Here is what I wrote to AirBnB
From: Harborside Apartments <hidden>
Date: Sun, Sep 17, 2017 at 5:17 PM
Subject: Re: Airbnb: Airbnb Customer Support
To: Airbnb Customer Service <response at airbnb com>
Hi, Giulia,
I have three AirBnB listings in Maine:
- The Feathered Nest on Peaks Island (Peaks cottage)
- Intown 1br apt with harbor views (Belfast apt)
- 1.5 br convenient comfy urban digs (Portland condo)
I have always collected the 9% Maine tax on short term lodging (shorter than 28 days), filed returns and paid the taxes - quarterly for Peaks, semi-annually for Belfast, and annually for Portland.
In 2017 AirBnB announced that it would be collecting and remitting occupancy taxes as of April 1, 2017. Attached is an annotated Excel spreadsheet I made from transactions I downloaded from AirBnB. I have a number of concerns, as follows:
1. Uncollected Taxes of $976.95
Relying on AirBnB's announcement, as of April 1, 2017 I stopped collecting tax from my guests, as I certainly do not want them charged twice! It wasn't until I filed my 2nd quarter return that I noticed AirBnB had collected the tax inconsistently - for less than half the 2nd quarter bookings! - with no discernible rhyme nor reason. For example, how could I explain to [Guest #2] and [Guest #3] that [Guest #1] paid $77 less than they did?
Uncollected taxes total $524.34 for the 2nd quarter, which I have paid, and $452.61 for the 3rd quarter to date, which I will have to pay by October 15. It does not seem fair for me to be penalized for AirBnB's failure to collect the taxes. At the same time, it would look really bad for both me as a host and for AirBnB if I go back to the guests to collect these taxes! It would be better if AirBnB would reimburse me, and that is what I am asking for.
Collection does seem to have improved. The most recent lapse was August 11. Maine says that in the future I can get off the hook for filing all together if I sign a form saying all of the rental taxes are collected and paid by AirBnB. However, based on this track record I am not sure I trust that to happen.
2. Taxes Collected in Error $341
AirBnB charged $341 occupancy taxes on [Guest #4]'s 60-day rental in Portland (#[HIDDEN]). The Maine tax has an exception for a person who stays 28 days or more if they don't have another primary residence. Ms. [Guest] was moving back to Maine and needed a base from which to hunt for permanent housing (per her email of April 18). In such cases Maine law specifies that the tax she paid must be refunded. The transaction summary does not reflect such a refund. Even though she canceled after the first month, I don't see that taxes for the second month were refunded; be that as it may, the entire $341 in taxes should be refunded, as she stayed longer than 28 days.
3. Taxes Collected but Not Credited $751 (or $410 if [Guest 4] is refunded)
I have been stuck paying the entire tax due, even when AirBnB has collected the funds from guests, because the State of Maine has no record linking any AirBnB payments to my properties. I believe them because AirBnB never asked me for my State tax id#s. AirBnB should reimburse those funds to me.
- For the Peaks cottage, on my 2nd quarter return (4/1/2017 - 6/30/2017), I reported all of the income, but submitted only the taxes I had collected. I reported that AirBnB had paid $273. However, the State of Maine billed me for that amount, plus interest, and was planning to place a lien on my property as of September 15! Discharging that will entail additional charges, no doubt. I'll try to get them to hold off by paying the bill tomorrow. Will
AirBnB send that $273 to me?
- For the Belfast apartment, with my return for the 1st half year (1/1/2017 - 6/30/2017), I paid the entire amount due to Maine, despite the $72 collected by AirBnB. It's not worth
risking a lien for th at amount. Unless AirBnB can apply the $72 it collected to my account with State of Maine, it should reimburse me the $72.
- For the Portland condo, AirBnB is holding $65 collected from guests.
N o return will be filed until the end of 2017. I trust that by then this will be resolved.
Similarly, going forward, when and how will the taxes AirBnB has collected from my guests ($508 in 3rd quarter) be credited to the State's accounts for my properties?
I will appreciate your meticulous attention to these issues, and your answers to each of the questions I ask.
Hey Allison,
My name is Nariko from Airbnb Customer Service Experience. I apologize for the delay in response to your tax questions and I would be more than happy to address your concern.
It appears that we are automatically collecting Occupancy Taxes for your jurisdiction.
Guests who book Airbnb listings that are located in the State of Maine will pay the following taxes as part of their reservation:
Maine State Sales Tax: 9% of the listing price including any cleaning fee for all reservations. For detailed information, visit the Maine Revenue Services’ website.
Just so you are aware, we file one tax return per jurisdiction with the total combined reservation revenue. This means that all hosts will be represented by one remitted amount, and we will not be providing your personal information on the return.
Hosts may then view the amount of occupancy tax paid by their guests by visiting the the Gross Earnings section of the Transaction History.
For your records, you may confirm the total taxes collected by going to your Account > Transaction History > Gross Earnings > Occupancy Taxes.
Taxes will only appear here once the reservation payout occurs. When you click "Export CSV", this will generate an organized spreadsheet of your earning summary and the amount of taxes collected for each reservation that you can print out and submit for your proof of tax collection and remittance.
Thank you so much for your cooperation and patience. I hope this information finds you well.
Best Regards,
Nariko