Collecting taxes.. the ongoing nightmare.

Tom182
Level 2
Boynton Beach, FL

Collecting taxes.. the ongoing nightmare.

Does anyone know if airbnb has plans to add a field under "Pricing" (a percentage) to collect occupancy taxes? Although they are collecting and remitting state taxes for me (Florida), they are not doing so for my county (Palm Beach). I don't understand why there isn't a setting to make this process simple. Using "special pricing" to collect taxes is hardly special pricing -- from a guest's perspective. Would take them no time at all to add such functionality.

 

Would like to hear from anyone who has been dealing with this ongoing, annoying, aggravating headache.

8 Replies 8
Tom182
Level 2
Boynton Beach, FL

Follow up:

 

I recently began using Wheelhouse to automate pricing instead of airbnb's Smart Pricing (which typically sets rates far too low in my opinion), and have asked them if they could add an option for taxes. Since they're already connecting to airbnb and setting nightly rates it would be easy to add taxes. I have a feeling they're more likely to implement such a feature, since airbnb hasn't made the tax issue manageable in the 9 years they've been operating.

Boy do I agree!  Special pricing is anticipated by guests to be a Good Thing, not an addition.  I would love to know when Airbnb will have the option of adding taxes (not paying them since I wouldn't want to rely on promptness, just adding them) since in Monterey County I pay a whopping 10.5%.  That is a complete loss to me, since I refuse to call it Special to my guests.  Seems if Airbnb does it for some jurisdictions, they should have it as an option for all hosts.  Adding it to my base rate would put me out of competitive pricing.

 

Any word on that coming to pass??

I live in Florida and am new to Airbnb but rent thru vacation rentals also where they do offer an automatic add on area for collecting sales tax and tourist tax. Florida dept of revenue is 7% for my area AND tourist tax is 4%. two differnt taxes.

 

Airbnb collected $ 80.00 on my behlaf in an occupancy tax and then gave me no further information than that.  the information provided by airbnb is very vague

 

Heres my questions:

 

1. Is airbnb calling a toursit tax an occupany tax and are they also including the sales tax ...again there are 2 different taxes (state and county) which one are they collecting for? 

 

2. how did they calculate it? what is the percent they used?

 

3. who did they remit the money they collect to? Florida Dept of Revenue for sales tax and the Local tax collector for tourist tax? 

 

4. Under whos name did they remit that so Im certain I received credit?

 

5. And why is there not a phone number to airbnb so that I can call and talk to a real person?

1. They are both the same thing. Occupancy tax / tourism tax (in my experience) have been used interchangeably.

 

2. The percentages are detailed under the FAQ section of their website (under taxes).

 

3. Also detailed on the website. They collect occupancy taxes and remit to the state of Florida, but do not collect any taxes for Palm Beach County where my property is located. I do not believe sales tax applies. Only occupancy taxes.

 

4. They are submitted in bulk under Airbnb's account # (which a customer service rep sent me in case I needed it, which I didn't).

 

5. Ask airbnb. It would have made things much easier had I been able to speak with someone over the phone. Instead it took nearly two months of back and forth with Airbnb customer service, and reading posts from other hosts before I had all of the answers I needed.

Just spoke with the state of Florida Department of Revenue.  They confirmed that AirBnB is collecting the sales and bed taxes and sending them in bulk to the state.  I asked how the counties were getting their bed tax out of that, and he suggested that no one in his office knew how and when this is happening.  

 

Had I not of been looking around on AirBnb site with a fine-toothed comb, I would not of understood that they are sending the taxes to the state.  I wonder how many people are double paying, once by AirBnB and the other themselves.  

In Palm Beach County we must submit our own occupancy taxes. Be sure they are actually collecting/remitting for your county (listed on their FAQ). Not all Florida counties have arrangements with Airbnb.

In Collier County, Fl, they also do not collect 5% for County but only 7% for Florida state.  If you look into clients bill, they claim that 7% is distributed to County as well.  That way making us liers if we ask for 5% for County tax.  If we add it to the price, we are not competitive on the market.  Do you have any idea what can be done to push Airbnb to change and give us option to add in the certain space apllicable tax for automatic calculation, the way it is set up in Vacation Retntal by the owner. 

Hi guys,

With Airbnb and taxes is really nightmare.  I tried to persuade someone to leave us space where we could add applicable tax for the area of our property.  But, they do not want to do it.  To make thing even wors they take 7% for Florida state and show to my clients that part of it is distributed to County as well.  In Collier County tax is 5%, making it total of 12%.  I am supposed to take it as a "speciall offer" from my guests, and it is totally unacceptable to call request for additional money 'speceal offer".  It is the worst part of work with Airbnb and even when I was able to exchange few males with someone there, nothing happened.  This politic with taxes is totally unacceptable.