Arizona Transaction Privilege Tax Withheld?

[Richard3655]

Hi, I am curious to know if anyone may know whether withholds TPT taxes as part of phoenix, tax code. I see remitted taxes in my report but the wording is vague as airbnb states they may not withhold all local taxes. 

Does anyone have experience with this?

Thank You

[Elisa]

Hi @Richard3655 😊, 

Thank you for asking this question here!

Have you found an answer in the meantime?

I’m sharing this article with you, it might be helpful 👉 Chandler, Arizona, USA 

I’m also mentioning a few hosts from Arizona to see what advice they might have for you: @Marie8425, @Dawn241, @Klarisse0 and @Robert7623.

Thank you in advance everyone!

Warm regards 🌻,

[Marie8425]

@Richard3655 

I start with my disclaimer, I don't claim to be a tax expert.

Arizona State define the tax for STR as

Please note: Hotel, motel, or other transient lodging businesses that book stays for fewer than 30 days must still collect and remit TPT under the transient lodging or hotel classification.

Airbnb usually has agreements with states who of course want hotel tax income.

Airbnb does not make agreements at a city level.

• State TPT:

  Arizona imposes a 5.6% TPT on the gross receipts of short-term lodging businesses for stays of 29 nights or less. 
• City of Phoenix TPT:

  Phoenix has its own TPT, which is 2.3% for many business activities, including short-term rentals. However, the city also has a Transient Lodging tax for rentals of 30 days or less, which may be in addition to the TPT. 
• Maricopa County:

  Maricopa County also imposes taxes on short-term rentals, which are in addition to the state and city taxes

[Marie8425]

@Richard3655 

I am not a tax expert. Haha

Airbnb when they pay taxes do not tell the state whose taxes individually they are paying.  They have negotiated agreements to pay what they calculate for all listings in Arizona in one lump sum.

I do not believe that Airbnb has any city agreements.  Phoenix is a large city with a large STR market but the U.S. has a lot of high volume cities and Airbnb deals with more than the U.S. so I would not think that they deal with taxes at that level.

[Marie8425]

@Richard3655 

Guess what I am wrong Haha.

On your listing the little gear icon at the top

I clicked on that\

Then I picked taxes

I got the following screen

[Richard3655]

You wouldn't by chance know when that TPT tax is paid on behalf of airbnb would you? We are in July and the city has been hounding me about the payment that I swear has been remitted by airbnb

[Joan2709]

@Richard3655 

According to Airbnb, you need to register with the City of Phoenix, Maricopa County and get a State TPT license. 

City of Phoenix, Arizona & Maricopa County

https://www.airbnb.com/help/article/877

If you haven't done that, this could be why they are hounding you for the taxes. Some jurisdictions still require you to get a license, comply with any STR reguations and report income generated, even if Airbnb is collecting and paying the taxes. 

[Joan2709]

@Richard3655 

Here is what a reservation shows as to taxes on your listing when I try to book as a guest. Airbnb does not disclose percentages; you will have to contact each tax jurisdiction to determing the correct percentages. Then do the math to find out if Airbnb is collecting the right percentages. You are also responsible if there is a tax that is owed, but Airbnb is not collecting or remitting it:

[Richard3655]

Thank you for showing me this is very helpful