Occupancy taxes in my State (CT) - the 30-day rule

in
New York, NY
Level 2
280 Views

Hello all-

 

I am hosting people for multiple month stays.   The platforms (both major ones) take out 15% of the total rental fee for this tax.   My state law says the following:

 

"The tax rate is 15% (11% for bed and breakfast establishments) of the total payment received for occupancy of the room or rooms for up to 30 consecutive calendar days. Beginning on the 31st consecutive day of occupancy by the same person, the tax no longer applies."

 

It appears that the platforms are collecting excessive tax.  And, consequently, providing quotes with excessive taxes.  One of my last guests paid over $5000 (15% of the total rental fee) in occupancy taxes for a 90-day stay.   

 

This is a problem:

 

1.  It appears to contravene state law (Connecticut)

2. It makes my quotes appear with high/inflated taxes

3. There seems to be nobody at any of the platforms available to answer my question about this

 

Does anyone know what to do in this case?

 

 

 

3 Replies

Re: Occupancy taxes in my State (CT) - the 30-day rule

in
Gros Islet, Saint Lucia
Level 10

@Michael-and-Stacey0,

You may want to look for other platforms to host guests for long-term stays.  Airbnb is not the appropriate platform for long-term stays, and their systems do not have the flexibility to no collect tax. The reason why the tax is not applicable after the 31st day is because the guest's status converts into a tenant under the state's tenancy laws.  This means that you will have to go through eviction court to remove a tenant if they do not pay, do not leave as scheduled, cause damages, or are a public nuisance or danger. 

 

Also, Airbnb does not obtain a true security deposit.  If your space incurs damages or additional maintenance costs, you will have to submit the claim through Airbnb's Resolution Center, and the guest will have to agree to pay.  If they do not, you will have to convince Airbnb to find in your favor, and you may not get the amount that you've requested.

 

 

Re: Occupancy taxes in my State (CT) - the 30-day rule

in
New York, NY
Level 2

Thanks for your input.   I appreciate it 🙂    I most definitely do not rely on the airbnb security deposit.   

 

I hear what you say, but the state of affairs in the US is that there is a pandemic.  People are not renting short-term (in fact, its was made illegal in April only to resume in some states).   Airbnb should be able to have it within there capabilities to stay on top of local tax law and change a line of code or two.    

 

Let's be honest.  Airbnb is profiting mightily off of my hard work and diligence.  I can expect a little in return.

 

 

Re: Occupancy taxes in my State (CT) - the 30-day rule

in
NY, NY
Level 10

@Michael-and-Stacey0  That is crazy and wrong on many levels.

 

I don't know if it's available for Connecticut, but you might be able to switch off the automatic tax collection and collect taxes manually.  https://www.airbnb.com/help/article/2522/can-i-collect-occupancy-taxes-for-bookings

 

They say that you may be eligible using the professional hosting tools.  You can get those just by asking (you get them automatically with 6 or more listings).  https://www.airbnb.com/help/article/2499/how-can-i-use-professional-hosting-tools

 

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