Hawaii tax collection and deposits by Airbnb

[Heather32]

I  just set up my Airbnb listings to have the taxes collected separately from the cleaning and nightly fees. Last night the first reservation deposit came in, just the tax, and instead of being deposited into the account for that lising, it was deposited into the default account.

Is this going to be routine?

Does Airbnb deposit taxes separately from other payments? If so, does anyone know why?

I am going to have to create a separate account to receive taxes, or revert back to not separating the taxes if that is the case.

Mahalo to anyone else who can help me with the answers.

I did call Airbnb this morning, but it was very apparent that the person I was talking to did not have a clue.

[Laurie81]

It's been like that since day one for me with AirBnb - several years now. All of the taxes I collect for my three Hawaii listings are deposited into my Default account. I can't tell you how many times I've been in touch with them to request a fix for this and have tax payments deposited into the correct account. I know it's possible to do it and it appears that they refuse to even address this. It's absolutely insane!!

[Casper--David0]

Aloha! Well, so much confusion about airbnb tax collection. I understand they are now offering a way for hosts to reasonably collect taxes, but when I go to my listing and click on an unbooked date to see what the guests will be charged there is no mention of collecting taxes. Can anyone please advise? 

[Lloyd-and-Loring0]

I too see no mention of taxes being collected (although in other states there is!). I do wonder whether it varies by which county our rentals are in.  Personally I would not care if the taxes were deposited in my default account. Just as long as the guests could be charged!

[Trevor14]

I was just looking at my Maui listing and just noticed under the "local taxes and laws page" 

Local tax collection

We collect taxes on your nightly rate and fees for bookings.

I've been adding onto my nightly rate and remitting my own taxes.  As far as I know, airbnb does not file TAT and GET returns and remit any taxes, but are they collecting extra money purportedly for taxes and if so, what is happening to this money?  I get my money through paypal.  I don't know anything about a "default" account.  Separate account?

[Megan299]

I am in Georgia, and am experiencing the same issue as Heather32 in Hawaii!  Since Airbnb has now allowed us to add sales tax rates onto our listing, so that Airbnb collects the sales tax for us, Airbnb has managed to make a huge mess of the whole system.  I have several Airbnb properties, that pay into 3 separate bank accounts, and so far, they deposit any/all sales tax collected into the one default account, and not into the corresponding accounts that the payments go to.  Needless to say, this makes for a bookkeeping & tax reporting nightmare.  If anyone has noticed, this also happens when I ask guests for a resolution payment as well.  All resolutions pay out to the default account only.  I have called, complained, requested change, various times, all to no avail.  I am wondering how a company as large and widespread as Airbnb can operate like this.  Another problem is that Airbnb apparently doesn't allow guests to check a box if they are tax exempt, to enter their tax exemption and bypass the sales tax.  I am so frustrated!  Anyone else???

[Yuki-and-Charlie0]

Can anyone tell me if this is still a thing? Are taxes still getting routed to the default payout account? This has been an issue for me since I started hosting years ago. 

[Heather32]

Yes, it is still a thing, and I ended up setting up a separate default account just for the taxes and the resolution funds.

I have 14 listings and I pull the taxes from the default account and add them to the holding account once a month.

[Joseph1724]

About to list with Airbnb but found out occupancy taxes very confusing. Are you able to figure out how Airbnb works? Do we need to include the total taxes in Oahu now is 17.962% combined with our base daily rate? Example, instead of listing at $600/night, we need to list at $708/night? 

[Joseph1724]

Does anyone know how Airbnb collect occupancy tax from guests that book our home? Our home is in Honolulu, HI. I tried to sign up for Airbnb listing but could not find tax collection to be added. I assume that Airbnb wants us to include daily base rate with the taxes in it. If so, our listing rate would be high and that scares away anyone looking to rent. Any advice would be appreciated.  

[Heather32]

Airbnb will collect the taxes you tell them to collect for Hawaii.

You will find a tax heading under the listing, under "Pricing and Availability". Scroll down to find "Taxes", and you can edit the rate there. You will need your TAT #, and your Tax Map Key number.

The other way to do this is as you mentioned, by adding the taxes into the nightly rate. I have found that guests like to have this broken down for them, and it will save you a headache if you are offering a discounted rate at any time.

[Joseph1724]

Aloha. Thanks for your reply. I followed your instruction but the 'Taxes' you suggested were not on the menu, so editing was not possible. Unlike VRBO you can enter the % of taxes to be collected. I do have GE, TAT and TMK and have been paying all taxes since a member of VRBO.  

This is what I discovered but have not found any confirmation. Let me know if I am correct.  I assume that you are a 'superhost' on Airbnb? If so, they remit the collected taxes to you and have you file the taxes yourself. However, I am confused, whether Airbnb collect the taxes and file it on behalf of non-superhost. I just want to be sure that my taxes are filed either way. The online service chats are clueless.   

[Heather32]

It does not matter if you are a superhost or not. What matters is your location. In Hawaii, the state does not allow Airbnb to collect and remit taxes for you. You either have to up your nightly rate, or add taxes to your listing. 

I would strongly suggest you call Airbnb for assistance in setting up your taxes on your account. You don't need to be a super host.