Arizona Taxes

[Brian149]

Hi all,

For the AZ hosts out there, can anyone comment on taxes that may be due to the State (and/or county/city in your area)?

With SB 1350 coming into effect at the start of the year I am confused if AirBnB is going to be collecting taxes and paying on behlaf of AZ hosts?

I have heard host technically are required to register for TPT tax and remit this tax but am confused about this.

Any comments are appreciated!

Thanks

[Molly29]

I would be interested in figuring this out too!

[Brian149]

Talked to State Revenue Department yesterday and was told that owners are responsible for collecting and remitting TPT tax to the state revenue dept which then remitts county and city taxes accordingly.

I am apprehensive to believe this official though. It was my understanding that one of the main points of the new law SB1350 was that sites like AirBnb would collecting taxes and remitting to the State automatically. I still believe this is what will happen but this is confusing.

[Joyce30]

My Accountant said I need to fill out a Joint Tax Application for State of AZ to enable Airbnb to automatically relay the taxes they impose on transactions to the State. Now trying to find this application and fill it out online.  https://www.aztaxes.gov/Home

There are lots of applications but none called "joint tax..." Fumbling in the dark but I'll fill out something before my next guests arrive.

-Joyce

[Joyce30]

Success. When I finished completing the Application that references Transaction Privilege Tax, I received a confirmation that I had completed the AZ Joint Tax Application. Fee is $12. per year.

Now I may need to file for a business licence with City of Tucson... or rather, add this to my existing business license.

Fortunately, all improvements to the guest rooms are deductible as are the coffee beans and breakfast fixings. We shall see if this is still worthwhile at the end of the year.

[Molly29]

Thanks Joyce for this information. I'm in Tucson also. I have been looking for some accounting with airbnb that they take the money out. Do you have that on your transaction statements from airbnb?

Molly

[Kathy385]

Hi Joyce, I'm considering using my TH as a Air BNB.  I'm in Pima county though.  Can you suggest the best place for me to get the most current information on what I need to be doing this correctly?  Thanks

[Vicky145]

I have been struggling with the requirements to file and pay taxes according to the AZ DOR transaction privilege tax.  Per the Dept. of Revenue, you do need to go to aztaxes.gov and register your rental whether it be more than 30 days or less than 30 days.  I registered last year for the first time and am trying to renew.  There is a Youtube video from the DOR stating one can renew, but the screen looks different than last year, so I think I need to register again.  I confirmed with Airbnb that they have been collecting and remitting taxes to AZ DOR since January 1, 2017.  So now my predicament is how to report this income.  You are to include all fees including cleaning in the gross.  I have two bookings from VRBO last year but only one had taxes remitted by VRBO.  It is all quite confusing.  I am waiting for another call from a specialist at the DOR to help me out.  I have also called the local office in Fountain Hills for assistance as they are close and I could go in and speak to someone in person.  Vicky

[Chris225]

Hi Brian,

Thanks for raising this question, it's a great change in 2017 that many AZ hosts need to understand. I've been doing AirBnB hosting since October 2015 and I am also curious how to now do the TPT-EZ or TPT-2 form due to the change this year. I understand AirBnB is collecting occupancy tax for the state, however, I'm unsure how to document this on the TPT-EZ form--or if it's even required.

Also, it looks like AirBnB is collecting both State, County, and City.

For instance here an example of how it could be laid out:

Date	Gross	AirBnB Fee	Host Earned	AirBnB Occupancy Tax Collected	Taxes Due (State & City)	Taxable Earned Income	City Taxes	State Taxes
2017-01-01	$158.00	$5.00	$153.00	$17.00	$15.59	$142.41	$5.77	$9.83

From this example, a host would owe $15.59 to the state for this night. AirBnB collected and paid the state $17. In this example it doesn't seem that the host would owe anything to the state. But how are they to let the state--and city for that matter--know that they are all paid up.

[Lizzie]

Just mentioning @Brian149, @Joyce30 and @Molly29, back into this discussion. 🙂

[Molly29]

Thanks Lizzie for alerting me to the new replies!

[Cindy178]

I have been paying my AZ tax on my own for the past 3 years.  I have my home listed with VRBO.  I have recently added airbnb to my  list but they are charging more in tax than what I have been paying to the state.  Can anyone give me the breakdown of how they pay and if I can "opt-out" and pay the tax on my own.  Currently I pay 6.05% to county and 2% to city.  I don't know where the other moneys they are collecting for "tax" is going.

Thanks

Cindy

[Greg-And-Shelli0]

Somebody help! My understanding is that Airbnb is paying collecting and remitting taxes in AZ effective 2017. However, the State of AZ continues to tell me that because Airbnb pays under their license and not mine I am not getting credit for the taxes they are paying. Therefore, I have to pay or else get sent to collections. I have gone round and round with both the State and Airbnb (btw Airbnb has the worst customer service I have ever experienced) and am getting nowhere, which means I am paying 2x's my taxes. Anybody know how to fix this? Thanks so much for any insight.

[Joyce30]

Uh oh. I was told to purchase a business license for Airbnb in AZ and that would take care of it. Unfortunately, I have received a letter from State of AZ indicating I owe them additional money with no explanation of what it's for.  No time to call them during working hours so I'm left guessing. They may be trying to collect taxes twice. Between AZ, City of Tucson and Airbnb's own service fees, the cost of renting my room has skyrocketed this year. I'll call AZ if I ever get a lunch break and see what they tell me about this and let you know. Doesn't sound good. I also have a Lobbyist (for good, not evil) brother in PHX who does airbnb. He may be able to cut through the bureaucracy  and get a solid answer 'cause that's what he does. - Joyce

[Joshua116]

Hi Joyce, 

Fellow Tucsonan here. I just found out about needing a business license for my airbnb. I just filled out my TPT Application with the $12 fee. I am going to submit the actual business license application on Monday as well. Do you happen to know if I'm missing any steps here? Also, how long did it take for your applications to get approved? Thanks so much in advance for your help!

Joshua ***