ATTN ALL AIRBNB HOSTS re: Gross Receipts Tax and Lodgers Tax!

Wendy187
Level 4
Taos, NM

ATTN ALL AIRBNB HOSTS re: Gross Receipts Tax and Lodgers Tax!

ATTN ALL AIRBNB HOSTS! We need to contact our residing city and ask them to contact Airbnb directly and sign what's known as a Voluntary Collection Agreement for not only Lodger's tax but also Gross Receipts Tax.  In New Mexico, you're required to collect & pay both.  Gross Receipts Taxes must be paid monthly or at least every six months.  If they arrange this agreement with Airbnb, then Airbnb itself will collect and tax and pay it directly to the city on your behalf. No muss, no fuss!  Please ALL hosts that are in states that must collect Lodgers & Gross Receipts Tax --- contact city and airbnb to get this ball rolling ASAP so that hosts aren't paying these taxes out of pocket each booking.  Super Imperative we get this going now or hosts will lose out $ & possible penalties as well! 

40 Replies 40

Hi Wendy,

 

Trying to get clarification on how my city (Carlsbad) will know amount of payment for my Airbnb? There are currently 82 homes listed here and I want to ensure that the City gets the correct amount since I have to fill a form out and send it in each month.

Is Airbnb now collecting GRT as well? I have been paying each month and do not want to double pay.

 

Thanks for any info 🙂

 

Renee ****

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Robin46
Level 2
Taos, NM

Wendy, this whole thing is new to me. 

 

1) I'm in unincorporated Taos County with only 1 BR on Airbnb.  I understand from reading the lodgers tax ordinance that because I'm only offering one BR in unincorporated Taos County that neither me nor my guests owe lodgers tax.

 

Is that correct?   If so, how do I get Airbnb to stop charging it?  They keep telling to change my address but them my map is wrong and it then shows my home in Seco.  Grrr.

 

2) Also, as you or someone else mentioned, Airbnb doesnt seem to understand that my.postal code does not dictate my GRT tax code which I believe is 20020. I obtained the code from a realtor.  

How do I get Airbnb to change the code they're using for GRT?   Theyre using a code for a much higher rate than I owe. 

 

3)  I knew nothing about a permit.  Could you please tell me where to go to get a permit, please?

 

Thank you!

 

R

 

 

Hi Robin, 

to answer question 1: if you are receiving Airbnb income from any space even if it’s zero bedrooms, you still certainly owe gross receipts Yax. For sure without question. 
to answer question 2, I need to know your zip code of where the dwelling resides that you rent in taos county. It should start with 875...  if it’s 87571 then it’s 8.5% gross receipts tax that you owe. 

 

lastly, you will need to go to the town of taos building (same one as to pay a water bill on Placitas) , obtain a crs ID at the window then go in the back office of planning Dept to fill out application for short term rentals. This is mandatory now because all Airbnb listings without permit are easily visible to them. I saw it myself in their office on their software to look up all earnings etc of anyone without permits in taos county. So best to do this ASAP. 

Burt13
Level 1
Roswell, NM

Hi @Wendy187-  You have a very informative thread and was hoping to pick your brain. I am in Roswell and just recently received a letter from the city requiring that I register as a business and pay a lodgers tax to "equal the playing field for local hotels." They're requiring building, fire, and parking inspections before a permit can be required. They're requiring a remittance at the end of each month .- I was looking at bookings and Airbnb already incorporates lodgers/occupancy tax and GRT on the guests end from what I can see.   What would you recommend in this case? 


Burt

Hi Burt, I would contact your town's planning dept to see if they have struck a deal with airbnb at any point to where airbnb remits GRT on hosts' behalf.  I know santa fe and taos have struck these agreements with airbnb but not sure about other cities and towns with NM.  Hope that helps! 

Mimi207
Level 2
Tucumcari, NM

I also appreciate Wendy's input. My tax person says I need some sort of documentation showing that airbnb is in fact paying my gross receipts taxes. I have not been able to obtain anything from them to that effect. Also, I see that they charge lodging tax, which I don't owe as I am 20 miles out of town, though I share the same zip code as Tucumcari. I'd like to be sure the gr taxes are paid, one way or the other, and not double paid either. Do you know where in our hosting account we can find what gr taxes they pay?

Hi there, I would suggest contact your town's Planning Dept to see if they have struck a deal with airbnb at any point to where airbnb remits GRT on hosts' behalf.  I know santa fe and taos have struck these agreements with airbnb but not sure about other cities and towns with NM.  It's a town-by-town or city-by-city basis whether they have this set up with airbnb.  Hope that helps!  

Mimi207
Level 2
Tucumcari, NM

So I just got off the phone with airbnb support, again. In fact she hung up on me although I was very nice, just frustrated. Still cannot get a yes or no as to the payment of Gross Receipt Taxes. My question was escalated to higher support, but could not get a reply from them either. They keep confusing exercise tax with gross receipts tax. Here is a link to a page I was directed to:

https://www.airbnb.com/help/article/2318/occupancy-tax-collection-and-remittance-by-airbnb-in-new-me... where it clearly states they are charging guests GR tax, and that it would show on the payment breakdown. Well, it doesn’t. Nobody I’ve spoken to seems to know or who to contact within Airbnb. I have to go on the assumption that the email we all received in 2019 stating that they would be paying our gross receipts tax from then on, was incorrect, as is the statement in the link above. I see no alternative other than to pay back taxes with penalties and go back to paying our gross receipts taxes ourselves. If anyone has any other suggestions I’m all ears. I love working with airbnb, their support has always been fantastic, but this is one issue they really need to clear up.

Yes Airbnb associates are often confused with Lodgers tax and Gross Receipts tax.  Since many states do not even deal with Gross Receipts / Service Taxes, they are not properly informed of the states that have this additional tax like New Mexico.  I would contact your town's planning dept to see if they have struck a deal with airbnb where airbnb would remit GRT directly to the town on hosts' behalf.  I know santa fe and taos have struck these agreements with airbnb but not sure about other cities and towns with NM.  Hope that helps! 

Wendy, thank you, I'll do that. So local planning department, not the  NM Taxation and Rev. department then? In addition, we're 25 miles out of town and are not required to pay lodging tax which airbnb does charge the customers. I just wish they would fix or clarify the issue. Two docs that say they pay gross receipts tax in NM, and both wrong, apparently... and nobody to speak to who knows anything about it.  Also, in my town, Tucumcari, I believe there is only two other airbnb besides myself. I'll post here what I find.

Cheers, and thank you again for your insight!

Mimi

Jessica2849
Level 1
Cloudcroft, NM

Hi,

 

Do you have a specific place that indicates how AirBnB pays the state of New Mexico for the Gross Receipts tax?  I have them charge it and need to make sure that are remitting it.