Nashville Taxes

[Jim16]

Hey guys,

I don't see a "Nashville" community option, so I was hoping maybe this could be answered generally.....

Is there a way to add "hotel" and other state taxes that we get charged for hosting on Airbnb to our guests?...I know we can simply add it to the overall fee...but is it possible to show a breakdown of those fees, so the guest understands why we have to charge it?

Sorry if this is "dumb" question, and previously answered 🙂

Cheers,

Jim

[Clare0]

@Jim16 Nope, not a dumb question at all! Just finished answering the very same question for a host in Colorado.  Have you read this Airbnb help link?

https://www.airbnb.com/help/article/654/what-is-occupancy-tax--do-i-need-to-collect-or-pay-it

If you have decided to incorporate the "hotel" / "sales" tax, also comonly referred to as Occupancy Tax, into your nightly price there is currently no way to have it itemized on the guest's receipt.  The only suggestion I would have for you is to say in your listing description that the nightly price you charge includes x% for your state and/ or count occupancy tax.  

I'm sure at some point Airbnb will develop a way for us to itemize the occupancy tax since more and more local governments are now requiring this payment, but until then we'll just have to do the best we can.  Hope this helps.

[Kate55]

I agree! Airbnb really needs to develop a way to itemize the occupancy tax + sales tax. It's a very time consuming to do monthly accounting required by the hotel tax and really anti hosting. C'mon Airbnb!

[Lee48]

I 100% agree. I use another home booking company alongside AirBnB and that company makes it easy. You just tell them how much tax you're required to collect (15.625% for Nashville) and they add it to the bill for the guest. It's itemized for both the guest and you so everybody knows who gets what.

Furthermore, while AirBnB tells you that you should inform of the guest about the taxes before they book, there's no way to do that if they use the instant booking feature. Then you have the uncomfortable situation of saying "Oh, BTW - there's this 15.625% tax I need to collect - how'd you like to pay it?"

This seems like a no-brainer for responsible home hosts (i.e. those obeying the law and paying their taxes). It's time for AirBnB to step up.

Regards, Lee

[Holley0]

Hello, everyone in Nashville Tn.

Is anyone charging the hotel tax, I now see that Air bnb is collecting it for us, if we choose so.

That great they will send it in.

However, I don't see anyone charging the Tax.

Any comments going forward for all us hosts ?

It makes it will hard, some charging and most are not.

The tax department, rules. Its dam risky not.

If we all charged sure would be good for everyone.

comments?

[Richard-Carson0]

As a five-year superhost, I would not be able to cope without the help of a company named Avalara. They set up everything with the city for a reasonable fee, and then I report to them my gross each month, they subtract what the tax will be, then figure all taxes on that final amount. After the initial set up fee, they charge me $17 a month. I literally couldn't do this without them.

[Marisa126]

Going to look into this, Richard Carson! Making sure to mention you referred me! 

[Georgia88]

Hi Richard, I'm trying to make sure I'm not doing something wrong here. I've been just taking the net amt each month airbnb tells me I made, using the form from the metro site which calculates things for me, then paying that amount. Am I missing some calculation that is making things hard for everyone, and therefore maybe paying too much?  Thanks for your thought. Where does the subtraction of tax come in?

[Patrick-and-Janet0]

Hi. We opened in August. We got the STRP and the process wasn't bad. The man at codes was helpful and friendly. Last week I signed us up for the Metro Tax. 6%. Went to Howard School (call ahead) and a guy there walked me through it and helped me catch up Aug and Sept. I'm JUST starting to add the tax. Included this information right up front on my listing. We're closing in on enough revenue to have to collect the 9.25% state sales tax. I'd be DELIGHTED to have AirBnb collect and disburse for us. Didn't think Nashville, Tennessee had that option. Can you tell me more? 

[Jana79]

so It appears that as of March 1 Airbnb is collecting and submitting the taxes for us? But when I look it doesn't appear that they are collecting the entire amount? Dont we have to pay sales tax on the Cleaning fee as well? It is all so confusing. 

[Georgia88]

"Owners will continue to remit Hotel Occupancy Tax to our office monthly as always." That's the answer I got from Metro.  So we still have to submit that via the form online. The weird thing to me is the form looks the same it's just "Occupancy tax" on top section and "Additional occupancy tax" on the bottom half. Still a percentage and then a 2.50/night charge.  Am I doing this wrong and paying too much here?

[Catherine1089]

just opened in July- I just paid my 1st ever HOP tax - the form is self explanatory, tho not well worded, The tax due is 6 percent on gross - which appears to be the room price and the cleaning fee -  as well as the additional 2.50 per rented nite.  (bummer.)

I find nothing about sales tax anywhere and was told ( but have not seen in writing) that AIRBNB now handles the sales tax for us ? anyone have a concrete answer for the sales tax?

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@Georgia88 wrote:

"Owners will continue to remit Hotel Occupancy Tax to our office monthly as always." That's the answer I got from Metro.  So we still have to submit that via the form online. The weird thing to me is the form looks the same it's just "Occupancy tax" on top section and "Additional occupancy tax" on the bottom half. Still a percentage and then a 2.50/night charge.  Am I doing this wrong and paying too much here?

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[Robert1477]

It is true that Airbnb collects TN sales tax and distributes it to the local government.

As hosts, we are still responsible for submitting hotel occupancy taxes each month. I don't think there's a way to do it online. I print copies of the necessary form (there's a link to download a pdf) from this page:

https://www.nashville.gov/Finance/Office-of-the-Treasurer/Collections/Hotel-Occupancy-Privilege-Tax....

I set up a spreadsheet to do the calculations for me, but it's easy enough to do with a calculator too.

Before Airbnb starting collecting sales tax, I used to charge the guests separately for both taxes on top of what they paid to Airbnb. After they started collecting sales tax, I chose to up my prices a little instead to cover the occupancy tax, because it seemed a little sleazy sounding for the guests to have to pay two lots of taxes.

Rob.

[Topher0]

Hey Rob,  Yes, Airbnb collects and remits TN sales tax all across the state of TN.  If your lisitng is in a county with additional taxs (Ex, Davidson County's Hotel Occupancy Tax) then you are responsible for remitting those.

[Elizabeth1828]

Hello hosts, I have a question. I was looking at booking a stay for a work trip, and the host is saying they  need to collect and remit taxes separately, so we will be billed separately. is this common practice for Nashville hosts? I've rented all over the US and Europe and have never encountered this before. Any help would be appreciated!