When Air BNB collects and remits occupancy tax, @Mary834, you are notified of the amount of tax charged to the guest. However, as this is not income to you, you do not declare for income tax purposes. Air BNB remits the tax in a lump sum to the taxing authority so there is no individual host information given to that agency. My city contracted with Air BNB to collect and remit the occupancy tax and then found out about the lack of individual host identification for the city. Because of that, the city cancelled the contract.
It appears that the Air BNB CS reps are not well informed about this process. If you need confirmation that the state is accepting the lump sum payment, you should contact the state for that information. While my city was contracted, hosts still had to submit monthly reports to advise income from the rental but indicate Air BNB paid it. Hope this is helpful for what you need. Linda
Hi Amy,
I understand that you want a document from us stating how much tax was paid on your behalf. Unfortunately, Airbnb does not offer any type of letterhead communication regarding monetary earnings or financial reporting outside of the U.S. Year-End statements.
We collect occupancy taxes automatically, and at the same rate for every single host in your area. No host has the option to opt-out, and therefore your local tax office can be certain that every single one of your reservations has had occupancy tax collected and remitted for every booking accepted on or after February 1, 2018.
You can always refer to the Gross Earnings section of your Transaction History for a reservation by reservation breakdown of amounts that have been remitted on your behalf. Taxes that have been remitted on your behalf cannot be returned to you.”
So do they just pay them all at the end of the year because we are supposed to pay quarterly and I get penalized if I don’t.
Beyond frustrated and confused!
amy