@Shelly1, there are a couple of ways you can collect the occupancy tax. I use the nightly rate, which is the simplest. Therefore, I factor in a 10% occupancy tax into my pricing. Of course, since I do that, Air BNB collects a wee bit more host fee. Alternatively, you can collect it separately by requesting the tax after the reservation is confirmed. Now should the reservation be cancelled you have to remember to refund the tax collected. Personally, I don't like the hassle of the second option.
If you include it in the nightly rate, be sure to mention it in your description. Also, if you have Smart Pricing, be sure to factor in the tax when determining the lowest rate if you decide to include tax in your nightly rate.