Airbnb Occupancy Taxes and Sales & Use Taxes - Are they actually paying them

Timothy481
Level 2
Annapolis, MD

Airbnb Occupancy Taxes and Sales & Use Taxes - Are they actually paying them

I'm a new host in Annapolis, Maryland in the United States. I wanted to see if anyone could help provide some info on taxes as airbnb's articles are very vague and unhelpful.

 

I have determined that in my jurisdiction I need to pay 7% Occupancy Tax to the City of Annapolis and 6% Sales & Use Tax to the State of Maryland. Airbnb does appear to automatically collect these with my bookings and does not pay them out to me. What I'm trying to figure out is Airbnb actually paying these correctly and in the required time per the jurisdiction. I have spoken to Airbnb and there is no notification system to the host about when they are paying them, how much at each time period, and what information they are providing to the jurisdiction when they do pay them. Airbnb basically has said "don't worry they will get paid automatically and it will be correct. If you are worried you can call the jurisdiction and confirm they received the payment."

 

Does anyone have experience with this and are they calling their jurisdiction to confirm they aren't delinquent on taxes and airbnb is doing everything correctly? Also if you have multiple airbnbs are they doing a good job of splitting up the payments by address?

 

For the state owed sales tax I had to apply for a business sales & use tax number that Airbnb doesn't have a place to submit. Technically this number should be tied to my social security number. Does anyone have experience with this? Has airbnb done a good job with submitting owed taxes?

 

Overall, it seems like Airbnb got their wrist slapped from hosts not paying the taxes they owe so now they are withholding the money and are required by the jurisdiction to pay directly. But airbnb shares no information with the hosts on how they are making these payments or notification of payment when the host is the one that has everything to lose for taxes not being paid.

4 Replies 4
Lorna170
Level 10
Swannanoa, NC

@Timothy481   There is no report or system in place to verify that AirBnB is paying your taxes.  What my accountant recommended was that I file a zero dollars owed return each required reporting period with the accompanying document that AirBnB has collected and paid the taxes.  My state tax office concurred with this process.  Speak to your local tax office or tax accountant. 

Thank you, that is helpful. I was thinking about filing $0 as an option.

I am in Annapolis Maryland and I am wondering the same thing. 

Bhumika
Community Manager
Community Manager
Toronto, Canada

Hey @Kimberly955 ,

You can also take a look at Local Host Clubs near you to connect with hosts, who might be able to help you with area-specific tax information.
 
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