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

[Sherry110]

 Hi Everyone, has anyone found out anything about the TPT tax? This is so bad. You cannot get a stright answer and I am paying dubble tax. I have an Airbnb in AZ. Thank you.

[Melanie486]

Greg and Shelli, 

I am a host in Tucson and am currently dealing with the same issue you described a year and a half ago.  AirBnB is collecting TPT tax and occupancy taxes for me, but the AZ Dept of Revenue is telling me that they are not seeing any payments associated with my TPT license. I am also going round and round between the AZ DOR and AirBnB and neither is able to help me with this.  Have you found out more and resolved your issues in the meantime?

Thank you!

[Christine455]

I'm thoroughly confused.   I thought that Airbnb pays the TPT tax FOR me, but I can not find any record.    I don't have a license and was just reading here:

https://www.avalara.com/mylodgetax/en/resources/vacation-rental-tax-guides/arizona.html

So it looks like I should get a licence.

Where do I find when and how much Airbnb paid?

[Christine455]

https://www.avalara.com/mylodgetax/en/resources/vacation-rental-tax-guides/arizona.html

Penalties and Interest Payments

Will I be assessed a penalty if my TPT return is filed late?
TPT returns filed late are assessed a penalty of 4.5 percent for each month (or any portion thereof) up to a maximum of 25% of the amount of tax reported on the return without any deduction for tax paid on or before the due date.

Late payment of TPT may be assessed a penalty of 0.5 percent per month up to a maximum of 10 percent. The total penalty is limited to 25 percent of the total tax due.

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I've been hosting over a year, am I now subject to this penalty for filing late?

[Michele820]

I'm a bit frustrated with Airbnb for not disclosing what the Arizona taxes they withhold pay.

Does Airbnb pay a lump sum to the state?

Does it break out our individual accounts to show what they collected on our behalf?

Do these taxes go towards local bed taxes or to the state?

Is there a copy of the details of the agreement between Ducey and Airbnb? If I remember correctly, Ducey's agreement limits any jurisdiction from zoning against short term rentals. Did he cut a deal for taxes in return? If so, I'd like to see what both parties agreed to.

Short term rentals are such a new market, not even mortgage companies know how to handle them.

How are we supposed to know what to do?

I'm just not sure where to research this information as discussions end up going nowhere by asking more questions than providing answers.

If you're out there Airbnb customer service - Please help!

[Joyce30]

Yes, apparently we need a Transaction Pribelege Tax licences. Because I had a consulting business there was supposed to be a way to add Airbnb to that. Except my consulting wasn't supposed to pay any tax on services. Though apparently that may change soon. I couldn't figure it out. Took a full time job and quit hosting Airbnb guests. Now to start figuring out how to pay the penalties. Seems AZ purposely made it complicated.

[Cody96]

I'm just setting my Airbnb up now and am confused at what I'm supposed to set up.  I am applying for a TPT license right now for my photography business and will add my Airbnb to that if need but I can't see where I need to do that so I get credit when Airbnb collects on my behalf.  

According to this I also have to collect the local transient tax on top of what they collect for the state and county:

https://www.airbnb.com/help/article/2295/occupancy-tax-collection-and-remittance-by-airbnb-in-arizon...

Looking forward to hearing what others find out.

[Cody96]

At least for Page, AZ you can click on the Occupancy Taxes and Fees details to see if Airbnb is collecting on your behalf:

It doesn't quite add up right though...  Page is 14.163% taxes (6.9 state and county, 3% local, 4.263% additional motel/hotel tax).  In this example it looks like 13.892%.  

More confusion...

[Cody96]

I contacted Airbnb Support to let them know that it looks like they are using old AZ state and Coconino county tax rates (5.5 and 1.1 respectively rather than the current 5.5 and 1.3) to calculate the taxes.  

While on the chat with them they sent a link to this w9 form.  I'm hopeful this helps with the tax liability being credited to me:

https://www.airbnb.com/users/payout_preferences/

It also appears that since Airbnb is collecting and remitting on our behalf we should get this form 5018 from Airbnb:

"Online Lodging Operator Exemption Certificate"

https://azdor.gov/forms/tpt-forms/online-lodging-operator-exemption-certificate-be-completed-olm

[Theresa-and-Timothy0]

I just found out yesterday about form 5018. Dang! So will airbnb fill the sucker out?

[Theresa-and-Timothy0]

Has anybody had any luck with Airbnb filling out the Arizona Form 5018.  They said they don't do that. That their "proof" is the little spreadsheet we click on to get all the info.

[Cody96]

After an extensive back and forth with them they told me they will not be filling the form out for each host.  

[Cally13]

I don't understand why they don't do this. AZ state says they are required. But I guess just keep note of the fact that they collected but did not pay the owner the taxes? document everything?

[Kimberlee5]

I am new to airbnb.  I got my TPT license and I filed for the first time electronically today.  I don't think I did it right.  I called the AZ department of Revenue.  She walked me through it, but it doesn't seem right.  My earnings for Feb were 542.00 gross.  I put that in the line, then on the deductions line she said under code 775 to again put the gross earning of 542.00 because that is what air bnb collected and then paid taxes on.  It said my tax owed was zero.  (weirdly it also said however the only tax that should have been collected was city tax (peoria) of 1.8% meaning just over $9.00, however airbnb collected $31.00 in taxes???? The AZ revenue lady said there was no other tax becasue it was a residential rental...SOOOO confused.  Has anyone filed electronically and can walk us newbies through this?

[Rosy55]

So I have a TPT, a business license and I am wondering how to input that into my AirBnB account. I see that under the "payout" tab there is a section for "taxpayer info" and I added the tax ID and business name there- what else do I need to do? I just got that TPT-EZ in the mail and have no idea if I am supposed to pay something or if I even need to fill it out? Has anyone found out? Thank you