Cleaning fee and taxes

[Christina27]

Looking to find out how other hosts charge guests their rental rate with taxes that include the cleaning fee.  For example sales and county taxes are based on % of rental sales + cleaning fee.  I have no idea how to incorporate a tax where the % calculation includes the cleaning fee.

For Example:  $1000 rental rate x 6% sales tax = tax to pay state

Correct way:  $1000 rental rate + $300 cleaning fee = $1300 x 6% sales tax = tax to pay state

Any ideas?

Thank you in advance.

[Nicole147]

Christina, 

did you by any chance get an answer? I'm trying to figure out the same

[Paul-And-Jennie0]

Looks like Air bnb is now collecting sales tax on the rent and the cleaning fee.  Or so it looks from my listing.  I'm new to this.

I noticed the taxes collected on Home Away are for the rent only?  Not sure if we pay for the cleaning fee taxes where it's a service and not part of the gross rent.  

[Karen760]

I'm not sure It is not legal to charge taxes on cleaning fee. Nor is it fair to the guest.

[Ana1039]

This is what I found today online:

What charges and fees are taxable?

All mandatory fees charged to the renter are considered part of the amount paid for occupancy and are therefore taxable. Sales and occupancy taxes are charged on total consideration (money or value) received from the renter.

Some examples include cleaning fees, nightly rates, extra person charges, credit card fees, pet fees, etc. However, refundable deposits are not taxable.

[Gwen276]

Vrbo/Homeaway just recently took over remitting taxes for owner to various entities.  Cleaning fees are now taxable.  This was not the case previously.