Placer County TOT

[Lindsey374]

I am new to hosting and included the 12% TOT tax in what I charged (since I understand it is not collected separately on Airbnb). I am doing my TOT worksheet for last quarter and understand that I am to include the rent + cleaning fee in line 1 (Gross Rental Income). However, the TOT website says the following is also taxable:

Reservation and booking fees including host service fees/guest service fees charged by online reservation sites (fees billed and
itemized for guests) 

Is this the Guest Service Fee that guests pay and/or the Host Service Fee I pay to Airbnb? 

Any advice on making this tax collection easier/more streamlined would be greatly appreciated! Thank you!

Added: I realized I could have the 12% tax added to reservations so I have switched to that going forward. I checked the boxes to tax base price and cleaning fee. Do I need to include anything else?

[Lorna170]

@Lindsey374   IMO, it means the service fee that the guest pays to AirBnB (Gross receipts). The 3% fee that AirBnB charges you for using their website and taking the guest credit card payment is deducted from your rental rate (Net receipts) and becomes an expense on your 1040 Schedule E (or C).  

As to your second question, taxing your base price and cleaning fee are all that you have to check unless you have some other fees that you charge your guests (Pet fee for example).

[Lauryn63]

Hi @Lindsey374 

I am new to hosting and didn't realize Airbnb doesn't collect taxes! I'm now remitting TOT taxes and realizing this. How did you set this up to add taxes when collecting from guests? I have another place in Pollock Pines and Airbnb collects taxes for this listing. Is there a reason they would collect for El Dorado county but not Placer county? Are you willing to connect and help me make sense of this? Thank you!!

Lauryn

[Bhumika]

Hi @Lauryn63 , are you still looking for any help with the tax related question?

Since your comment is on an older thread, hosts might miss out on your concerns. If you are still looking for advice, please feel free to 👉 start a conversation by clicking here👈 

I am also tagging @Lorna170 as the host shared some suggestions in this thread earlier, in case she has any specific guidance for you. Thank you @Lorna170 in advance 🌻

[Lauryn63]

Lorna provided me with the answer!! Thank you!!

[Lorna170]

@Lauryn63   AirBnB has to reach an agreement with each tax authority before they will "automatically" remit to that taxing authority.  That is probably why they will collect and pay for El Dorado but not for Placer.

You can add the Placer County tax rate if you go to the listing editor, select the settings icon and scroll down to taxes.  Then select custom tax collection.

[Lauryn63]

Thank you so much, Lorna! I was able to find it in the listing editor. Have a good one!! Appreciate your help!

[Bhumika]

I am so glad @Lauryn63 that @Lorna170 's reply was of great help! I am tagging the host, so she can see your lovely thank you note 🌻 If you have any other questions, please feel free to reach out!

Warm regards,