Local occupancy tax

Answered!
Michelle3518
Level 2
Smiths Grove, KY

Local occupancy tax

I am new to arbnb 3 months now . I was under the impression that arbnb took care of collecting and remitting state and local tax on the hosts behalf , the first month hosting I received a form from Warren county ky to pay my transient / short term rental tax . I reached out to arbnb and wanted to make sure that it was something that they collected from guest on our behalf . I spoke to a representative for awhile and even sent the a copy of the document i received and they assured me again that they take care of it all .
  So now after the third month in a row receiving the same letter  I called Warren county treasurer and he said that arbnb had not been sending any tax payments on my behalf .  I then contacted arbnb again and they informed that they do not collect the local tax that I have to personally collect it from the guest so now not only will I be fined by the county for late payment  I have several past reservations that I will have to submit tax payments for that were never collected  from the guest . Has anyone had an issue like ? 

Top Answer
Pat271
Level 10
Greenville, SC

Yes, it’s common for Airbnb to collect some taxes, but sometimes not all taxes that the jurisdiction requires. It would be a tall order for Airbnb to learn and implement all of the local tax laws for the thousands of municipalities across the planet. It’s up to you to look it up on your tax district website, make a few phone calls, obtain and pay for licenses and permits, and whatever else is required.

 

You can collect the taxes that Airbnb do not remit by enabling Professional Hosting Tools, and then completing the field in the Tax section of the listing setup. Then the taxes, which are usually a percentage of the revenue, will be added as a line item on the guest’s invoice and included in the total they owe for the stay. @Michelle3518 

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16 Replies 16

Here in Nevada,  airbnb just taxed a booking for 50 days for occupancy tax in Henderson. They added that to the charges they took from the guest credit card. This was not send to me .The guest complained and I called the Henderson  short term rental code enforcement and their  financial  officer.  They informed us , that according to Henderson municipal code a occupancy tax is only asked for rentals under 30 days. Airbnb has instead a explanation on their site that any rental in Henderson NV even if its 90 days has  to pay occupancy tax for the first 30 days of any length stay even 90 days  or more . The city official never heard of that . It is not required by the city . So where is that collected tax going  that the city does not require ? Anyone else had that ? 

Leticia422
Level 2
Redlands, CA

To whom it may concern:  It turns out I don't have to collect (TOT) taxes from my guest. I turn off/deleted the "TAX" setting

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I called a tax professional, and they could not figure it out. I walked into my county/ San Bernardion County with their TAX form filed out. Name of the form: "Uniform Transient Occupancy Tax/ TOT ) They said they did not collect Airbnb Taxes, and handed the from back to me. I called the IRS/FED too special tax team, and no one could help me out.

 

*Finally I called my city. Called the department that issued my ""Business License" for my room/short term renal/DBA: The Nested Garden. They informed me that I DO NOT HAVE TO CHARGE BED TAXES/(TOT)

 

They informed me that at the "END OF THE YEAR" the city will send me a from asking me how much I made for the year. If I made 10k, 20, 50, etc., they will tax me accordingly on the total amount I made for the year.  

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✔  The city collect the taxes off the total sales...   This is answer I received today 8/31/2021 from my city in the county of San Bernardion CA. 

 

I hope this helps ... this was nuts... : ) Happy Hosting! 

 

I called my City and talked to the department that issued me my business license DBA for my airbnb The Nested Garden.