Hotel Taxes - Occupancy taxes

[Cynthia1]

I normally pay my own hotel occupancy taxes in San Diego where I rent.

I am new to AirBnB, and not sure if they are paying them for San Diego.  The info page, seems as if they are, but I am unsure.

Can anyone let me know in the area, what they do?

Thanks

Cyndi

[Ellen12]

Collecting and paying the appropriate state, county and city lodgings taxes for your ABB income is an obligation for all hosts.  After much research and angst of "how are they going to collect and pay appropriately for me???", I decided that their legal team must surely know what they are doing.  95% of my rental income is from VRBO, and I've always paid the taxes on a monthly basis.  If you're in an area that doesn't collect, then you need to be doing it yourself - it's the law!  You could indeed face a stiff penalty for not doing so.

[Sheri13]

Hi Clare, I'm new at this tax thing. I have a business license but don't know where to charge my guests for the taxes or how to pay them to my county when I do get them from the quests, can you help?

Sheri

[Clare0]

@Sheri13  Ah, Occupancy Taxes... the bane of many Airbnb hosts!  I take it from your question that Airbnb is not collecting TOT for you, correct?

If that is the case, you have two awful options: 

1. Collect it directly in cash from the guest when they arrive.  If you do this, it must be clearly and prominently disclosed in your listing so it doesn't come as a surprise to the guest. 

2. Simply incorporate it into your nightly rate and not bother the guest about it.  The downside is that you wind up paying Airbnb 3% on money you wind up paying in taxes.  I prefer that option since I calculate that for me it amounts to about $36 a year which I would gladly forego to avoid the cash thing and customer confusion. 

The only good news is that TOT is tax deductible so be sure you keep track of how much you pay. 

As for how you pay your county, that's something you will need to ask your county tax authority or the department that issued your license.  In my case, the county sends me a form each month to fill out and remit payment.  More than likely your county will do the same.  

I hope this helps and I hope Airbnb will develop a way for hosts like you and me to do this in a more simple manner!

Clare

[Clare0]

@Sheri13 BTW, please use the @ when you want a message directed to me..that way, I will get a direct message!

[Ellen12]

You can simply Google "where does ABB pay occupancy taxes" and it will list countries, states, etc where it is remitted for you.  I've been doing VRBO for years on my properties, and It's not really a big deal to remit yourself.  In the state where our vacation properties are located, ABB does remit for me.  But I'm still doing it for my VRBO income (which is the bulk), and it's all done on-line.  If you need to remit yourself, just go on-line to your states's department of revenue and you can get the right information there.  

[Mirjam0]

If  tourist tax is collected  from the guest,  you will  see  the Occupancy tax  that Airbnb  collected  from your guest specified  in  Dashboard-> Earning Details -> Transaction History -> Gross earnings.

 Here  you see in which  cities  Airbnb collets  Occupancy taxes  from the guuests:

https://community.airbnb.com/t5/forums/replypage/board-id/listing-and-reservations/message-id/1173

San Diego is among it !

[Deb0]

Here is the correct link for the cities where Airbnb collects and remits occupancy tax: 

https://www.airbnb.com/help/article/653/in-what-areas-is-occupancy-tax-collection-and-remittance-by-...

For all hosts not in this cities please encourage Airbnb to add a line item so we can appropriately invoice required TOT taxes without the hassle of billing separately va paypal or collecting a check upon arrival. 

[Teri1]

The web address you provided doesn't come up for me!  I wonder if airbnb does this in Seattle?  Teri

[Clare0]

@Teri1 Here are some Airbnb links on the subject: 

https://www.airbnb.com/help/article/654/what-is-occupancy-tax--do-i-need-to-collect-or-pay-it

https://www.airbnb.com/help/article/653/in-what-areas-is-occupancy-tax-collection-and-remittance-by-...

[Ellen12]

New to Airbnb but long time with VRBO.  Is there anyone that I can actually speak to on the phone and help me with the lodgings tax issue?  I have been filing with our state, county and city monthly  but I cannot understand how Airbnb is going to collect these taxes for me and pay them on my behalf without my filing account information.  Thanks for any help you can give me on who I can speak to about this.

[Clare0]

@Ellen12 Has Airbnb sent you a message that they are going to collect the occupancy taxes for you?  I don't think they are in your area.  Please see the links I posted to previous postings in this thread.  Airbnb only collects occupancy taxes in major US and European cities. 

[Ellen12]

Clare: Yes, I did get an e-mail and they are apparently collecting lodgings taxes in our area which is coastal Alabama.  But the info they give is somewhat ambiguous, so I'm still not sure they will be collecting and paying all 3 taxing agencies.  And how are they paying on my behalf without our account info?  Any idea?  

Separate question:  so you set your rate BEFORE taxes and Airbnb calculates and pays those taxes?   Thanks.

[Clare0]

@Ellen12 Wow, that's great if Airbnb is collecting occupancy taxes on your behalf.  Unfortunately I have no way of knowing if they are collecting all three taxes or not so you will need to contact Airbnb on that.  

And, to answer your question about Airbnb's ability to collect these taxes without your account info,  seems to me they don't need it since the tax transaction is now between the guest and Airbnb who passes it on to the appropriate authority.  The host is out of the loop since they don't receive the tax dollars and don't pay it.  The tax liability now rests with Airbnb, I would think. 

In my case, I had to get a business license (after getting approvals from planning and zoning departements, etc.) and then the sole responsibility for paying the taxes rests with me.  I've set my nightly pricing to include the 10% occupancy tax I have to pay.  So if I want to net $200 per night, I have to set my price at $225 or thereabouts.  I would be thrilled if Airbnb collected the tax so I could lower my nightly price.  Another unfortunate consequence of having to pay occupancy taxes out of my pocket is that I wind up paying Airbnb's 3% service fee on the dollars I ultimately pay in taxes.  It's not much but it adds up. 

Not being an Airbnb employee, I can't conclusively answer your questions, but if you get answers from them, please get back to this forum so we all know.  More and more counties / municipalities are getting on the occupancy tax bandwagon so it's only a matter of time before Airbnb collects taxes for all of us and we need to know exactly how it works. 

Good Luck!

[Ellen12]

Thanks, Clare.  I can't find any telephone # or direct place on Airbnb website to actually contact an employee.  Any idea?  I'll keep looking.

I have my pricing as you do now currently, including taxes,  but I do need to sit down and change it.  We are traveling so will be a couple weeks unfortunately.  

I guess I shouldn't worry about it, but I still don't see how Airbnb will pay these taxes for me in the account already set up for this property.  Guess a plan has been worked out with the appropriate state and local taxing agencies.  But it's a puzzle!

And doesn't see fair that you've been paying the 3% on taxes; that never occurred to me!  But I'm a newbie here.  

[Clare0]

@Ellen12 Here's a handy guide for contacting Airbnb.  @Airbnbhelp on twitter is the fastest way to get in contact.  Some hosts have set up twitter accounts just for that purpose.  They have to reply to each tweet.  

https://community.airbnb.com/t5/Tips-Tricks/Contact-Airbnb-A-How-To-Guide/m-p/16165/highlight/false#...

I do have the option of collecting occupancy taxes directly from the guest when they arrive, but I find that awkward and cumbersome since I don't have a way to charge credit cards and don't like to accept cash.  And checks? Nah. 

Please be sure to get back to us with what you find out!