Arizona TPT and Airbnb taxes collected

[Jennifer3640]

I see there are some older posts but I wanted to see if I could get a clearer answer to my questions. 

airbnb collects taxes on each reservation in az. Where does that money go? And if it goes to az dept or revenue then why do I not see it in my TPT account? Do I need to add the TPT number in my Airbnb account somewhere?

And, if Airbnb is paying taxes on my behalf then what am I paying for when I file monthly TPT statements?

Thank you in advance to everyone who can break this all down for me so I do the right thing

[Suzanne862]

Hi, so I’m not in  Arizona so I don’t know your specifics, but air bnb also collects taxes on my bookings.  I spoke with my city and the representative  said they don’t have an agreement set up with air bnb for tax collection, but when it comes time to fill out the monthly report she instructed me to do the following:  enter the amount I made in a particular month, then enter that same amount in an Other field so the tax owed by me shows $0.    That way they know what has been collected by air bnb and what to look for when they do end up sending the money to my city.   Don’t know if that’s helpful but know there are other scenarios like yours.  😊

[Jennifer3640]

Yes thank you very much!  I am hoping too an AZ host might respond but I did understand from 2018/19 posts the entering of zeros and entering a 775 code. January 2023 will be my first month of making money. I just started hosting…

[Mark5313]

Hi. What tax form is used?

[Bhumika]

Hello @Jennifer3640 ,

Welcome to the Community Center! 🌻

Here are a few articles that I was able to find regarding Arizona Tax Collection and Remittance. 

👉How does occupancy tax collection and remittance by Airbnb work? 

👉Occupancy tax collection and remittance by Airbnb in Arizona 

👉Information about Regulations and Taxes in Phoenix,AZ 

As this articles are very generic and tax matters can be sensitive, you can also ask your query to area-specific hosts by looking into  Local Host Clubs near you who would be able to provide you with more reliable information. I hope this helps.

Can’t find what you’re searching for? start a conversation

[Lorna170]

@Jennifer3640  You should speak to your tax accountant.

AirBnB collects the taxes for my location and purportedly remits it to the State, County and municipality.  I get NO verification of this, and there is nothing in the AirBnB reports stating that X amount of taxes have been paid on my behalf.  I have to take it on trust.

When I file my monthly, quarterly and annual reports, I include a statement letter saying that the taxes were collected by AirBnB on my behalf, were paid by AirBnB on my behalf and my report indicates that zero additional taxes are owed by me unless I have a direct booking where I collected and owe the taxes.  I did this on the advice of my accountant and after speaking with the various tax departments, who confirmed that this is the process I am to follow.

[Jennifer3640]

Lorna thank you that is very helpful. I sent an email to the AZ Dept or Revenue too asking what their process is to link what Airbnb collects to the transaction privilege tax account I have, both who have my SSN. Your suggestions along with their response is what I’m going to save in my records. I appreciate the time you took to respond!

[Dawn241]

AZRT- Arizonans for responsible tourism- provides information and support on this and other STR topics. The long and short is this. Airbnb collects and remits on your behalf. You still have to file TPT using an exemption code which shows online platform already collected, and you don’t need to pay again. I file quarterly and just remembered I have to do April/May/June now. 

[Jenelle16]

what is the exemption code?

[Michael8449]

Hi Jennifer, I am new to TPT and recently went down the rabbit hole with this. AZ requires Online Lodging Marketplace aka Airbnb/VRBO, etc to complete an exemption Form 5018. This is a certificate that pretty much says the owners of the property are exempt from having to pay taxes. It is required by AZ law. I have spoken and messaged with multiple Airbnb reps and none of them have any idea on this and have said Airbnb will not complete this form. So any information you have and can save from the Airbnb site that says they will remit the taxes on our behalf is a good idea to save just in case. 

To answer your question, when filing TPT returns, you have to enter your gross receipts then use deduction code 775 and enter the same number (gross receipts) then the net liability is 0. Therefore, you don't have to pay anything since it's already being paid by AIRBNB on your behalf. 

Here is the link to the Form I mentioned above. https://azdor.gov/forms/tpt-forms/online-lodging-operator-exemption-certificate-be-completed-olm

[Mark5313]

Hi. So all they look for is the 5019? Any other form like a 1099?

Thanks

[Dee1385]

AZ requires to keep a copy of form 5018 which you get from Airbnb that states you are exempt for paying sales tax on transactions because they collect and remit the sales taxes to the state.

[Dee1385]

That is the correct answer, thanks.  You have to work with a very disorganized Airbnb spreadsheet you have to download form your Airbnb account, but once you figure out what figures come from where because they go in all directions, all you really need is to scroll to the last 3 collums and I deleted the year in the last column and I entered a sum formula to generate a Grand Total that included the Gross Earnings (rent plus cleaning fee if applicable) plus Occupancy Taxes. 

Example: 

3787.85

68.18

3856.03

enter in cell U7 the formula =S7+T7 in my spreadsheet which gave me the total to report on the AZTPT tax report 

 The only reporting change is when it comes to deductions; enter the same amount under code 775 and  it will result in net zero taxes due. 

[Dan-and-Shaina0]

Hey there thanks for this info. Where are you finding this spreadsheet? I swear this should be way easier to find. thanks

[Clara1009]

I got a call yesterday from AZtaxes.gov they said I need to report monthly income not with a zero but with an actual value and then I need to use a deduction code. They didnt give it to me.