Occupancy tax. In New Hanover County

Todd667
Level 3
Wilmington, NC

Occupancy tax. In New Hanover County

In New Hanover County, the occupancy rate for accommodations is subject to a 6% Room Occupancy Tax. ...2.

 

I am in the county not the city. This is my occupancy rate. However look at this. Can you explain?

Thank you in advance. To me it looks like we are way over charging the guests. I may be missing something.  It should be based on 740?

at 6% that is about half? 

 OCCT.jpg

1 Reply 1

@Todd667 

This is a screen shot of the taxes being collected on your reservations. They include:

 

New Hanover Occupancy Tax (6%)

New Hanover Local Sales & Use Tax (2.25%)

State of North Carolina Sales & Use Tax (4.75%)

Total Taxes Each Reservation = 13%

 

Joan2709_0-1741666802326.png

 

In your above screen shot, Airbnb is calculating the taxes based on:

  1. Nightly Rate
  2. Cleaning Fee (and any other fee like a pet fee)
  3. Airbnb Guest Service Fee

Just to note... not all states in the US apply sales tax to the Airbnb Service Fee, but do tax the nightly rate and the cleaning fee (and any other fees). You'll have to verify with the state of NC if Airbnb should be charging sales tax on the Airbnb service fee.

 

Total of Nightly Rate+Cleaning Fee+Service Fee=$739.48

$739.48 x 13%=$96.13

 

The taxes appear to be correct.

 

Occupancy Taxes – North Carolina

https://www.airbnb.com/help/article/2320

 

North Carolina Sales & Use Tax

https://www.ncdor.gov/taxes-forms/sales-and-use-tax/sales-and-use-tax-rates/current-sales-and-use-ta...

 

New Hanover County Taxes

https://www.nhcgov.com/1001/Room-Occupancy-Tax-Information