Day of Reckoning for New Seattle Taxes

[Paul154]

Seattle hosts all have been so concerned about the new regulations that we all have been oblivious of the increase the Convention and Trade Center tax on short-term rentals to 7 percent. This is on top of the new flat taxes from the City. Total taxes are now over 20%.

This puts us at a disadvantage. 

How do we compensate? Are cleaning fees taxed? 

Do we increase rates? 

Worried and stressed here

[Donna240]

I feel for you, Paul, and our San Francisco taxes are only at 14%. When you add income tax, you'll begin to wonder why you host at all. I can only speak for my city and we have to pay the 14% tax on cleaning fees, as well as the commission paid to Airbnb. It is not imposed on security deposits that are returned to guests. The good thing is that all hosts in your area will have to consider this when pricing their properties too, so you will still be in a fair competition with your peers. Lets face it, Seattle is such a great city, tourists will still be renting, so take heart. 

[Pete28]

I'd be more worried about the lack of business. Airbnb itself seems to be suggesting that guest numbers are down and that their are way more airbnbs. 

It's also a lot better than the proposed $14 flat tax which would have hurt those who offer affordable space.

[Paul154]

@Pete28,

Has the flat-tax been repealed? The Seattle Times and PI have been mum about that change.

Compared to a flat-tax, and a tax rate is less punitive for budget spaces. But our total taxes are way too high.

That said, even with Airbnb fees and taxes, I'll still choose Airbnb vs. renting out long-term on my own.

I hate long term renting to entitled and protected Seattlites.

[Pete28]

@Paul154

flat tax is no more. It would have hurt big time as I do $60ish night on slow end.

hopefully the new regs on primary plus one also limit the growth of new Airbnb - I believe the number of hosts has doubled in the last year.

[Amy1087]

Hi Pete, do you know what $ impact there will be once the short term rental license requirement starts 9/1?  Is Airbnb adding the additional tax to the cost or do we need to adjust?  

[Lorrie21]

Airbnb says that they will begin collecting taxes Sept 1, does anyone know what this means?  

[An55]

Hi...

Taxtime approaches. Anyone paid the Seattle airbnb taxes yet?

Thbx

[J-Renato0]

I do not have any idea to help you, except for quoting one of your most cleaver fellow citizens.

"I always tried to turn every disaster into an opportunity."
John D Rockefeller