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?

[Emiel1]

@Tom286 

Maybe try Twitter  (account: AirbnbHelp)

Did you also check if the Airbnb info on the subject is correct ?

Occupancy tax collection and remittance by Airbnb in Wisconsin

[Tom286]

Yes, in our municipality (township) only the State and County Sales tax are due, which are 5.5%. There is no separate lodging tax required.

Airbnb mistakenly (despite being proven wrong) claims that  our property is part of the city, which requires a lodging tax (called room tax here), which is 6%. Our tax bill clearly shows "Township" and not "City"

What is completely baffling, is the amount of tax being actually charged by Airbnb to our guests, which seldom is 11.5% (even if it was right by Airbnb claims), and it actually varies up to 18%. Some recent ones were 13%. 

Unfortunately we don't use Twitter, but maybe someone with Twitter account that shares a similar problem could raise this issue. Does it mean that no Airbnb employees are actually reading this board?

[Isabel3361]

I doubt they read this. I’m having a crazy hard time with Airbnb and about to give up and just go with Vrbo. 

[Nomi22]

Thanks, for posting .

[Scout8]

Nice

[Tom286]

It's been well over 2 years now. Thousands of dollars overcharged to Airbnb customers. I haven't even mentioned that this is bad for me as a host. My guests could easily afford an extra night with me if it wasn't for extra 13% tax they are paying. Ridiculous.

[Emilia42]

@Tom286 

As far as I can tell, guests are being charged a 5.5% tax.

See example below based on a 3-night stay:

$897 + $350 + $176.05 = $1423.05 

5.5% of 1423.05 = $78.27

[Tom286]

Thanks for checking. I created another ticket before posting this, so maybe they finally acted on it. 

My last group has paid $281.76 in taxes and the taxable total was $2,450.11. So tax rate was 11.5%. Current group has also paid 11.5%.

Not sure how "fixing this" would work for guests that have already booked with us, because certain totals were presented to them upon the booking. They would have likely be refunded at some point, along with 2+ years of past guests.

I can only guess that if it's fixed, it would only be visible for the brand new booking.

[Emilia42]

@Tom286 Hmm, I'm not sure of the breakdown. Can you post a screenshot?

[Tom286]

Sure. Here it is. If guests are shown 5.5% in the search screen, but then charged 11.5% or more during checkout, it's likely not just not ethical but also illegal. 

BTW, is it established that sales tax is paid on the service fee too?

[Christina1530]

I am having the exact same issue. Am about to report them to the state. Maybe a class action lawsuit for embezzlement will get their attention? Where is this money actually going that they are fraudulently charging. I am in another state but also not in city limits but guests being charged the fee.

[Janet1303]

I am also having the same issue with my listing. They are over-collecting taxes. 

[Tom286]

Good luck fixing it. It took me over 2 years. They haven't refunded anyone, but all new reservations are correct.

Where is this money going to? The state your place is located in. That's why there is no good will to fix it, exactly the same way your DMV will gladly take your money when you register your minivan or SUV as a truck (and pay way more than for a car registration).

Owners are the only ones fighting for it, especially now that the bookings are drying up due to recession. But at least you would think that Airbnb should be somewhat interested in fixing it, to make stays more affordable, right?

[Bhumika]

Hello @Janet1303 @Christina1530 ,

I came across this and wanted to ask if you had a chance to connect with Airbnb Customer support through the contact page to get more clarity regarding this query.

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