Massachusetts New Guest Tax???

[Ken-and-Kathleen0]

AirBnB collects and remits taxes in 40+ states, PR and the US Virgin Islands, but for some reason, the tax they were a proponent of in Massachusetts is not even mentioned.

There have been no updates by AirBnB on how they are going to help their hosts handle this tax which according to the State information includes all fees cleaning, and service (AirBnB Service Fee?) and the Security Deposit.

The bulk of Massachusetts AirBnB revenue in Massachusetts would have to come from Summer Rentals in places like the Cape, Martha's Vineyard, Nantucket and the Berkshires. 

Without some sort of resolution, or at least notice from AirBnB we're faced with either eating the tax, reporting costs, etc. or just cancelling all of our summer reservations. 

[Pat338]

Thank you. I've been a fully licensed, inspected, insured, ServSafe trained Bed and Breakfast home for going on 9 yrs now and only started to list on Airbnb recently as I was losing so many quests to their platform.  I've contacted them and told them exactly what you have stated; that Mass Dept of Rev left the exemption in place for Bed and Breakfast homes.  I've even directed them to Tech Info Release TIR 19-3 and they look at me like I have two heads.  No answer.

Please share any information you may have and I will do as well.  Do you let Airbnb collect taxes for guests coming through their platform and then not collect taxes for reservations coming in through your private website, walk-ins, and phone reservations??? that's gonna look a little funny at the end of the year

Pat

[Cody64]

I have a 2 family home in Quincy, Ma and I Airbnb out the 1st floor.  Is that exempt?

[Julie1751]

Hello Heather- have you had any clarity about the short term rental tax? Airbnb says they collect the tax for those who booked after May 1 for checkin after July 1.  The transaction report, gross earnings column, does show an occupancy tax charged to those fitting this description. What I can't determine is HOW did airbnb get permission from me to remit the tax. I just went through quite a hassle to get a registration and certificate number on Mass Tax Collect. Airbnb doesnt have that set of numbers. WHERE and HOW are they paying taxes on my property?     Anyone else encounter this and come up with an answer?

[John47 · Accepted solution]

@Julie1751 
1) Airbnb doesn't require permission to remit tax because they are required by law to collect & remit as they are the intermediary.

2) You as host as still required to register with Mass Tax Collect for other parts of law and should you get a rental directly (maybe a repeat guest?), you'll need to collect/remit it.

3) They are (as i understand it) doing the payments in 'bulk' without any linkage back to individual hosts.

[Kevin1307]

Julie, I am having the same issue. I registered with the state as they instructed and paid the taxes due as they figured out. Both the state and I are unaware that airbnb already collected and remitted taxes on my behalf. I asked airbnb for their certificate #, confirmation #, any proof that these taxes were paid. they did not provide me with anything. So as of now the state has been paid twice? I was never told by airbnb these taxes were being charged and paid. The state never said, that address is already on file.

Please keep me posted as I will be calling the DOR and I am sure they will be of little help.

[John47]

@Kevin1307 
Due to the weird nature of how this forum works which makes detecting new replies quite difficult, I'm replying here also to your post that is similar to another one of yours here.
So I'll address a couple of points mentioned in THIS post:
1) Given that Airbnb is the only one in this situation that's legally responsible (and able) to collect and remit taxes, what prompted you to file/remit anything for your ABB rentals?
The law is quite clear on this aspect, which is that an intermediary is solely responsible for taxes unless you went from exempt to non-exempt status which affects all prior rentals/taxes.
2) Airbnb has limited responsibility (that I know of) to inform you of what they have done or not on your behalf.
3) Airbnb may have previously indicated in error  that hosts were responsible for taxes until they got their site/software updated, but that's not true as ABB was always responsible, even though many there didn't know it, it seems.

[Ellen414]

Hmmmm. Are we who rent ABB guests a room in our own homes for no less than 30 days exempt or not exempt. I assumed not exempt but your above response has me confused. Do we as operators have to pay the taxes rather than ABB as intermediaries if we are not exempt. Ugh. I am so confused. 

[John47]

@Ellen414 

Your first sentence has way too many items listed that makes it hard to answer.
However, the basic rule is that: Was rent paid thru/via Airbnb? Yes? Then THEY are totally responsible for any taxes to collect and remit.
Did guests pay you directly? Yes? Then YOU are responsible to collect and remit.

 The exemption is for 1-3 rooms in owner occupied home where breakfast is included.
Is that your type listing? If so, then you're exempt BUT it seems Airbnb has yet to implement a way to define/indicate that your listing is one of those. And that's a problem for you, Airbnb, and DOR!

Addendum/Update: And any bookings for 31+ days are exempt by default.

[Ellen414]

Thanks. Helpful!! Now that I have a ROC registration number from MassTaxConnect I can’t get ABB to accept the number. Anyone had trouble with this?

[John47]

@Ellen414 
There's a few different numbers that you get from DOR - the one you need here is the "C"+10 digits one. Is that the one you tried using?

[Ellen414]

Thanks but for some reason I received as a registration number ROC-12xxx179-003. It’s definitely not C +10#. Hmmmm.May have to call Mass.gov. Thanks again for assistance.

[John47]

@Ellen414 
Remember that i said you get multiple nbrs of various types - i think i got three at least - the C0xxx is one of them and i think it came in a few days later.

[John47]

@Ellen414 
Just a quick addendum: Your ROC nbr is the Room Occupancy acct ID which identifies you. The C# is the Certificate nbr for that particular property, I believe, and I'm quite sure it came separately later.

[Ellen414]

Thanks so much. Will watch for more #. 

[John47]

@Ellen414 
Added this thought: And since I did mine back in July, I don't remember all the details of what I had to do  but I think registering the property was something that I had to do as separate task after getting the registration for me as owner/user. Since an owner may have multiple properties and the tax is linked to that property as they may be in different towns/cities. So have you completed ALL of that?