Kentucky occupancy taxes

[Sarah5023]

House bill 8 passed in Kentucky. Legally requiring airbnb to withold local taxes as of January 1, 2023. Airbnb is persistent that they are witholding and going to remit to local tourism agencies. In my case 3% Powell County and 3% Stanton along with the 6% sales tax and 1% KY transient taxes. Powell County Tourism and Stanton Tourism says we should continue to pay as they have yet to receive deposits from airbnb. Essentially being charged twice. I spoke with state tourism and they also advised that airbnb IS WITHOLDING. What is everyone else doing? Are you contuing to pay on your own in addition to what airbnb says theyre witholding?

[Bhumika]

Hi @Sarah5023 ,

Were you able to get further information on this matter?

Have you also reached out to Airbnb Customer Support to know more about it?

[Sarah5023]

YES. I've been talking to them since February. They have still not given any insight other than we're witholding and going to remit to your local tourism agencies. I've sent these messages and emails to tourism and county attorneys office. Even with this knowledge they intend to turn many hosts in and penalize them. I'm going to pay the past two months and then notify airbnb so they know not to include mine in the deposit they get I guess🤷‍

[Sarah5023]

Yes! Airbnb is not in compliance all though they intend to be. Theyve stated they will be sending a large sum. Theyre wanting the state to set up a system to distribute it. Either way hosts in kentucky are not obligated to pay local transient taxes in KY as of January 1, 2023. This is by law airbnbs responsibility. It's optional if hosts want to continue paying. I'm not sure if it's legal for local tourism to be threatening hosts for payment. 

[Jane3930]

I have a similar issue which seems to be recurring on this forum. Did Airbnb get in over their head on this problem? 

Not sure.

At any rate , has anyone cracked the code to get a phone number or email address to get assistance with this issue (potentially exposing hosts to $$$ tax payments? ). I'm tempted to email the CEO if I have to. 

[Bhumika]

Hi @Jane3930 ,

Did you figure out on contacting Airbnb Support regarding your concerns?

Here is an article that may guide you on Get help or contact Airbnb Support.

[Lorna170 · Accepted solution]

@Sarah5023  When AirBnB started collecting the taxes applied to my property, I approached my accountant and requested advice on how to show that my taxes were being paid by a third party and I was not receiving the collected money any longer.

His advice was to continue to file my tax returns with my local municipality, the county and the state with a written addendum stating that taxes were collected and (to be) remitted by AirBnB.  This gave me a paper trail to submit to the tax authority in the event of an audit.

I confirmed with the State tax office that this was an acceptable means of reporting my income and showing that the taxes were being remitted.

Note:  AirBnB will display on their website the taxes collected from each guest, but there is no document provided to show that the collected taxes were paid to the tax authority, when they were paid, and if the tax authority has applied the payments to my tax account.