I host two units of a duplex in SC where the state occupancy tax is 7%. There is also a local tax of 3%, but the locality has no agreement with the state or Airbnb, so I have to file with them myself. The normal system is that you send in the form that you sent to the state and use that to calculate what you owe them. They have access to the state database so they can compare the number.
Here are three problems:
1) AirBnb over collects. They collect 8% on one unit and 9% on the second unit. And sporadically collect an extra quarter of a percent.
2) I can't get a copy of the information Airbnb sends to the state so I have to recreate the information, and hope I get it right.
3) There is no easy way to download what the guest pays and what Airbnb collects in taxes. You can download what you get, but to get what I need I have to look up each transaction individually. So I download what I can and then fill in extra columns, for about 40 transactions a quarter.
4) When I have Airbnb charge an extra 3% for the local tax it takes 3% of what I get, not what the guest pays, so I am undercollecting.
I pointed this out to them in a communication. They sent it to some special group. I have not had any kind of resolution.
I won't be the one to do it, but if they are overcharging on taxes, there eventually will be a lawsuit. They really need to fix that before it bites them.
