NM Gross Receipts Tax help & how to obtain proof of Airbnb GRT collection and remittance - July 2023

[Becca2118]

I opened an Airbnb in Abiquiu, NM in Feb this year (2023).  I wanted to start a new conversation because I was doing deep dives into informative threads that were several years old and I believe procedures have changed on Airbnb since then and there are possibly more answers available to hosts on this matter. I am currently in the insane world of figuring out the collection and remittance of Gross Receipts by Airbnb and how to file my GRT correctly. Yesterday, I had an appt with NM TRD in Santa Fe and I was told to enter the deduction code 'service for resale' 7-9-48 to zero out the taxes due. The women who helped me said that was the "best code option and the important thing is that I entered a code". She did say that I needed to obtain documentation for my records that Airbnb is in fact remitting GRT taxes on my behalf. She didn't specifically say to obtain or execute a NTTC or a TD 22 (which I've read in older threads). Another thing to note is that I believe the previous deduction code G0-999 that hosts were using isn't available to use anymore. When I set up lodger's tax earlier this year, they informed me of that deduction code but I don't see it in the GRT filer's kit booklet. Furthermore, after calculating the "occupancy taxes", which I assume means GRT, the numbers don't add up. I've read previous threads that Airbnb was overcharging taxes. Looks to be the case in my situation but it's hard to tell, being that there's no way to know if their occupancy taxes include any other hidden taxes other than GRT. Any which way I do the math, nothing makes sense for my local GRT numbers. Lodger's Tax told me to manually add our 5% tax to my listing, which I did, and Airbnb has been successfully passing through the correct amount to me as a separate line item and I pay that amount to Lodger's Tax every month. I'm due to file GRT this month and while I can put in the deduction code and zero out my taxes due, I have no proof from Airbnb that they are filing correctly. Now that Airbnb has been collecting GRT for a while, have any other hosts been able to tackle this process correctly or obtain proof from Airbnb? Any advice would be helpful. Thanks.

[Dawn241]

This is a global forum. Do you have a grass roots short term vacation rental organization in NM like we do in here AZ? That’s where I got the info on you are asking about. 

[Becca2118]

@Dawn241 Not sure if we do but I can look around. Since I posted that update, I did find out they were calculating taxes correctly but their generated CSV’s don’t reflect it property, which is why I was so confused. In regards to proof that Airbnb is remitting state taxes correctly on my behalf, I’ll try to ask around locally. Thanks.

[Crissy21]

Hi @Becca2118  I am having the same issue. Did you find out where you can find proof that the taxes have been remitted? The state I am in (Va) sent me a letter stating my taxes has not been received. I can’t seem to get Airbnb to provide me with proof 

[Becca2118]

Hi @Crissy21 - I'm just seeing your reply now. I haven't had any success getting Airbnb to provide proof. I did hear from a state tax employee here that they have known Airbnb to remit the taxes and that they have established nexus in our state but I'm really not sure how we prove it when asked about it. I'm sorry you've gotten a letter from your state. That's frustrating, seeing as we can't seem to get anywhere with Airbnb.

[Lorna170]

The short answer is that AirBnB will not provide you with any document that "proves" they paid your taxes on your behalf.  

In order to protect myself and at the advice of my accountant, I file (zero tax due) tax returns to my state, county and municipality with a form letter stating that the taxes are collected by AirBnB  VRBO and other OTAs, are not paid to me and that AirBnB provides no documentation to show that they have paid the taxes collected to the authority.

[Becca2118]

Thanks @Lorna170  It appears that's the only way. I reached out to Airbnb again and they said they won't provide any proof. My NM state tax authority told me I needed some kind of written proof from them but I know that's just not possible. Hoping that a form letter like yours will work. I'm waiting to hear back from my accountant on the best way to proceed.

[Ramiro35]

Its October 2023 and I have no way of finding remittance from either side, its rediculous that this is an issue. They say they will even withold up. to 30% per stay to make sure that it was covered and I know I saw it in the fine print every stay remitted occupancy and taxes. So why they hold the money seems only for one thing, they get to keep it in not claimed. I just dont understand this process they said click here and we will collect and pay but where did the money go. BEYOND FRUSTRATED trying to figure this one out for months as they leave me holding the bag for 10k in fines.

[Dawn-and-David0]

Hi @Dawn241 

I'm in AZ. How do I locate the AZ short term vacation rental organization you're speaking of?

[Dawn241]

AZRT Arizonans for responsible tourism

[Ramiro35]

OK well so far what I did was able to download the CSV. 

for years 2021 and 2022

This is indeed proof that AIrbnb withheld the money under occupancy taxes Column P

To get total I just used google sheets to add formula 

=SUM(INDIRECT(ADDRESS(1,COLUMN(),4)&":"&ADDRESS(ROW()-1,COLUMN(),4)))

that creates a total for all above that cell

This will be vital in finding the lost money which came to about 6k for me. 

Hopefully this helps look under earnings, search criteria for each year and download CSV this will

at least let you know how much was collected via BNB

[Lee5439]

We have a vacation house in Placitas we rent during the ABQ Balloon Festival using VRBO. I can log into my VRBO Owner's dashboard and see exactly how much they withheld from me and paid to NM for State and Sandoval County GRT. They also indicate how much they think I should pay to Sandoval County for Accomodation Tax.   Airbnb doesn't provide this info to you in your Owner's Account somehow??   Lee

[Sierra121]

Well, I called the nm taxation and revenue dept and the woman I spoke with said to enter my gross earnings and then deduct them and they don't need a code anymore. I asked her how they would know why I deducted it and she said they "just know because Airbnb pays the taxes". So.......that's what I did. If you've used the TAP website you'll note there aren't a lot of options for extras so it was quick and easy. Who knows if it's correct? But that's the way to do it according to the woman I spoke with. Because you know.......New Mexico. heh heh

[April662]

I'm setting up my GRT account with the state and it asks how often GRT will be filed. Do you know if Airbnb remits GRT monthly, quarterly, etc.?