TRANSIENT OCCUPANCY TAX (TOT)

[Andrea4592]

Have any hosts out there come up with a good way to collect the TOT from guests? This is such a frustrating aspect of the Air BnB platform. And very misleading. I've attached images that state my listing is covered by the automatic TOT collection service offered by AirBnB. But when you dig deeper within the Local Taxes and Laws section you can see that the TOT collection is only offered in my county (Sonoma) for UNINCORPORATED properties. This seems so arbitrary and confusing. 

We are located in the heart of Wine Country, a major tourist destination and a hot spot for impeccable guest relations and services. AirBnB makes the suggestion that you collect this tax fee from guests separately through the resolution center after they have paid for their booking, OR collecting it in person. While trying to do this through the resolution center may be more effective, explaining this to guests after they have already paid thousands of dollars for lodging is not a very warm welcome. And the idea of collecting in person is absolutely preposterous! The whole point is that this is AIR bnb, which to us means it's a NO HOST situation. ESPECIALLY now during covid, what host is going to show up at the door of a vacation rental and ask to be paid the TOT in person?? That's crazy! 

Some other hosts suggest simply building the TOT into the base price. This does not work you guys! All that does is increase the total amount that you pay taxes on. It does nothing to help COVER the taxes. You still pay out of pocket if you do not collect the taxes from your guest. 

[Emiel1]

@Andrea4592 

In my part of the world Airbnb provides option to collect various taxes via the platform.

They are calculated at time of booking.

For some reason they do not offer this feature in the US.

Maybe that should be the question to ask at Airbnb....

[Andrea4592]

Thanks! I'll attempt to address that with them. 

[Julie-and-Brad2]

I’m surprised there are not more replies to this inquiry.  Our rental is in the Lake Tahoe area and we have the same issue.  Despite being very upfront on our listing about having to collect the tax after guests check in through the resolution center, it is inevitably awkward to request after our guests have paid so much.  I have decided to try to build it into the cost and go that route to alleviate my stress over the situation.  

[Brian2036]

@Andrea4592 

I thought Airbnb was strongly opposed to hosts levying any kind of cash fees or surcharges on guests.

 I never heard of “TOT” and I’m grateful for that but I suppose eventually we will have to get something like that too.

 I guess I would put a notice on my listing in a place where it can’t be missed telling guests that they will have the privilege of donating an XX.X% TOT levy to the great state of California.

They should pay this through the resolution center immediately after booking. If you let them wait you may have trouble collecting.

If they cancel you will have to refund them somehow. 

[Matthias366]

I may have found a solution to this problem.  If you’re a host who has provided your relevant tourist tax registration info, you may be eligible to collect taxes directly from guests by using the professional hosting tools. With this feature, you can set the type of tax, the way you want to collect it (percentage per booking, fee per guest, fee per night, or fee per guest per night), and what you want to collect it on (nightly price, fees, and other charges).

[Kathy1157]

Kathy1157

Wouldn't the TOT be similar to property taxes? Maybe I'm missing something but, unless we add the 10% TOT into the listing cost as an additional expense, on top of the Airbnb commission, cleaning fees and rental fee, we are not forwarding this cost to our guest, but it becomes an added expense for the host as a cost of doing business, much like paying property taxes is an added cost of owning a property.  Most hosts don't charge linen fees, etc as an added cost, but we could with the TOT fees. Just my thoughts. 

[Jennifer3712]

I've just started to have to pay 12% TOT in Sacramento starting May 2024 so I paid it out of pocket for May and June. Isn't it odd to tell a guest, oh yeah so can you now pay me 12% in TOT taxes? How do you inform them/disclose this tax?  Does it affect your reviews? Do they decline your request? I only rent a room in my home so I feel like I if I add a 12% fee it may hurt my business so do I just suck it up and pay?  Any advise/help would be appreciated. Thanks! 

[Joan2709]

Hi @Jennifer3712 

As @Matthias366 mentioned, most Hosts who are in areas where Airbnb does not collect a required tax, add that tax as a custom tax to their listings. The tax will be collected as part of the total booking amount and remitted to the Host as part of their payout. No need to collect it through the resolution center after booking from the guest.

The Host then remits that amount to the proper taxing authority. There is no need for a Host to pay a tax out of their own pocket. The taxing authority in your location has made the decision to charge this tax. It most likely applies to all short term lodging including hotels. I believe you have to turn on Pro Tools in your account first. Then:

Go to Listing Editor

Click preferences icon

Click Taxes

Add Custom Tax

[Jennifer3712]

Unfortunately I don't have that option because airbnb does not collect the taxes for me in my area.  It gives a note that it may but doesn't give the option to collect it.  Why can't they just collet it for everybody?

[Jennifer3712]

oh wait....you said turn on pro tools. stand by. 

[Joan2709]

Using Pro Tools (turn on Pro Tools in your Account Settings):

https://www.airbnb.com/help/article/2499

Go to Your Account

Click Professional Hosting Tools

[Jennifer3712]

Just got of the phone with airbnb. She said that they do not collect taxes and that I have to pay taxes like everybody else. I'm calling the city tomorrow to discuss the situation and why Rancho Cordova does not coordinate with airbnb to have them collect TOT taxes. 

[Joan2709]

@Jennifer3712 

That's a good idea. Most taxing authorities would prefer to receive tax revenue from Airbnb in a lump sum rather than collect from individuals. 

In the mean time, were you able to turn on Pro tools and setup the Custom Tax on your account? At least that will make it easier to collect it as part of the booking process not after the fact via the resolution center.

I suggest to the Hosts I provide consulting services for, keep their own spreadsheet of every reservation including the reservation number, number of guests, number of nights, guest phone number and all fees and taxes. You may need this come tax time.

[Jennifer3712]

OMG! Thank you! I was able to turn on the hosting tools and then the option to add a tax appeared! With the help of the city I was able to add all the info to set up the TOT tax.  Man, why didn't anybody send any communications or instructions about this? Thank you to people like you in these forums!