PLEASE consider adding Hotel Occupancy Tax line in Total Price

CarlandDiane0
Level 10
San Marcos, TX

PLEASE consider adding Hotel Occupancy Tax line in Total Price

Aside from the anxiety storm around making Instant Book a default search criteria in many areas (anxiety I also happen to share), my No. 1 issue is that Airbnb doesn't provide a way for hosts to provide a percentage amount for taxes they are required to collect and pay to their local or state taxing authority, and for that amount to be listed in the Total Price that guests see before they book.

 

When I check the "Under Consideration" list, I see nothing about taxes, yet there are plenty of posts in Host Voice and elswhere about this very issue.  This is a crucial issue, and as more local governments require short-term rentals to collect occupancy taxes from guests, it's gonna become even more crucial.

 

Airbnb's current suggestions for collecting taxes from guests are terrible. And if we simply request that guests pay taxes via a Special Offer or raise our prices to accommodate the taxes, then Airbnb earns a commission off that extra amount. This is a critical point: Airbnb ends up taking a piece of the money we're collecting from guests on behalf of state and local taxing authorities. That's not just unfair; it's possibly illegal.

 

Your competitors itemize taxes on the total price that guests see. Honestly, can it be that hard to add, Airbnb?

 

This would be a very welcome feature for hosts. I hope you take it...."Under Consideration."

11 Replies 11
Mary-Ann0
Level 10
Sun City, AZ

I completely agree!  I have to ask shorter term rentals (29 days or less) to pay the tax when they arrive with cash - then I have to give them a receipt.  It is very awkward but that is the only way I create paperwork to pay the tax the next month.

 
Laurie81
Level 1
Colorado, United States

Agree wholeheartedly! I have to collect GET and TAT taxes for our Hawaii rentals. A separate line item would seem to be a simple solution and I too wish this would happen.

KatieKayMead0
Host Advisory Board Member
Lake Arrowhead, CA

I cannot agree more. This is infuriating to me. No matter how many times I mention it in the listing, 25% of guests are surprised when their total goes up. I want to continue to be a legal business and pay taxes, but my reviews are suffering. 

Betty-and-Bernay0
Level 2
San Angelo, TX

I agree, Home away does add the taxes to their rentals why cant airbnb do the same.  Please see if this can be done

Christina144
Level 2
Phoenixville, PA

I have listed on VRBO for years with no issues and just signed up for Airbnb and its already a mess with not being able to collect taxes in a way that doesn't infuriate our renters.  And the fact that they get a service fee on any built in tax isn't right.  This needs to be changed!!!

Andrew313
Level 2
Hermosa Beach, CA

This topic needs an upvote. I understand registering and remitting tax for every city would take a lot of time. At least let hosts from those cities that aren't receiving that same kind of love to have the option to add it to their pricing. 

 

I find the host experience with AirBnB to be better than the competition mentioned above in every single aspect of the business except for local tax collection. That tax for cities that are now regulating and even considering banning STRs is such a pressing business problem, I'm shocked there hasn't been a simple feature roll out to address this.

 

Help hosts pay their cities to help keep short-term rentals legal.

Flora32
Level 2
Questa, NM

I have always included the tax in my total price (example: $113 for 6%state and 7%local tax).  Now Airbnb is collecting the state tax but not the local.  So if I build local tax into the $100 rate for a total of $107, Airbnb is actually charging tax on tax.  Yet, if I don't include it, then I have to back track and send a Special Offer that charges the guest more (not so special) or alter the reservation price after the fact - for every reservation; these two options were suggested to me by Airbnb. It completely negates instant book opportunities, and it doesn't simplify aything for hosts as Airbnb said it would.

Ken28
Level 10
Newburgh, IN

@Flora32, Wow! 13% tax? This is when I'm happy to live in Warrick County, Indiana. No occupancy taxes! 🙂

 

We also have no hotels... maybe that's why there's no tax (yet)?

Lia42
Level 2
Honolulu, HI

I have written to Airbnb about this issue in the past as well.  They need to add taxes as a line item and allow us to collect that amount.  In Hawaii, we must collect 14.962% for tax and that amount comes right out of the amount that we advertise on Airbnb. I do not feel comfortable asking guests to pay that amount on top of what they have already paid.  If we raised our prices, we would not be able to compete with the other hosts who may not be necessarily abiding by the laws by the laws and paying these taxes.

 

Airbnb...please ADD the line item and allow us to collect through Airbnb!

Flora32
Level 2
Questa, NM

In the past, my listed price included both the State and Local hotel occupancy tax (6% ST an 7% LO) at 13%.  I agree, Airbnb should provide a taxable amount line item.  Because of their change, I still include the 7% Local tax in my listed price because I still have to collect it on my own.  Airbnb is taxing upon tax because my listed price includes the tax.  Airbnb should A) provide at taxable amount line item B) Collect all of the required taxes or C) Let the host continue to collect all of the taxes. 

 

I don't think much thought went into the decision.  What was supposed to make things easier for hosts has actually made it all more confusing.