either is not paying or the city thinks they are not paying.  Either way, we are left with the hefty bill and someone is profiting from it.  

Seems there is enough of us with the same issue to pursue legal action.  Has anyone else asked the city why they are not helping?

Lycette0
Level 1
Jersey City, NJ

@Willis8 I am having the same issue with the city saying we have to pay occupancy taxes.  Is there a way we can connect outside this forum?

I'd love to join this discussion as I am facing the same issue. 

Xiao Kuang
Philip2699
Level 2
Jersey City, NJ

I am in the same position. I will say that the girls in the JC City office have been very good as far as explaining what is happening goes. Apparently the city is fighting this with Airbnb - however I've been told if they do not reach a resolution by 15 April, I will have to pay the tax amount ($1,250) or they will not renew my license and I will have to remove my listing. That can't happen - so, looks as though I may have to  cough up the money. I can see in the amount of tax that Airbnb collected last year that they haven't collected the 6% (the amount collected is about 11%) but from 1 January they are now collecting about 17% so clearly they realized their error. But, in my opinion, it's their error and they should be funding the taxes not collected. It says very clearly on their website that they collect them and as hosts we (blindly) trust what they say. I feel we are at the mercy of a big corporation who isn't willing to help us out.