NM State Tax

[Rindy0]

Hi this is my first post I sure hope someone can help me.  I own and manage a small group of condos in Red River NM.  The last year I pay city and state lodgers tax each month.  Since July 2019 air bnb has started to take out a portion of the total [state tax 8.625% City 5 %] tax.  I called NM state to find out how I submit what air bnb pays so I can figure what I owe, they told me I needed to upload a TS 122 or a non tax certificate. Air bnb support has no idea what those are they keep sending me to Taos Tax info.  Is there anyone who can save my sanity???

Robin

[Donald-and-Frank0]

Good luck, RindyO, neither platform has a clue with NM taxes. It took me six weeks to get vrbo to collect the correct tax for an unincorporated locale in Santa Fe County but Abb has not managed to do it in over three months!

First, I would suggest you use this map to drill down to your exact location and determine what your GRT rate should be. http://tax.newmexico.gov/gross-receipts-tax-historic-rates.aspx

You should also check what the rates are every six months. They can change Jan-Jun and Jul to Dec.

Abb may be wrong. They're collecting over 10% on my location when it should be 7.125%

If you haven't already done so, you need to check with your town and county to find out if there's any Occupancy Tax due. You will have to collect this yourself as the platforms are only collecting state mandated sales tax, or GRT in NM. There is no longer an "other" tax rate field so you either have to send your bookings a bill for the extra tax (our county OT is 4%, that can be a big surprise especially when guest pay vrbo around 10% fee plus sales tax) or absorb it. We raised our rate a couple of dollars so we are paying about 45% and guests pay 55% of the County tax.

I've never heard mention of a TS 122 and don't see how a non-tax certificate would be appropriate. When I file my fourth quarter CRS report, I will have to pay for the tax for one guest that vrbo collected from (and paid me). I have no idea what flags are going to go up when I have taxes due of say 200 and I only pay 35. The platforms are not accounting for where the tax money is coming from, they are just sending a lump sum. I have no idea how NM is going to figure out if they've gotten all the money they should.

It's a mess and hosts should be screaming bloody murder but all I've seen is one or two threads. Crazy when you are liable.

[Laura4078]

You can get the "other" or "new tax" button back by becoming a Professional Host (designed for those with multiple listings, but it worked for me with one; took a few days to propagate and show up on my Taxes tab).  Then they will collect the new tax (for most of us, a Lodgers Tax), pass it on to us, and we'll submit to the appropriate city/county authority.

The TS-22 Agreement to Collect and Pay Over Taxes form may be defunct; the current CRS filers packet says marketplace sellers should fill out a "ACD-31101 Agreement to Collect and Pay Over Taxes to the Department"--either this is a replacement, or it's specifically designed for marketplace sellers like us.  BUT, no sign of that form on the T&R website, and the phone number listed on the CRS filers packet has so far been unsuccessful for me (multiple messages left).

And yes, they're collecting an odd amount of taxes for "rest of county" in Santa Fe area.  a bit over 8%; actually looks like a typo of the city rate to me (collecting 8.0439+/-; city rate is 8.439).  But hey, no skin off our nose; it's costing our guests a bit more, but we can still file our CRS forms with our proper revenue/deductions (since they're being paid by AirBnB), and zero due from us. 

BUT in lieu of figuring out the ACD-31101 or an NTTC (which some T&R folks say is an option), be sure to keep copies of AirBnB's accounting for each CRS period, to show what they paid for you! (and that their total revenue matches what you reported)

This Gross Receipts stuff is still new for AirBnB and NM; this is the first reporting date for most since AirBnB started collecting for us.  I'm sure they'll figure it out eventually....