Massachusetts TAX EXEMPTION???

[Susan241]

AIRBNB Customer Service is useless. 

Their explanation of taxes is more useless 

can anyone give a short, and accurate answer to my question. 

I rent a room, max 2 people, July and August. I live in the house and serve breakfast.  

Will AIRBNB take taxes from my rate?

if they do and I’m exempt from taxes ...how do I tell them not to?

Thank you!

[Susan151]

@Susan241 . I have asked the same question on one of the other boards. Sloppy work here...... there should be a setting in the listing to select what kind of listing, as defined by the statute, we are offering.

[Alicia242]

@Susan241 @Susan151 Exactly according to the MA DOR   We are actually allowed to rent up to three rooms ( I have just one)in the house that we live in we are exempt if we serve breakfast ( what constitutes breakfast I guess we can decide that but according to The DOR we are considered a B&B “home” not a B&B establishment

our guests are exempt from paying the city and state accommodation or occupancy tax!!!  So Airbnb needs to be made aware of this !!! I just got off the phone w a cust serv rep and he was saying well Airbnb is to collect the occupancy tax from all hosts in the State well not if we are exempt!!! Also, I was told last week from a cust serv guy at the DOR that apparently there is a drop down tab where we can state we are a B&B home ( I havent looked at that yet) Did you ladies see a drop down feature that lists private room in a home incl breakfast)with under 3 rooms listed. Shouldnt the DOR tell airbnb this on our behalf...UGH

[Susan151]

---

@Alicia242 wrote:

@Susan241 @Susan151 Also, I was told last week from a cust serv guy at the DOR that apparently there is a drop down tab where we can state we are a B&B home ( I havent looked at that yet) Did you ladies see a drop down feature that lists private room in a home incl breakfast)with under 3 rooms listed. Shouldnt the DOR tell airbnb this on our behalf...UGH

---

If you find this tab, will you post a screen shot? It isn't on my listing yet [that I can find.]

[Alicia242]

I firmly beleive that this is a fair exemption. We are not taking housing off the market. Hosts that list just a room in their home they live in should be able to have their guests exempt of this added occupancy tax!

[Alicia242]

@Susan241 @Susan151 Yes! I will if I find one ...Did you already register with the DOR? Why does this all have to be so complicated? it seems like it would be so easy to do this!

[Alicia242]

@Susan241 @Susan151  Let me clarify the drop down tab is supposed to be on the DOR registration page. But what good is it being exempt if they don’t communicate this to Airbnb?!

[Theda1]

I’m in the same situation. A B&B Home, not an Establishment. I let 2 rooms, owner occupied, provide breakfast and take advance reservations.  My guests should be exempted. Yesterday, I received the automated message that ABB will collect these taxes from my guest beginning July 1. I actually advertised “No Hotel Tax,” and I’m booked til October. I opened a support case and have not heard from anyone.  Has anyone been given an answer on this exemption?

[Pat338]

I'll just keep asking on one of these threads, there's an answer somewhere, I hope.   

I am a fully licensed, inspected, insured, ServSafe certified Bed and Breakfast home for going on 9 yrs.  Recently started listing on Airbnb only because I was losing many customers to the platform.  Yes, we are exempt see Tech Info Release TIR 19-3.  I have talked to Airbnb customer support who knows nothing... and I too have opened a support case with no response.  They are beginning to collect tax from guests, yet when someone comes through my personal website, a walk-in, or phone reservation I don't collect tax.  Not fair to the guests coming through Airbnb who are already paying high service fees, and what's the tax man gonna think when some guests are taxed and others aren't.

[Molly168]

@Susan241 @Susan151 @Pat338 @Theda1 @John47 

Anyone get any resolution on this?  I too qualify as a B&B Home & my understanding of TIR 19-3 is that I don't have to register as an operator.  However, our guests are being charged 15% in taxes now (state and local). Where is that money going if we are exempt?!?  I called my town clerk's office and they didn't have a clue...referred me to the zoning office and they didn't have a clue.  I'm chasing my tail, trying to do the right thing (register, if necessary), but the way I read the regs, our B&B Home is exempt, yet with all the fees and taxes (about 30% altogether!), our rates have been jacked up to a point of "luxury" when our space is just "modest".

[Susan151]

@Molly168  I am waiting for the MA Dept of Revenue to get AirBNB to comply with the law. Eventually, I think this will happen, but you are right. The advantage that our lawmakers envisioned for those of us who are hosting in-home.

[John47]

@Molly168It's my understanding that a "B&B Home" only exempts you from the tax portion, and not the other portions of law.
It also appears that Airbnb has not yet made ANY provision for users to select if they are exempt via that provision OR subject to the special CIF that is specifically related to an individual listing.
I would contact Jennifer at DOR via desimonej@dor.state.ma.us with your issue as she may be able to 'entice' Airbnb into doing something.

[Molly168]

Thanks so much - all your posts have been very helpful.

[Susan241]

Same here.  No one knows Jack.  They are taking taxes out from guests and paying state. Something tells me there will b a class action suit when some shrewd lawyer figures it out. 

You do not have to register if you make under 20,000 or no more than 200 rentals.  I think.  

But this other tax thing no one knows anything about is supposedly if you live in a house with I believe 3 or less bedrooms.  Owner actually lives there and you serve breakfast. It’s not fair to the guest.  I’m getting complaints about my rates which never go down ...only up. Because they are getting so much extra they have to pay. Several want to do business outside of AIRBNB but I definitely won’t do that. 

[John47]

@Susan241 

There's NO reference to those 20,000/200 numbers ANYWHERE in the law! The ONLY place I've seen any possible reference to that is in regards to Federal tax/IRS, NOT MA DOR, ok?
And it's not how many bedrooms you have but how many you rent out, which is limited to 3.