Tax Collection Issue - Airbnb Support Keeps Closing My Cases Without Helping

[Robert6597]

I have opened countless cases, I have had several hour-long calls, I have provided all sorts of weird information (GPS location of my units, spreadsheet with highlighted issues with taxes,  Tax district details, etc.) requested by Airbnb support and they have not helped me at all.

They keep closing my case, when I respond they tell me it was closed and have to open a new case. I ask for a supervisor and they tell me they will be in touch - no one calls. This has been going on for about 4 months. The agents say the same things, act like they will help, and then close my case without any assistance being provided.

The incorrect tax amounts are being collected, I have the amount set to 5.1% but different amounts get collected that do not add up. I have no idea what to do in this situation as there is no way to correct it as it is correct on my end, no agents will assist me, no supervisors will contact me, and I have no path forward.

[Joan2709]

Hi @Robert6597 

Whew...frustrating.  Looks like both your listings are in Columbus, OH? Seems like Airbnb is trying to verify your legal address(es) to determine what taxes should be collected (asking for GPS info). You would normally be required to collect sales tax (state & local) on every reservation and any applicable lodging/transient occupancy taxes required. This is all lumped together on each reservation as "Occupancy Taxes". Airbnb collects the taxes automatically for most taxing authorities, but not all. I will say that 5.1% total taxes seems a bit low for most taxes on Airbnb reservations in the U.S.

Verify What Taxes Are Being Collected

First, check on your listing to see what taxes are being collected. Go to Policies and Rules and scroll to the bottom; Taxes. This will show you which taxing authority they are collecting for (they don't show the percentages though):

Verify What Taxes Should Be Collected

Then verify with your taxing authorities (state/local) what taxes you should be collecting; sales tax and occupancy taxes. If there is a tax that your are required to pay, but Airbnb does not collect it, you would have to add a custom tax to your listing. I believe you need to turn on Pro Tools to have access to custom tax collection?

To calculate if taxes on reservations are correct, you will have to look at a reservation under "Occupancy taxes" and breakdown the percentages. Most Hosts keep a spreadsheet and breakdown the percentages on each reservation in case it's needed at tax time:

Example -

Hypothetical Airbnb Reservation Tax Breakdown

How to Calculate 

State Sales Tax - 6.5%

County Sales Tax - 2.1%

County Lodging Tax - 2%

Let us know here how it goes as it might help other Hosts in the same situation.

[Robert6597]

My primary concern here is the required Lodging Tax in Columbus, which is 5.1%. The amount being collected for this tax is incorrect on nearly every transaction even though the amount is correctly set up in my Airbnb account.

I would love to have someone at Airbnb help with this but that has yet to happen.