Occupancy Tax Collection Help

[Brian-And-Dierdre0]

I'm a new host and a bit confused on how AirBNB will record the required taxes in for my Truckee, CA house.  I've been unable to list out the taxes for guests in the additional prices section so  have two questions.

1.  Am I forced to use the Special Offer feature to provide guests with accurate information on the local taxes or is there a way to use the Instant Book feature?

2. Will my payout records from AirBNB call out the taxes in the cost breakdown for my tax return?  TOT in Truckee is applied to both the nightly rate and the cleaning fee per local laws.

Thank for any help, AirBNB software should hande this for hosts since it's law

Brian

[Scott80]

Since Truckee is not one of the California cities that AirBnB collects taxes for (source:https://www.airbnb.com/help/article/653/in-what-areas-is-occupancy-tax-collection-and-remittance-by-... ) . You have a couple of options: include the taxes in the daily rate and calculate the taxes due based on the gross collected from the guest by AirBnB and remit the taxes due to the taxation authorities (this is the option that I do). Or you can collect the taxes directly from the guest after they have booked. You can either collect it in-person from the guest or you can calculate it and submit it as a "special offer"  and remit the amounts collected. (source: https://www.airbnb.com/help/article/654/what-is-occupancy-tax--do-i-need-to-collect-or-pay-it ) Of course, you are required to disclose whether or not taxes are included and how they are being collected. I put my disclosure in the "other things to note" section of the detailed description.  "All taxes are included in the published daily rate. The unit is owned by SMD LLC, General Excise and Transient Accommodation Tax number: W(PHONE NUMBER HIDDEN)" For some reason, AirBnB redacts the Tax ID number, but I leave it in there because I feel affirmatively stating that information gives the listing more credibility.

The payout records will not do the calculation for you. You can view your gross revenue to make the calculation yourself, though. The amounts paid by guests in under dashboard>account>gross earnings. 

[Louis27]

If you include it in your daily rate, or as a Special Offer, you will be paying Airbnb a commission on the tax. Not a good idea. I make it very clear in my listing that ABB does not collect taxes in my area (Hawaii). I state in "The Space" and "Other Things to note" that they have an option to pay cash on arrival or through the ABB Resolution Center. After they book I send them a message thanking them, giving the amount of tax and asking how they want to pay. So far no complaints. To send a bill through the Resolution Center, click on "Your Reservations" in the gray task bar at the top. Locate the reservation and click on "Report a Problem" on the right. It will guide you through the simple process of sending a bill for the amount of tax. I don't know why ABB doesn't list this as an option. Perhaps it's too easy and they want hosts to add it to their daily rate so they can get a commission on the tax. I learned this through another host. Hope it helps.

[Susan297]

Interesting.  I too have to collect local tax for my city, Airbnb will collect for the state.  Been wondering the best way to do it.  Adding it to nightly rate then means we are taxed by the feds for that as our "income" and it really isn't.  Seems like an easy fix to me that they just add a tax section where we put cleaning fees, security deposit, etc.  Give us a spot to add a percentage for tax (above what they collect and remit for certain states/areas) or the total tax where they don't collect, and then it would show up in the total cost to the guest.  Without having to go through all these machinations or have it be a part of our income.  When you do it the way you described does it show up as part of your income earned or is it separate somewhere?

[Linda213]

thank you, thank you for the very good info -  I really did not want to pay AIRBB additional % or the IRS. Total Sense!

[Valerie286]

Thanks for this advice, Louis. I do the same as you and haven't had any issues or complaints until just recently. I feel that because Airbnb has started collecting the TOT taxes in other areas, that guests are starting to get caught off guard by my methods. I have been to some Truckee Town Hall meetings on the topic as well as a Chamber of Commerce breakfast with an Airbnb rep as a speaker and Airbnb states that the reason that they donot collect the tax is due to the 2% TBID that Truckee has. Over a year ago, they were said to be working it out, but I have not heard anything...have you?

[Ms--C-L-H0]

AIRBNB has created a real mess with this collection and created more work for the host. Either I leave the price as is and they get a "cut" on the taxes as well, or I have to bill my guests after the fact, what a headache. To add to the aggrevation, I pay for MYLODGETAX to calculate and collect what I owe from my private bookings, Airbnb and Flipkey, now I have to pay them $20 more to handle this new situation with Airbnb.  Thanks AIRBNB for making a real mess of things. You may have solved YOUR problem with the government on your back, but you have made it more complicated for your hosts.

Does any body there at Airbnb even look at these complaints? You have grown too big and I don't think you can keep up, or are you completely losing it?  Sad, I have liked the company, don't like the way it is going.

[Linda213]

I totally agree - it makes things awkward for hosts. All AIRBB ha to do is add a line item and be done with it. pisses me off. 

[Ms--C-L-H0]

Since I posted my complaint, they have not bothered to reply, I am beginning to see them in the same light as VRBO and Tripadvisor, both huge businesses that have little time for the paying clients.   I emailed back and forth with the tax paying service "MyLodgeTax" on how to handle this, finally I got a definite answer, they were good to persist and help me figure it out. I pay $8 month for their service, they report the state/city tax and pay it quarterly. 

Here is their definitive answer from them: "I  reviewed your assigned tax rate. AirBnB collects and remits all of the tax returns for revenue collected from bookings on their system. ....You do not have to report any revenue collected on AirBnB to us, however, you must report revenue from all other sources since we will be filing that on your normal quarterly Colorado Tax Returns." 

CONCLUSION: Airbnb collects and submits what is earned through them, I have to subtract that from what I earn from other sources for my rental and report that quarterly.. WHAT A HEADACHE! At least Airbnb keeps a running tab of what I earn through them. I check this when I am making my quarterly payment and so as not to pay twice. I am not a good bookkeeper...Having the MyLodgeTax service was meant to help me keep track and submit what I owe.

Airbnb should give us the OPTION of collection or not, not FORCE us to use their collection service.  I detest this kind of "control" when all I want is a place where I can advertise my rental.  This new policy is out of place and should not be obligatory.

I WOULD LIKE A RESPONSE FROM AIRBNB. Fat chance.

"

[Valerie286]

Agreed. I did just use the feedback option and wonder if that will do any good if they receive a ton of complaints on the matter.

[Alicia242]

Ugh !!!Pisses me off and now all of MA too! The city of Salem MA and state just added the lodging tax to airbnb hosts and all STR platforms !!!!

[Matthew324]

I was testing the Tahoe Donner area with our cabin to see if there was enough demand and had a short term renter that came in over Christmas. Sure enough, I received the letter from the town of Truckee within 5 days of the renter leaving. I knew I had 30 days to register and remit but boy are they on it!

I did figure out a clever way to include the TOT certificate number in my listing to show compliance. I replaced the zeros with capital O's and AirBNB posted the number successfully on the listing. So anybody seeing it would understand I was registered with the Town of Truckee and have a valid TOT certificate. 

I guess the computer scans from Host Compliance may not understand the difference between zeros and O's but that's their problem!