Ulster County + NY State tax collection

[Joanna961]

Hi folks wondering if anyone else has figured out what to do here… 

Since March, Airbnb is now collecting two different taxes: supposedly County (4%) and State (8%). However the earnings report doesn’t separate this out - it gives you one “Airbnb remitted tax” figure. 

My calculations are showing that about 10% tax has been collected - not 12% overall which would cover the full County and State amount. However: no one from Airbnb or Ulster County can seem to tell me where the shortfall is so I don’t know whether I need to write a check for the county occupancy tax reporting. 

Has anyone else had a similar issue or figured out how to resolve? 

thanks 

[Rebecca]

Hi @Joanna961 👋

It's been a little while since you posted and I wanted to say that I'm sorry that you're experiencing these issues. Speaking directly to Airbnb Support is the best way to get this resolved. Have you hear from the support team since you posted? 

Looking forward to hearing an update from you, 
Rebecca 

[Joan2709 · Accepted solution]

@Joanna961 

Keep in mind that sales tax is usually applied to the total amount the guest paid, including the service fee.

Occupancy Tax (Hotel Tax) is usually only applied to the nightly rate (not including service fee). Varies by state.

Here is the breakdown for your listing for a typical 3 night stay. It does appear Airbnb is calculating it correctly:

NY Sales Tax: 4%

Ulster Sales Tax: 4%

Ulster Hotel Tax: 4%

Apply total of 8% sales tax (Ulster & State) x the total the guest paid (including service fee)

Guest Paid $1,263.51 x 8%=$101.08

Apply 4% Hotel Tax to only the nightly rate: 

Guest Paid $1,107.20 x 4%=$44.28 (round up to $44.29)

Total Taxes Paid: $145.37 - The taxes collected by Airbnb are correct

[Joanna961]

@Joan2709 Hi both - thanks so much. I have received an email from support but it still doesn’t explain the difference. 

Joan - appreciate the response and calculation! What you’re showing is correct, however I dug a little deeper on my side too at the booking level and I have about 5 bookings that are only showing 4% tax collected, with the remainder showing 12-13% which is the total for state and county. 

I’ve sent these booking IDs to support as I can’t understand why some only have 4% occupancy tax assigned. If you have any other ideas I’m open to them - thanks!

[Joan2709]

@Joanna961 

If I had to guess, I would bet the reservations without the correct taxes withheld were for your first few bookings? Most likely Airbnb was collecting the State Sales Tax 4% and had not added the Ulster Sales Tax and Occupancy tax yet. This would mean that although it should have been collected from guests, it wasn't. Unfortunately, you are still responsible for ensuring taxes are collected and paid and would still owe the taxes on those reservations to Ulster County. 

Airbnb makes it clear that Hosts are ultimately responsible for taxes (even if they weren't collecting them as they should have). Ulster County will also hold you as property owner responsible, not Airbnb. That said, Airbnb pays taxes in a lump sum and does not identify each individual Host. It would be very difficult to identify who has paid and who hasn't. 

[Joanna961]

Thanks Joan! Super useful info. 

Weirdly enough it’s sporadic rather than the first few bookings which is really odd! Support have said they are looking into it again for me. 

[Morgan974]

Thank you so much for this!!