Airbnb has been charging wrong amount of lodging tax for over a year now and has not fixed it

[Tom286]

Long story short, early last year I noticed that both Airbnb and VRBO started changing wrong amount of lodging tax, which i my case should be just the state sales tax. Both platforms collected correct amount of tax in previous years.

After short conversation with VRBO and sending them our property tax bill showing municipality that doesn't have the actual lodging tax (in addition to 5.5% sales tax), they almost immediately changed it back to the correct amount.

But Airbnb did nothing. I sent them the same exact bill and talked to numerous CS members that relayed the problem to different CS. I finally talked to "higher up" CS that promised it will be fixed and still, nothing happened. I tried few more times, only to get the message that it will be handled by someone else. Apparently after last year's layoffs, there is no one else left.

This is not a small difference in $$. My guests are being charged strange amounts, ranging from 11 to 18%, instead of 5.5%. Which obviously can be a factor when they are shopping around and my property auto-quotes to be more expensive than it should.

I bet I am not the only one with this problem. How many more hosts either gave up on this or haven't even noticed the difference, while their guests are being literally defrauded? I am still claiming correct $$ amounts on my sales tax returns, per my state revenue dept., but it doesn't make it right and Airbnb is illegally overcharging my guests.

Where does it end?

[Janet1303]

Hello Bhumika.. my rental manager has spent many hours trying to get Customer support to fix this, but they keep telling her that the tax is correct. It isn’t. She has shown side by side comparisons of a “good” listing compared to my listing, but has no luck in getting this fixed. 

[Christina1530]

Hello. Yes. Every month they tell me it will be resolved in another month but refuse to tell me what steps have been taken. I hate the idea of a class action lawsuit but the extra 8 per cent means i am loosing bookings to better priced rentals.

[Forest8]

Hello @Bhumika ,

After a recent conversation with another host I have had some questions and concerns about the exact tax rates being charged and remitted on my listings. I attempted to call in to host support and was vehemently stone walled with a refusal to answer the exact percentages being remitted.

Can you please contact me to help clarify this issue, or direct an escalation case expert to contact me.
Thank you.

[Richard-And-Ella0]

@Bhumika We're struggling with Airbnb taking occupancy tax when our municipality does not have an occupancy tax. We are asking Airbnb what documents they are using to take the $ and where is the money going? 

[Bhumika]

Hi @Richard-And-Ella0 , I am so sorry you're facing issues with these tax-related questions. Please allow me to reach you via direct messaging for more information. 

Kind regards,

[Richard3575]

Thanks Bhumika. Our email is ****

[Rebecca2407]

I just started on Airbnb and I saw how much my first two guests were charged and was shocked. 17% each! My city lodging tax is 10%.

[Sandra6206]

I'm in GA and I'm customer that was charged $95 in taxes for two days at an Airbnb in Stone Mountain. I've been trying to get reimbursed and Airbnb said it's too late to fix because they sent the money to Texas. That they know I was charged the wrong taxes. Let's get together and file a class action case against them to correct this issue. 

[Jennifer4495]

I’m dealing with the same issue- We had to change a reservation to a one night stay due to many issues at the place and were refunded for four nights, but the tax we paid for that one night at $198. is approx $152. !  So we are stuck paying tax for five nights! Airbnb representatives informed me that they can’t refund tax charges? So where is this extra tax going and how are books balanced ? This is so unfair. Super stressful to try to remedy- and with no resolve offered. 

[Jennifer4495 · Accepted solution]

I’m grateful to share, that I was contacted by an Airbnb Escalation Case Executive, after they learned of this situation from this forum- and they apologized and refunded the over charged tax and all.

Yay, for open community to help and heal, thank you 

[Lodge102]

Navigating the turbulent waters of lodging taxes can indeed be as tricky as finding a lighthouse in a stormy sea. Hosts, captains of their own ships, bear the responsibility to ensure their vessels are seaworthy—or in this case, that their listings are tax-compliant. If Airbnb's compass seems to be pointing in the wrong direction when it comes to lodging taxes, it's crucial for hosts to steer the ship back on course by reaching out to Airbnb for corrections.

Now, onto the beacon of hope in this foggy scenario: pass-through taxes. This feature allows hosts to add taxes directly to their listing prices, ensuring guests see the full cost upfront. It's a bit like charting a clear course for guests before they embark on their journey, making the financial aspects of their stay as transparent as the waters of a calm sea.

However, as we sail through the shared experiences in this thread, it's evident that even the most seasoned sailors encounter storms. From overcharged taxes to the frustration of unresolved customer service inquiries, the voyage has been anything but smooth for some. The silver lining? Persistence and community support can lead to resolutions, as seen with @Jennifer4495 's case, where an escalation led to a refund of overcharged taxes.

For those still navigating these choppy waters, remember that the lighthouse of legal recourse, such as reporting to state authorities or considering collective legal action, stands tall as a potential guide. Yet, before setting sail toward the shores of litigation, it might be worth casting a line to Airbnb's customer support once more, armed with documentation and a clear log of your attempts to rectify the issue.

In the vast ocean of vacation rentals, knowledge is your compass. Keep abreast of local tax laws and Airbnb's policies to ensure your listing doesn't drift into troubled waters. If you're feeling adrift, consider consulting with a tax professional for more in-depth guidance on navigating these complex currents with finesse and confidence.

Remember, every host's journey is unique, but you don't have to sail alone. The community is here to share maps, tales, and the occasional sea shanty to keep your spirits high and your listing compliant.

Fair winds and following seas, Lodge Compliance

[Janet1405]

Hi, I've been fighting with this for over 2 years and I'm not sure how to get this resolved. I only rent for 31 days in the city of Franklin TN and all of my guests are getting charged large accommodation taxes that should not be charged. I notified ABNB and they opened a case, then told me they would be corresponding via email and would close my inbox case. I received one email from Nordic who asked me to respond that I did receive the email and then crickets. I'm so frustrated. Advise? VRBO is doing the same thing and has also continued to ignore my requests. Honestly I think if I could just create a website for bookings I'd be better off than all of this mess. 

[Janet1405]

[Joan2709]

Hi @Janet1405 

Got curious and researched taxes for TN. State of TN requires any rentals of 90 days or less pay sales and use tax. Since you are renting for 31days, you would still be subject to sales and use tax as it is less than 90days. You aren't subject to Occupancy taxes unless you rent for 21 days or less. To avoid the sales tax, you would have to set your minimum stay at 90 days or more (89+nights):

https://revenue.support.tn.gov/hc/en-us/articles/360058639811-SUT-47-Short-Term-Rentals-Are-Subject-...

Airbnb is collecting Sales & Use tax for State of TN & Wiliamson County on your listing for any reservations less than 90days (or 89 nights)

Taxes in Tennessee

https://www.airbnb.com/help/article/2330

The State Sales & Use Tax is 7%

The County Sales & Use Tax is 2.75%

The total sales tax due on any reservation less than 90 days (89 nights) is 9.75%

Here is a reservation example for your listing for 31 days (your min stay). The sales tax due would be a total of 9.75%.

$3,405.00 + $480.71 - $119.18 = $3,766.53

$3,766.53 x 9.75% = $367.236 (round up to $367.24)

Airbnb is calculating the taxes correctly in this case for your listing.