Occupancy Tax - not set up yet?

Alex598
Level 2
Provincetown, MA

Occupancy Tax - not set up yet?

The state of Massachusetts and my local town have added occupancy taxes for bookings that take place this year. My understanding is that Airbnb will allow me to add a line item for this fee but only if they have it under their "Local Law" section. Since this just took effect, they have not put the option for me to add the occumpancy tax (Which is 14.25%). Is there a way to contact Airbnb to get it listed as an option or do I need to try and add this tax myself through my booking rate?

18 Replies 18

Christine144
Level 2
Massachusetts, United States

Airbnb knew this was coming they should’ve gotten their **bleep** together a long time ago. It’s going to cost us money they should reduce our service fee in the meantime for their screwup

The way I understand the Massachusetts short term rental law with respect to the taxes and collection and distribution to the state and local authorities basically is that Airbnb is required to collect the tax  and distribute to these authorities. However, in the case of Airbnb, they are unwilling to even collect the taxes! Airbnb gave me options, the first being to ask the guest for a cash payment when they arrive at the property! Really? That's not going to happen. In the guests eyes that is an unsavory way to conduct business and I can only imagine what their reviews would be like. Next is to ask for tax money after they have booked (through the resolution center) huh?, there has to be a problem if you have to go to the resoultion center, duh. Thats almost as bad as hitting your guests up for cash when they are on vacation! The third option is rolling the tax cost into the per diem rate. This is a headache for hosts. Not only is whole thing is unfair but my guess is that it is illegal. 

HomeAway at least will collect the taxes and hand them over to you. They have a button you push to do that. I was on the phone with the Airbnb service rep and he was sympathetic but was was doing what he was told. 

I have spoken with my state rep about this and he said that they may comply but there will be a fee for the paperwork. Ok by me. The problem here is that Airbnb is not following the law and people like you and me are paying the price. Aren't there penalties for this behavior? If we miss our tax payments we get the shaft plus interest!

I intend to contact the Attorney General's officeand hopefully shake things up a bit. Maybe someone has already. I'll keep you posted.

 and Hi Everyone, I don't know if this is something that you can get your State revenue department to do but this is how South Dakota handles Occupancy and Transient taxes.

 

All fees charged for a vacation rental (under 27 night stay) be it cleaning, pet fee, rent, etc., is charged the same rate of 6%.  Airbnb collects the tax and remits it directly to the State.  On my report all I do is report Airbnb income as non-taxable income.

 

Easy......

 

Maybe you can talk your revenue departments into handling the taxes the same way.

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