Tax Remittance

Geri201
Level 2
Santa Fe, NM

Tax Remittance

We have not yet gone live with our listing and I'm trying to confirm how the GRT and lodging taxes are calculated in some of the current local listings. It appears that a new change that our city made in May 2021 requires a lodging tax be applied for all lengths of stays and I'm finding that this new charge is not showing up on current airbnb listings. It got me to researching how/what  exactly AIRBNB is collecting on hosts' behalf, which lead me to this forum. I see that many hosts are finding that tax entities are coming to them for payment of taxes that were collected by Airbnb.  I would like to know if anyone is collecting their own GRT and lodging taxes directly from guests? And if so, how are they doing it? Thanks very much.

1 Reply 1

Since 2014 I have been informing guests that I collect the lodging tax directly. I send them a pre-booking e-mail confirming the accommodations (like the tub is on the ground floor, but the shower is on the second floor) and tell them about the tax with this e-mail.  I tell the the rate and the dollar.  I ask for their personal e-mail and I send them a payment link through paypal.  I've had only 2 guests question this.  All have paid.  This tax supports my local county travel and visitors bureau, which benefits my business. 

 

I do not add it to the room rate because state law requires taxes to be listed separately.  To do so makes it look like income to me and increases my income tax and it increases the cut that goes to AirBnB.  It just seems unfair to layer fees on top of taxes. 

 

I would like to switch to "Send or Receive Money", but I don't see anything on how that works.  This function was not available in 2014 when I first posted my listing.