Sonoma county TOT tax collection

[Lucy0]

Hey guys. I'm planning to rent my home in an unincorporated area of Sonoma county sporadically while I travel in 2016, so am in the process of registering with the county for TOT tax collection and a permit. There is at least one aspect of the TOT tax collection it doesn't appear that we can conform to, namely Sec 12-13 (copied below). I was wondering how other hosts are dealing with this issue?

 "The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the Operator. No Operator of a lodging shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the Operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner provided by this article."

[Deb0 · Accepted solution]

Hi @Lucy0

We have the same situation up here in #Mendocino. I send a separate invoice and request payment via PayPal or check upon arrival. It's a total pain but I have developed a system that makes it work. Here are my suggestions:

-put a photo of your license in your photos and write a caption letting them know you'll be contacting them after booking to arrange TOT payment

-include same text in your listing description

-after reservation is made message them promptly with thank you note and payment instructions on the tax. I copy and paste the same message to make this a bit easier

Still hoping Airbnb will write the code for a simple line item so we can add TOT tax to our guest invoices and comply with local laws. It's pretty insane that a Airbnb is a global travel company does not offer this to their hosts!!

Good luck

[Alyssa3]

I sent all of my guests a "resolution request" through airbnb. Some guests refused to pay it, some paid it. I guess it's better than nothing, as I have to pay it all anyway. I live in Sonoma. I talked to Jan at the County TOT office, and she said that airbnb has permission to add the tax box, and collect tax for me, but airbnb sent me this:

Evan, Mar 8, 12:34:

Alyssa,

Airbnb is not able to provide tax advice or advise to how local taxes affects your situation. For specific tax advice, I suggest working with a tax professional that is familiar with short-term rentals.

If you need to add taxes to your rates, please clearly explain the tax in your listing description so that potential guests are aware. You can increase the price of your listing to accommodate the tax percentage, or, after you've established the dates and number of guests for a potential reservation, you can use the Special Offer feature to set the correct price. 

If you choose to collect a tax outside of your rates, we’re unable to assist in collecting the additional amount. Please be clear in your listing description and communication with guests so they can budget appropriately. We also ask that it is not collected before the time of arrival.

Airbnb’s ability to facilitate tax collection involves a number of factors, including discussions with tax authorities for the area—which could be at the city, county, state, or other jurisdictional level. We’ll let you know if an occupancy tax related feature becomes available for your listing. If you’d like to learn more, the Local Tax section of our Help Center has additional information:https://www.airbnb.com/support/topic/264 

Best,

Evan

Hopefully, Airbnb will let us have a tax field soon, because this is expensive for me! 🙂

[Lucy0]

Thanks for the response Alyssa!

It's interesting to hear from the county that AirBnB could add this! I always presumed it was the county side holding up the process (because they seem to understaffed), but i'm really disapointed to hear that it's AirBnB.  Until AirBnB add a line item I know most of the hosts in my part of the county will continue just not paying TOT. It's so frustrating to be paying a tax I know my neighbors aren't 😞

[Stacey1]

It is absurd that AirBB has not incorporated a line item for guests to pay the additional TOT tax required by the county. The other housing competitor has made it significantly more easy to calculate the 9% tax rate and makes it very clear for guests upon booking. We are honest hosts and will always pay the county, but it takes a chunk out of our rental fee if it is not upfront or transparent to the guest booking. 

Furthermore, calling a request for additional tax payment a "Special Offer" is ridiculous. A "Special Offer" is a discount or other payment reduction, not an INCREASE for payment.

Maybe with enough pressure from AirBB hosts, we can have the company develop this additional line item as they are already asking this for cleaning.

thanks!

[Steve146]

Am i wrong or does Airbnb benefit from this arrangement. Do they collect their 12% on all dollars plus TOT if we add it to the Special offer. They are collecting tax inmany local counties, Humboldt is one. why can't they do so in Sonoma County? makes no sense and forces us to do alot of paperwork, and extra steps. what's the point of airbnb if we have to spend hours collecting a simple tax.

[Tom162]

Hi Steve:

This is a multiple question message.

I have the same question as I am new to AirBNB.  On a side note, you mention a 12% TOT for Sonoma County however, I just went to the Sonoma County website and it states it is still 9%, unless I am looking at the wrong area?  I want to make sure I am collecting the proper amount.

Also, another Host mentioned in a chat discussion to try booking your own place after logging out of AirBNB.  It will show if the 9% tax is added to the charges.  It did it with mine and it showed the 9%.  The question I have now is, is AirBNB automatially submitting it as their site implies or are we supposed to submit it quarterly like we do on VRBO???

Thank you and sorry for all the questions!

[Michael97]

You are right Steve.  It's not in the interest of Airbnb to make the change because they (Airbnb) receives it's revenue based upon the price charged to the guest.  In my case our home is in the City of Sonoma which has a 12.5% TOT which I inform the guest that it is "included" in the price, which is a nice bump for Airbnb.  I have complained to Airbnb many times and asked for a "tax button" to be added to the software, a very, very easy fix.  If you notice now Airbnb collects the 12% TOT for the county but NOT for the City of Sonoma.  Exteremly frustrating since Airbnb "claims" to be "transparent" with guest & host.  All other vacation rental sites have a tax feature written into their software so the guest knows exactly what they are paying for, and the host has a record of the tax collected & remitted.

[Mike207]

Hey folks - I just received an email saying that AirBNB will start collecting Sonoma County TOT as of January 1, 2017. This is great news. 

What's unclear to me is whether or not they will collect this tax for booking that existed prior to 1/1/17 for reservations that begin after 1/1/17. The language in the email is ambiguous and I'm not holding out hope that AirBNB support will get back to me on this. Anyone know what the story is? Do I need to collect TOT for folks who've already booked (prior to 1/1/17) if their reservation STARTS after 1/1/17?

[Rawson0]

Hello Mike,

I have the same question. I have many reservations in 2017 that were booked prior to November when the letter states the agreement was made. The Airbnb instructions to see this line item is unclear and I can't find that in any of my reservations. Did you ever get the answer to your question about reservations booked prior to the agreement?

Thanks,

Rawson

[Mike207]

I haven't actually gotten an answer to my question. Sorry - wish I could tell you the answer.

I'm assuming that they will NOT collect tax for bookings made prior to 1/1/17 and they will collect tax for bookings made after 1/1/17. I'm not sure if this is right but this is what I'm going with!

[Steve215]

Any updates on Sonoma County tax collection by Air B and B?

[Tony88]

I have an issue with Airbnb collecting the TOT tax on my behalf.  I keep good accounting records on all my bookings and since Airbnb does not have a tax rate box on their website, I have to build in the tax into my rates including the cleaning fee based on Sonoma County TOT tax regulations.  When I receive the money from Airbnb my accounting systems backs out the TOT Tax and it is earmarked to be paid to the county every quarter. It’s a business expense for me just like paying my property taxes.  So I may lose that benefit.

My Airbnb listing shows my TOT Certificated Number, as required by the county, and I state in my property description that the TOT tax is included in the rate along with the rate itself.

If the tax is not paid on time there is a penalty.  If the tax is not paid at all you may get a lien notice on your property.  I called Airbnb on this and they could not answer my question.

In my opinion, it’s not up to Airbnb to get involved in paying peoples taxes. Let the county go after the people who are not in compliance with their vacation rental or other hosting rental methods. 

Just add a tax rate box to the website, Airbnb.

[Michael97]

Tony,

You are absolutly correct.  Airbnb should not inject themselves into the mix and just add a tax rate box like every other vacation rental site.  It's very easy and cheap to do, I have had several websites I know what the issues would be (none).

As you correctly pointed out if the taxes are late or not paid, we, the property owners are on the hook not Airbnb.  Airbnb does benefit by having the TOT included in the price charged the guest because that is what  Airbnb gets paid on (% of price charged to guest), so if we have to include TOT in our price that's more money for Airbnb.  A very sleazy business practice, in my opinion.

[Tony88]

Hi Michael,

This why Airbnb collects the Sonoma County TOT.

A few years back I went to a vacation rental owner’s community forum in Sonoma County hosted by the County Permit Resource & Management Dept. The county tax collection representative was there as well someone from the county’s sheriff department.

There were a lot of discussion topics.

In the handout I received at the meeting, the county performed an audit and reported that 50% of the people who advertise their vacation rentals in Sonoma County on Airbnb were operating without a permit at that time. Not only were they not in compliance, they were also getting away in paying the TOT.

As a result, Sonoma County put the pressure on Airbnb to collect the tax.

So, the ones that comply and follow the rules have to be inconvenienced by the people who don’t comply and follow the rules.

Just recently, I got an email from the Sonoma County Permit Resource Dept. that they will be collecting an annual fee of $216 starting this year for vacation rental enforcement & monitoring.

Tony