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
Nick179
Level 2
Ojo Caliente, NM

I am new to AIRBNB and keep getting different information regarding the groos receipts tax. I was not aware of the lodgers tax. Who do we need to contact to try to get AIRBNB to collect those for us and who do I need to contact in regards to lodgers tax. I also live in New Mexico. Any feedback would greatly be appreciated.

Hi Nick, So for Santa Fe and Taos, all LODGERS TAX is collected from the guest and then airbnb directly pays to the city so we don't have to deal with Lodgers tax at all.  HOWEVER, Gross Receipts is NOT yet done this way.  Gross Receipts tax is required tax in every town and county in New Mexico and the rates change according to what city or county your business resides in.  Usually with any business in NM, we are required to charge the gross receipts tax and then semi-annually have to file/ pay the gross receipts tax.  Unfortunately there's no where currently within the airbnb charges to charge this service tax, so we as hosts are having to pay out of pocket instead of just collecting it from the guest. 

We have a SERIOUS problem in Taos.

Airbnb has been collecting 5% lodgers tas from all Taos rentals since October 2016.

I have gone round and round with them since then.

The rpoblem is this:  the Town of Taos and Taos COunty have different rules on which types of rentals the lodger's tax applies to.  NM law says any listing with "less than three rooms" is exempt from lodgers tax.  The Town of Taos says any "room" is a room for taxation purposes.  Taos County says only BEDROOMS count as rooms for taxation purposes.

My listing has one bedroom, but two rooms (a bedroom and livingroom area).  

I am located outside of Town of Taos limits.

I even got a letter from the Taos COunty manager stating that my space does NOT qualify for being charged lodger's tax.

Airbnb has, and still is, charging lodger's tax.

After going round and round, submitting maps, plat maps, town limits maps, space diagrams, etc., Airbnb's final response was that becuse my town and zip code say Taso, NM 87571, that means I am in the Town of Taos.

It does not.

There are many humndreds of residences in the postal code of "Taos" which are NOT within town limits, and if less than 3 bedrooms, are therefore not subject to odger's tax.

As my accountant pointed out, if Airbnb thinks that all residences located in "Taos, NM 87571" are located within the Town of Taos, they are thereby collecting and remitting taxes from many County residents to the Town.  Different governments.  

Its a racket and fraud.

I've lost SO many bookings because of the added charges.  And its fraudulent.  To think:  a major corporation beleives that tax applicability depends on postal zip code is absurd.  Airbnb needs to examine the town/county line maps for ALL listings subject to lodgers tax and see if they are collecting and remitting properly.

Im my case, they are NOT.

And they absolutely refuse to listen and respond in a logical, legal manner.

So, over the past 1.5yrs, my guests have been charged many hundreds of dollars in lodgers tax improperly (fraudulently) and Airbnb has, it appears, remitted thse collected amounts to the WRONG ENTITY - to the Town of Taos (which I am not in) instead of Taos County.  

I suspect the same may be happening in Santa Fe, NM - if the City of Santa Fe has a lodgers tax ordinance, and Santa Fe County does as well, and those ordinances are interpreted/applied differently (as in the case of Town of Taos/ Taos COunty), then ore fraud is being perpetrated by Airbnb.

Oh - also, Taos Couty says it began collecting lodgers tax from Airbnb in late summer 2017.

Airbnb says its began collecting lodgers tax from guests in Oct 2016.

So did Airbnb simply keep the lodgers tax amounts collected between Oct 2016 and summer 2017?

Where did that $ go?

Our Couty is run by people with no higher education, so they do not understand the basics of taxation and accounting.  They do not understand that they, and thier residents, are being ripped off by Airbnb.

Airbnb is committing tremendous fraud in Taos County, and against me and my guests.

I've simply rented the space long-term (not using airbnb) because the improperly-imposed lodger's tax makes the listing less attractive to guests.

Oh - and of course, on top of that, I have to pay Gross Reciepts Tax (sales tax).  My business is a corporation and Airbnb STILL sends me a 1099.  Ridiculous.  There is increasing evidence that Airbnb is a scam, just out for $$ and unconcerned with the actual people who use it - hosts who want to provide a lovely local experience, and guests who want to connect more with the "local flavor."

Its very sad and very frustrating.

Hi,

 

Airbnb has collected the Lodgers Tax but my tax office in Santa Fe says they did not receive any of it and Airbnb says they have no documentation and instructed me to just talk to my local tax office. Has anyone else had a problem with Airbnb collecting the Lodgers Tax but not paying it to you or the city?

 

JH

Hi there,

yes I have noticed there is no place to charge the tenent gross receipts tax  and I end up having to pay out of pocket, 

any advice on this?

 

Albuquerque property

Airbnb will collect and pay Lodgers Taxes for many locations.  They are not set up to collect Gross Receipts Taxes (Sales Taxes).

 

Alessandra225
Level 2
México D.F., Mexico

Amen. In mexico city its the same way. As owners we still have to pay 16% VAT and its totally a hastle and a nightmare for our users!

Rebecca54
Level 2
Pecos, NM

yikes.... are you paying gross receipts on your Airbnb rental? I hadn't known about this.

Yes anyone with income in NM has to pay gross receipts tax... currently as of july 2017, it's 8.5% which definitely adds up especially if we are unable to collect it from our guests like lodgers tax operates 😞 

Easiest solution is to increase your net price by 8.5%, ABB does not have a tax line.

David

So NM Gross receipts tax is  paid on the total received from Airbnb and then when we file taxes we file a schedule C to expense our cleaner.  This is what NM Taxation told me on the phone.    Is this correct?   

The tax rates vary in the state you can get into nm taxation and put in your zip code and find your tax rate. I’m outside Albuquerque and mine is only 6.4% it’s very confusing. This is my first year trying to do this right 

Yes Rebecca we have to pay gross receipts tax on our own twice a year (July 1 and Jan 1). In order to pay your grt you must get a crs # generated from town hall where you also get your permit alllication filled out. Then you’ll be legit bc all towns can use the handy software now to look you up if you have any online listing. 

Rebecca160
Level 10
Albuquerque, NM

@Wendy187  I am glad to see that this thread was started. I live in Albuquerque, where Airbnb started collecting Lodger's tax last Fall. Airbnb clearly states that they will not colect NMGRT. Not sure why this is. It would be awesome if they would collect the money, pay us and then we pay our city. I can see that it would be a nightmare to collect NMGRT and pay it individually for each host. As it is, the city treats all Airbnb reservations as coming under one entity (Airbnb) and pays a lump sum to the city based on rentals.

 

There has been a law on the tax book of NM since the mid 1970's that requires all short term (less than 30 day) rentals to be taxed by NMGRT. If you have a roommate or rental of more than 30 days, it is not taxable. Annoying and weird.

 

I include the tax in my price on Airbnb and then back out the tax to pay to the city on a semi-annual basis. So, far, I have had no issues with the city about it.