Occupancy Taxes?

Answered!
David3394
Level 2
Auburn, AL

Occupancy Taxes?

Occupancy Tax is killing our listing!

 

If AirBNB is collecting and (likely) not actually paying the tax to the jurisdiction, would you please lower your service fee to help the host to be competitive? This new addition to the total price is VERY disappointing.

 

We are NOT a hotel... it's a peer-to-peer network. Hire a creative tax attorney who has some guts. Stand up for the hosts. Don't cave. This is a serious issue that has not really been resolved.

Top Answer

@David3394 - Airbnb is paying the occupancy tax to the jurisdiction or else they would not be allowed to do business there.  It's usually a part of the deal they make to not be shut out.  Unfortunately, "occupancy tax" has nothing to do with being a hotel, it has everything to do with being a "tourist tax" - so people visiting the area who use the roads, the utilities, the city-sponsored and subsidized parks, etc. - who do not pay property or income tax to the area - are charged for this.  Think of Las Vegas, Charleston, Washington D.C., any location where tourists outnumber the residents, this helps keep the area in good condition for all the extra "use" where regular taxes do not cover it.  It helps keep all areas ready for the next tourists.  

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64 Replies 64
Billie51
Level 2
Concord, CA

In California (unincorporated S. Lake Tahoe area), Airbnb has been collecting and paying the 10% Occupancy Tax directly to the County.  I still have to fill out a Quarterly Transient Occupancy form every quarter.  When looking at the Transaction History for my 10 guests during the first quarter of 2022, I realized Airbnb had paid the tax for only 6 out of the 10 guests!   

 

One rep at Airbnb said that Airbnb is legally responsible to pay it, but when will that be, if at all?!  The County tells me it's due by April 30, 2022, and I will be penalized if it's not paid.  If I pay the additional tax, is Airbnb going to reimburse me?  Can't get answers from them.  Is anyone else having this same experience?

Since we're not getting resolution to these tax matters, perhaps a class-action lawsuit is the next step??

Cheryl834
Level 2
Newport, TN

New to hosting - I'm in Cocke county, TN, and our occupancy tax is 3% - but the tax being charged on our listing is $41.00 on a $258 stay!  How do I get in touch with Airbnb to get this corrected????  No wonder we don't have any bookings!

 

Mike-And-Jane0
Top Contributor
England, United Kingdom

@Cheryl834 There are 3 taxes associated with your booking namely 

Hotel-Motel Tax (Cocke)

Local Sales and Use Tax (Cocke) Sales and

Use Tax (Tennessee)

I suspect these are meant to add up to more than 3%

Be careful if you live in a small township that doesn't collect occupancy tax, but you mailing address is in a bigger town that does.    I found out airbnb collected $2283 in occupancy taxes and paid them to my mailing address city, not my township!     I persisted and after showing that my address was in a township, they have stopped collecting occupancy taxes.    My guests got cheated, but they tell me it was paid to the nearby city.    They won’t give me a report or refund the money wrongly collected, but at least I got it resolved.    I sent airbnb a certified demand letter and messaged the tax team at airbnb daily.   Just wanted to share.    Airbnb needs to get better at determining jurisdictions for occupancy tax!