Occupancy Tax

[Kim210]

How do I find out what has been collected for occcupancy tax and whether or not it has been submitted on my behalf?

[Linda108]

@RobinAndMike1  If you look at your transaction history for the period of reporting the tax, you will see the tax amount collected and paid. It is my experience that Air BNB collects and remits the tax during the month the reservation was made.  Most occupancy tax is due during the time period of the check in, not the booking.

[Ellen12]

Tax is actually due for month of check out date, not check in. 

Call Texas Revenue Dept. What they will most likely tell you is ABB made arrangement with state to submit in lump sum and not tied to your specific rental. Agree, it's scary. But I finally got over it....

[RobinAndMike1]

@Linda108 and @Ellen12 thanks so much for your replies. Yeah, I have found that "just trust that it's getting done for you" is a very bad way to do business. There's no indication on any of the transaction history pages that the amount has been paid to anyone but Airbnb, and the state still expects me to do quarterly returns. I've already been dinged this quarter because I did not file before the deadline last week. I'll call the state, absolutely, but more assurances and proof from Airbnb that this is being handled properly is also required.

[Ellen12]

@RobinAndMike1 I spent HOURS calling/emailing ABB CS about this back in the summer.  Then I called my state/county/city about it. After banging my head against the wall for awhile, I decided to take deep breaths and let it go.  ABB is no help.  But what I did find was that they were NOT collecting city taxes (5%) as stated on their website.  So we had to eat some $ there and pay it ourselves. I see that's it being collected, and the state assured me they were remitting each month in one lump sum. I feel like I've done my due diligence, and we will continue to remit to our city as rentals occur.  Most of our rentals come from VRBO, so still collecting and remitting state/county/city there.  If  your only income is from ABB and you don't fine for a month, that could raise a red flag.  So, I think a good idea to to remit monthly/quarterly and show -0- income. 

[RobinAndMike1]

I would like to follow up on this for the benefit of everyone in the thread. I spoke with the Texas State Comptrollers office, where I send my State of Texas taxes that are now being collected by Airbnb. I was advised by the Comptrollers office to close my state hotel taxation permit, since I am no longer on the hook for state hotel tax. As it is, I am going to have to amend my 3rd Q report to show zeroes, and get a refund for taxes I have already paid to avoid late fees. As I amend the 3rd Q report, I'll check the little box that says to close the account.

Anyway, that's the deal in Texas - if Airbnb is paying your state hotel taxes, you don't need to file or pay them, and you should not submit a report to them. If you have been doing so, you should close your hotel tax account. But don't take my word for it completely - call the Texas State Comptrollers office at 1-800-252-8880 and verify.

[Steve397]

@Ellen12 It seems you have a rental in Gulf Shores as do I.  I just bought the unit and I am starting to get reservations.  AirBNB says they are collecting State/County/Municipal but Gulf Shores is telling me that they do not submit City Taxes.   I only have one completed stay and it looks like they only collected about 6% which would be the State and County and not the Gulf Shores tax of 5% by itself and going up to 7% on May 1, 2018.

Like you stated there are alot of rentals on ABB in Gulf Shores and I bet most don't know that they aren't collecting the tax like they say they are.

I have already taken several reservations for 2018 which I will have to eat the Gulf Shores tax.

[Ellen12]

Yes, it stinks.  Their website still says they collect municipal BUT THEY DON'T as you know.  We ate a couple $100 last year when we realized they weren't really collecting Gulf Shores tax.  You can send renters a request for the additional $.  I did it once and found it to be a can of worms and not worth it.  The renter had a hard time figuring it out, we went back and forth, I had to call CS and I just said - enough!  I raised my rates just a bit to cover it.  

You're aware lodgings taxes are going up from 11% to 13% May 1?

And I'm sure there's a lot of people that aren't paying the city tax, but.... we have to sleep at night, right?

[Ellen12]

Sorry, Steve.  Yes of course you know taxes are going up!

[Steve397]

Right now I put a not in my "Other Things to Note"  the note below:

"AirBnB does not collect the Gulf Shores City tax that is currently 5% and will go up to 7% after May 1, 2018. After your request I will have to send you an updated quote which includes this tax as AirBnB does not a way to include it."

When someone sends me a request then I will add it in and send them a special offer.  It may cost me some rentals but if I add it to my rates it is a can of worms as well since the 7% increase would be taxed with the State and County tax that AirBNB does charge and also technciall Gulf Shores if they got technical would want you to pay 7% tax on the extra 7% you put in your rate to cover the Gulf Shore Tax. LOL

I have put in a CS request but from what I see from past posts this probably is not going to do me any good.

[Kristin47]

I would encourage everyone that has rental property in Gulf Shores to contact Airbnb regarding this local tax that they are not collecting.  After a very frustrating discovery of this issue, we need to speak loudly as hosts and request that Airbnb STOP remitting any tax on our behalf and allow us to do it all.  It's confusing that they only collect for some and not all taxes.  Its difficult to collect the GS local tax when someone books having to either send a special rate or request after the fact through the resolution center or just eat the cost ourselves.  If you're like us, we have our rental listed on other sites as well and those sites do not remit any taxes for us, we must do it ourselves.  Please send a suggestion to Airbnb to stop remitting taxes.  

[Steve397]

I don't think this is going to happen since they worked it out with Orange Beach.  AirBNB doesn't really see it as a problem since the problem is on us.   I think they will eventually get it worked out with GS to collect and remit the GS tax but GS does not want to agree to hold AirBNB harmless for any back taxes.

[Maggie287]

Robin and Mike,

How did you make out with that?  I'm on the fence on whether to make my listing live because of the tax handling on this site.  Very recently VRBO has changed to be the same way so it seems to be the industry standard to screw the hosts.  But without inventory of housing where would they be with nothing for the renters?  I am an accountant and I know the state will still want a return filed until you close the account.  In the end we are responsible for the tax being paid and I don't want to be holding the bag.

Maggie

[Kelly-And-Mallory0]

Hi community! On a relatatable topic - can anyone recommend a great tax person who is fully versed in getting the most benefit from AirBnB during tax time? I’m finding so many struggle with this because it’s still “new” to them. Thanks!

[Ellen12]

You should find a local accountant/CPA in your area.  I'm a retired accountant.  Hope you've kept good records!  We find that using Quicken is the best way to track the income/expenses.  We were using it anway and just created the new accounts.  Good luck!

[Denese0]

We live in CA in a county where Airbnb does not yet manage occupancy tax collection. I spoke with Airbnb and they told me NOT to add it to my nightly price because it automatically increases what the collection payout would be. They told me I should collect the amount through their Resolution Center. I think that is ridiculous- not to mention a pain and likely confusing to guests who may feel they are being lied to!

I also don't really want my nightly price to go up 10% because a.) it is less competitive with other hosts in our area whose city has not demanded occupancy tax and b.)  Airbnb will collect their cut on top of the taxed amount.

ANYONE have any ideas or proof of a better way??

Thank you, Denese