Airbnb collecting incorrect tax rate

Airbnb collecting incorrect tax rate

I live well outside the town limits in my area so therefore we do not pay the local city taxes. My tax rate is 9.5%, which includes 6.5% state, 2% tourism, 1% county. Airbnb also is charging and remitting on my behalf, and they are incorrectly adding in  2% city tax. I've contacted them to let them know I do not live in the city limits and my customers should not be charged that local city tax but they will not listen to me and will not change it. Recently, homeaway is also collecting and remitting on my behalf, and over charging by adding in the city tax of 2% and will not change it. Their reasoning is that my address says "Jasper" therefore I must pay local city taxes. I tried to explain to them that this is a remote area and I'm 13 miles away from the town limits. Anyone else have this trouble? I don't like my customers paying 11.5% taxes when it's the incorrect rate.

4 Replies 4
Nicole530
Level 2
Breckenridge, CO

I am having the same issue.  We live outside the Town of Breckenridge limits, although we have a Breckenridge address.  Our guests should not be paying the Town of Breckenridge taxes. 

Have you had any success with Airbnb changing the tax collection process?    

Thanks,

Nicole

I am having the same issue. One property they changed immediately. Two others, they have not. This has amounted to thousands of dollars they are keeping on my guests behalf. I call or email once a week and they still aren't doing anything. 

 

Jeff574
Level 2
Breckenridge, CO

Same here...also in Breckenridge, CO. VERY frustrated with the lack of resolution. I've supplied Airbnb with everything I've been asked for to validate the property's location and still nothing.

 

Andy559
Level 1
Laguna Beach, CA

I’m having the same issue.  My listing is outside Scottsdale jurisdiction but have a Scottsdale address.  I gave Airbnb the documentation they wanted to remove the Scottsdale TOT and they said it would be resolved within 3 weeks and to contact them again in 30 days if I didn’t hear back.  30 days later there was no reply so I asked for an update.  They asked for the documentation again, so I resent the original documents.  Now they say it will take the engineers 18 to 24 months to make the change.  My stepfather is a lawyer and says it’s illegal for a city to collect tax that is not zoned for that collection.  Airbnb is now knowingly aiding and abetting this illegal activity.  I wonder how many properties are getting taxed incorrectly?  Airbnb can’t assume every property resides within city limits.  When it gets flagged, it should be resolved within a reasonable time frame.  18 to 24 months is not reasonable.