Transient Occupancy tax

[Curt8]

This website is confusing. We have to collect a 12% Transient Occupancy Tax from any guests that stay 29 days or less. I can't find a place to add that fee. The only option is a cleaning fee. It says I have to send a "special offer". Why in the hell should I have to send a special offer to collect the tax? I have put it in the listing details that we have to charge and collect the tax for our city. However, in my experience with VRBO, most people don't read that and ask the question anyway, even though it is on a quote that is sent to them. And there is no place to contact Airbnb itself, to get an answer. 

[Linda108]

You are looking at a very old post in Air BNB years... 😄  Shortly after my city, La Quinta, CA, agreed for Air BNB to collect and remit occupancy taxes, the City cancelled the contract.  Air BNB processes the tax remittance as a lump sum without any identifying information linked to the responsible host.  LQ decided that they would not be able to audit the revenue collected so cancelled the agreement.   Now I just include the 10% tax in my nightly rate which works for me.  Some high end listings recognize that this method caused a substantial income loss as Air BNB collects the fee based on the nightly rate.

[Adrienne59]

There is a city council meeting on election day at 6:00 and the TOT is on the agenda.  We are requesting the council to rescind the retroactive TOT demand and to set up an account with Airbnb.  We need a 4 out of 6 majority vote to make this happen.  There is a meeting on Saturday at 3:00 at the Blackbird Cafe on Park Ave,  to get everyone on the same page as to how to prepare their two minute talk to the council, and to write every concil member ASAP.  Please come.

[Tararita0]

Hi,

I live in Chico. Do you know if any changes have been made by AIRBNB to collect and pay this tax as of 08/01/2019?

[Momi0]

@Curt8  @Louis27 @Meagan1 @Linda108 @Derek6 @Donna112

 I would like to offer up a GREAT solution that I use quite often.  Did you know that ABB allows hosts to use the Resolution Center to collect payment "FOR FREE" for other things such as:  (No more Pay Pal for me)  hahahaha

1.  Taxes

2.  Non related trip expenses

3. Transportation

4. Activites  (massages, yoga classes, etc)

I have used ALL of these categories to collect monies within the ABB system for taxes, airport pick up rides, surfing lessons that I book for my guests (yes I provide concierge services to all of my guests free of charge), extra breakfast for visiting relative, etc.  My guests  have been excited to get this reqeust as it takes 3 seconds for to set up, send and they just take one second to hit ACCEPT.  Their credit card has been charged, a record is now kept in the system, and they get bonus from their credit card company for using it I imagine. (I earn cash rewards on mine).  Its so simple and easy.

Today, I  taught 3 hosts around the world how to use it, including the host who booked my home tonight. (she was paying me for her surf lessons I booked) She had no idea that feature was available.  And no fees are taken from anyone for this service....WIN WIN. 

Here's how you do it.  Click on HELP tab.  Scroll to the bottom, Click on Resolution Center, which takes you to an option marked....REQUEST MONEY or SEND MONEY.....you choose REQUEST....write a message out explaining why you are asking for this amount and within seconds the guests receives the notification, hits ACCEPT, and the host is paid 5-7 business days.  Most times, I get paid within 48 hours...before the guests has even arrived. Another guests sent me money through this feature because he really wanted to surprise his wife with beautiful Hawaiian leis, and I picked up the leis free of charge, but he covered the cost of the lei.  Thats one way I show my Aloha Spirit, because my Auntie who owns a flower shop doesn't charge me the ridiculous prices that the Honolulu airport does, so thats a  WIN WIN for my guests too. 

Hope that helps you all.  If it did, don't forget to give me THUMBS UP 🙂

[Louis27]

Thanks Momi,

This is very helpful. I don't know why ABB can't explain it the way you do. So easy!

Aloha,

Louis

[Momi0]

@Louis27   You are so welcome my fellow Kama'aina.  Glad I could help.  When you have a moment, be sure to give me a "thumbs up" on that helpful post so it appears for others to see in the future.  The button is located at the bottom of every post.  

FYI- we have a group of Hawaii hosts here on the Community Center.  IF you need any further help specifically with our state and Airbnb, that's another place you can post a question. I check it quite often.  Hope you are doing well....MELE KALIKIMAKA!

[Danika2]

As long as the guest knows in advance that you will be charging the tax against their deposit after they depart, then I guess this is one way to collect the it. Keep in mind that it must be done within 48 hours.

[Momi0]

@Danika2   

HI. Just saw your post from back in March and wanted to make sure its duly noted that taxes are NOT charged against a deposit whatsoever through Airbnb. That is not correct what you wrote. 

Be very careful about what you post as incorrect information like that can confuse other hosts, especially the new ones.  ABB does collect or take a security depost, nor do they collect taxes unless agreed upon with that particular city.  

What I wrote about is how hosts can use the resolution center to collect monies on guests services outside of their nightly rate and cleaning fees. (transportation, taxes, massage, yoga classes, dinners, extra food, activities, etc).  This can be collected anytime.

 I just had a guests check out 3 days ago (9/24/2017) and she needed help getting to the airport from another Airbnb she stayed at after our home.  She called me and I sent her an UBER driver to pick her up within 2 minutes.  Saved her money and she loved the service.  I sent her a request through Airbnb to get paid and sent her the UBER receipt through her ABB account too.

She wrote: " Momi, the Superhost service is still being provided and I am not even your guests anymore".  I wrote back:  "You are always my guests."  She quickly paid me back by clicking ACCEPT on her Airbnb account 2 mins after she got to the airport.  Fantastic feature on behalf of Airbnb in my eyes.  And the guests loved it! 

What you wrote about regarding 48 hours is perhaps about damages??  That policy has since changed ...its not 48 hours anymore.  

Host now have 14 days from the guests check out date to make a claim for damages or extra people, or late checkout.  That's completely different then from what I shared about in collecting monies on services, taxes, etc. 

Hope this helps you and other hosts to understand.  🙂

[Louis27]

I have been collecting tax through the Resolution Center for well over a year and it’s working just fine. About a month before the guest arrives I send a message asking if they have the directions and check in procedure and remind them that the tax is due before arrival. Then I send the request through the RC and all they have to do is approve it. Airbnb then charges it to their credit card. Works like a charm!

[Adrienne59]

Airbnb has informed me several times that they will not collect TOT via the resolution center until after the guest has checked in.  You say here that you remind your guests that the tax is due before arrival.  So, does Airbnb keep giving me erroneous information?

[Stephanie935]

Airbnb will not collect it for you here in Chico, i have asked  several times how to do it and they just say ask for it when they arive.  I'm not going  to do that upon arrival. so what i did was put a vase of some kind with a note explaining the tax and  leave it in the  jar.  that  has worked out great,  sometimes you get stiffed and sometimes you get more.  No one has

 complained.

[Linda108]

That is an innovative approach, @Stephanie935  but I fear that since collecting money outside the Air BNB system is against the Air BNB TOS you run the risk of having your listing suspended.  

Is there  huge downside to just adding the tax to your nightly rate? That is what I do and I publish that fact in my description.  Of course that means Air BNB fees are based on a slightly elevated nightly rate, but guests seem to appreciate the transparency of the nightly cost.

Just a thought.

[Stephanie935]

 No I don’t think you’re right Airbnb told me themselves that I needed to collect it on my own it’s different it’s not like I was running a room under the table also they told me to collect it at the door not through the website so you’re wrong about that at least that’s what I was told 

[Louis27]

Aloha Stephanie,

Transient Tax collection is a huge issue in Hawaii right now. If you add it to your nightly rate, you are paying tax on top of tax AND commission to Airbnb. I used to ask my guests to pay cash, but then sometimes I forgot and sometimes they forgot and I would have to ask for it. I felt awkward asking for it so I started using the Resolution Center to collect it. A keep a list of bookings, then about 30 days ahead of their arrival I send them a message saying the tax is now due. You go to the Resoultion Center and click "Request Money" for tax and the amount. Airbnb sends them an email that you have requested money and they click "OK" and Airbnb sends you the money no fees attached. Then check them off the list so you remember that they paid. It works great! But, you have to state about 10 times throughout your listing that the tax is not included in the initial booking. And be sure to put it under "House Rules" and "Other Things to Note" so they can't miss it. 

[David-and-Shari0]

Hi @Momi0, When woud be the best time to collect the taxes? Right after they book? Can I use the Resolution Center before they arrive at my house? Or do I have to wait until they are actually in my house? I hope it's still as easy as you say. I thought I had seen where they are no longer recommending to use the Resolution Center to collect taxes. I was going to use Zelle, which lots of banks now have. All they need is my e-mail to send me money from their account. And the app is easy for them to set up even if their bank doesn't use it. Same as cash in my book. Of course then they have my e-mail but it's a junk account I use anyway.