Add Hotel Occupancy Tax line to Total Price

[CarlandDiane0]

Our town is about to require short-term rental (STR) hosts to collect a 9 percent hotel occupancy tax (HOT). Some citites cal it a lodging tax.

Because we live in a small town, Airbnb doesn't automaticallly collect HOT taxes and remit them to the local taxing authority. I get that; you can't provide that service everywhere you have hosts.

But at the very least, please add a line in our pricing settings that would allow us to include the HOT tax as part of the up-front total price that guests will be paying, and identify that amount as a tax.

The current options for doing this are terrible: either respond to every guest booking request with the unwelcome news that we'll be charging 9 percent more than what they thought they were paying and then ask them to accept a "Special Offer" for a higher amount, or handle the HOT tax transaction off the books with an in-person transaction, which utterly obliterates one of the key advantages of Airbnb as a reservation platform.

I realize I'll have to pass those dollars on to the city; that's my responsibility as a host and I'm fine with it. But if the tax amount is built into the platform, then we can avoid a lot of hassle with guests. (Honestly, if I sent a booking request to an Airbnb host and received a response saying they want 9 percent more "for taxes" and I can pay in person, I'd probably pass on that listing. This is just bad business.)

Seriously, guys. Is that THAT HARD to just add a line for occupancy tax percentages? You do it for extra guests and deposits. How about one more?

 At least one of your competitors, HomeAway, provides this option for hosts. It's mystifying to me why Airbnb doesn't.

[Susan325]

I'm in complete agreement with this post! Travelers are accustomed to paying lodging tax, but if you incorporate it into the Airbnb listing price (in my case 15.25% + $2.50 per night per room), it's difficult to stay competitive .

[LeAnn2]

Yes, please make this available to collect tax upon registration and the leave it up to the owner to pay the taxes.  Is this going to be a consideration and something that you will consider doing for your hosts?  Please let me know!

[CarlandDiane0]

Host Voice is a nice feature, and I imagine Airbnb customer support monitors the posts. But this does feel a bit like we're whistling into a deep well hoping to hear our echo back. There's never a response, even a standard "Thank you for your feedback" response. So you have no idea if this idea is getting any traction whatsoever.

Honestly, if I find collecting tax is a pain on Airbnb, I'll move to another platform. I can't imagine having to upcharge people after they've agreed to a price or asking them to cut me a check once they arrive. Either of those options are weak sauce. Please fix this, Airbnb.

[Solomon-and-Hayley0]

Amen, Amen. Amen it can't be that difficult - VRBO does it why can't AIRBNB?  

You must be more sophisicated that this?????

[Salvador10]

We are a hotel property that also does home rentals, in Sonoma county CA, we must collect the taxes upon arrival however we have guests that are either completely unaware of that fact or instead argue that they have already paid Air b&b,which they have not.  Sending a "Special offer " which is higher than the quoted rate seems like the quickest way to lose bookings.  Is there another way that this can be made more clear to potential renters?  Not only that but my county is not listed on thier list, AND how do you reach a live person at Aribnb
?

[CarlandDiane0]

@Salvador10 On another related thread, one poster suggested the following. He brings up a good point, since if we all just raise our rates by the tax percentage so we can then pass that money on to the taxing authority, Airbnb actually charges us a commission on the tax money we're collecting because to Airbnb, that extra sum isn't any different than the rates or extra fees we charge. But taking a piece of money we're collecting for taxes is wrong. And possibly illegal.  Which is probably one reason why HomeAway doesn't do that.

Here's the post. Some good stuff in here. And as for the live customer support number that really does exist but that Airbnb takes pains to hide, here ya go: 855-424-7262 (Just don't call them when you're pressed for time.)

"First, I'd recommend you identify your amount so the guest knows that there is an additional fee in your "rules" section.

After the reservation is booked, click on "report a problem" (it is badly named, but sends you to the resolution center).

You can then select to ask a guest for money, and select "additional services." You then send the amount and a message (this is x% for the locality tax). When the guest pays, there is no AirBNB deduction."

Good luck!

[Susan297]

This all seems very convoluted and difficult - seems like an easy fix for AirBnb - if they automatically can add the tax in areas where they collect and remit - then they should be able to add another line item for hosts to put the percent of tax to include in the total amount and then it just shows up for the guest in the total cost.  My other concern is if we are sending the tax amount in a "special offer" does it get "added" to our income and then we end up paying federal income tax on the taxes, or is it kept separate?  And like stated before, that it must be kept separate so the hosts are not paying the host fee on that total "cost".
Please respond to our concerns/questions Airbnb.   Susan

[CarlandDiane0]

@Susan297, you bring up all the key concerns. I hate the idea of just ballooning my rate to accommodate local taxes for the reasons you state. And the Special Offer suggestion is just weak, like something a child would think up. Airbnb can do better and it should. If it insists on funneling its hosts toward Instant Booking for business reasons, the least it can do is make a few changes so hosts can do a better job of operating as businesses. 

[Judith94]

I agree with all the sentiments here. This is an easy fix, and Airbnb just doesn't want to do it, probably because they WANT to charge fees on the tax. And becuase, if they make it easy to add tax, more hosts will add and pay tax, and then Airbnb will lose one element of its competetive advantage with hotels, which always have to pay the tax.

It is pretty sketchy, and very annoying for hosts that want to obey the law and pay their tax.

[Allison17]

I recently attended a short term committee meeting in my city and a city tax rep was present to speak regarding lodging and sales tax. As I understood it, one of the major hurdles for Airbnb and collecting/remitting the lodging tax on behalf of guests was the tax code. That has to change first. As with everything in government, there's a process that has to be followed. They aren't so nimble, and it will take about a year before everything is in order for Airbnb to collect and remit the lodging tax where I operate.

[Judith94]

THe tax problem acna be solved quickly in a way that does not require that Airbnb actually collect and remit the tax. That can remain the responsibility of the homeowner. Airbnb could add a line item for tax today. It would be treated just like the cleaning fee. A line item, different than the rent, that people have to pay to complete the booking. It is then up to the homeowner to remit the tax to the local authorities. This is not hard, and Airbnb pretending it is is just trying to delay because they know that if people start to collect tax, Airbnb becomes less of a deal relative to hotels, and they may lose market share. VRBO does this, and it does not take responsibility for the tax at all, and it makes no difference to VRBO what the rules of any particular jurisdiction are. It just provides a way for the homeowners to collect the tax. 

[Mariann6]

I would like voice my support for the tax line item. Our Airbnb is in Savannah, which charges a 6 percent tax in addition to the 7 percent state tax. That really hurts our bottom line. The current way Airbnb tells us to collect the tax is completely untenable and ridiculous as all we Airbnb hosts know. VRBO and HomeAway both do it, so there is no reason they can't do it. One simple tweak is all that is needed. Please help your hosts and do this!!

[Gary107]

I agree, vat is 11% in our area..It would be simple for airbnb to add a line for this...come on airbnb get it together!!!!