Occupancy Taxes?

[David3394]

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.

[Kristal27]

I'm trying to avoid this happening as a new Airbnb host. I realize this is an old post but I can't figure out how they are calculating my taxes which are way under what they need to be for my first two bookings. I'm hoping my new host status will help with getting some support. Thank all of you for the conversation.

[Monique51]

The problem seems to be that they are not universally remitting this occupancy tax to the local jurisdiction. I live in Nova Scotia where I’ve been hosting since the very beginning of Airbnb, and Air B&B has been collecting “occupancy tax“ on my guests. However, the municipality has also written to me just this week to demand that I remit this occupancy tax directly to them. I’ve asked Airbnb to give it to me so I can pass it onto the city or to pass it on directly, and I get no reply.

[Gerry-And-Rashid0]

@David3394

Unfortuately AirBnB, from a legal perspective, is a booking agency. The nice soft image of peer to peer, welcoming someone to share your home is just a marketing ploy. It's a booking agency out to maximise revenue, and under attack from others such as BDC, VIBRO etc

We are competing with established hotels and guesthouses who pay tax so...... I doubt very much that there is any case for AirBnB hosts being spared taxation. As @Alice-and-Jeff0 point out, it is about people paying for services, local amenities etc when they visit an area.

[David3394]

Thanks to all for your thoughtful and informative replies to my post (venting lol). I was shocked when I saw the additional $60 Occupancy Tax added to our listing. We've been systematically lowering our price and trying to attract guests. Then, I saw the tax for the first time and how it just erased all the price lowering we've been implemeting... I lost it! I'm over it now and your replies helped. Thank you! David

[Mark116]

I guess I should feel fortunate to have started airbnb before the government figured out it was a source of revenue, New Jersey now has added a sales tax 6%, an occupancy tax of 4% and this is on top of the 6% city tax that is levied, so a total of an additional 15%+...the only thing that is keeping NJ airbnb's going is NYC's total hostility to the platform. 

[Terrence1]

Greetings:  We have been hosting for our "great little beach house in Barnegat Light"  on Long Beach Island, New Jersey for the past two years.  I recently put the house back up on the Airbnb site for this summer and "tested" the availability link.  I was not happy with what I found.

In addition to New Jersey's new tax on all host properties not rented by licensed realty agents, I found a new Airbnb "service fee" of equal amount.  The NJ taxes are 11% of the rental fee.  In effect, these two new charges increase the cost to prospective guests for our house by more than 20%!

New Jersey shore listings are very competitive since there are so many concentrated in a relatively small area.  Almost 100% of guests interested in Long Beach Island have been here or rented before over the past 40 years.   Last year, all of our guests came because they already knew about LBI from personal experience, family or friends.  Price, location and value drove their decisions.  Our guests paid the rent and that was it--  No taxes, no Airbnb service fees, no cleaning fees, or other extras.  

We cannot affort to "eat" the taxes and the service fees in addition to the cleaning and linen services we have provided at our own expense.  Now each guest will pay over $400 more for the same weekly rental.  It is cheaper to rent through a realtor. 

By listing our house at the same rates with a local realtor, Berkshire Hathaway, all prospective LBI guests are free to search the realtor's internet listings and actually talk to someone on the phone.  They can request specific rental details, including personal tours of the house.    But guests will not have to pay either the NJ taxes or the Airbnb service fee.  Properties rented through a licensed realtor are exempt from the NJ sales and "hotel" taxes.  And I would not have to manage the guests, web postings and paperwork.  

The tax, although subject to amendment [maybe] this Spring, is bad enough.  We have joined the group that is fighting to have the tax amended, but we are not holding our breath.

I do not see the continuing advantage of our Airbnb listing given the tax burden and the service fee  that is now seven times last year's fee.  The incentive to host through Airbnb has evaporated.

What am I missing?  tsmith

[Paul1513]

Does anyone know if there is an Occupancy Tax (or other taxes, restrictions) in Sugar Land, TX?

[Sean511]

I don't know for sure, but we rent in Seguin, TX and just learned that we are in their ETJ (Extra Territorial Jurisdiction). *Sigh* So we got hit with a 7% Occupancy Tax from them in arrears.  Call the City of Sugar Land's Finance Department before you get surprised.

[Chris-and-Hinky0]

I also need an answer to this.  Where is Airbnb proving to me that they are paying my City this tax?

[Julie143]

We just started having the taxes automatically collected by Airbnb here in NJ a couple of months ago. It’s shocking how high they are. I’m sure it won’t be long before the town of Princeton wants their piece of the pie, as well.

People still need a place to stay, though. They have to pay the same taxes for any Airbnb or hotel in the area. There are only two hotels around that are walking distance from the university. One dates from the Revolutionary War and smells like George Washington’s old socks.

I think there will always be demand for Airbnbs, particularly during alumni reunions, graduations and football games.

Airbnb had better be passing the taxes they collect along to the state!!!

[Shariefah-and-Eve0]

Hi did you have to register your  Airbnb business at the state office before the taxes started automatically coming out?   

I registerd with the state of NJ but not sure how Airbnb is notified by the state or if they are notified at all  to begin taxing guest.

I cant find a customer service # for Airbnb to actually speak to someone

[Katie1064]

When you get the e-mail showing your payout for each guest, it usually notes how much tax they collected and remitted on your behalf.

[Glenn112]

As a b&b owner I have always had to pay sales tax and as of the last 10 years or so an occupancy tax. Having AirBnB collect them for me and pay them is unusual. I get bookings from Expedia and booking.com and they don't charge the taxes, I do. Having AirBnB collect and pay them for me is going to screw up my bookkeeping. I will have to spend extra time each month to figure out which bookings to eliminate from my tax obligations. It would be easier if AirBnB had a separate system for professional lodging proper so ties so that we could just collect and pay the taxes the way we always do.  

[Randolph1]

Hello Glenn:

In your post you said that Expedia and Booking.com does not charge you the taxes.  I'm also on both platforms (HomeAway/VRBO-Expedia and Booking.com) and they all pay the taxes (VAT-Vaule added Taxes).  I see it on all the reservations.  Just wondering

[Eddie33]

It would be weird that HomeAway and Booking.com follow different rules than AirBnB for your area as they all have to collect taxes if the county or city deems it requirement (and all won't of it's not required by law). Now, how they report things back to you and deciphering the bookkeeping is a whole different matter. AIrBnB pays the county immediately on tax collected and lists it on my gross bookings for that quarter even though I may not get paid on it till many months later when the check in happens.