Hotel tax collection

[Amy38]

Airbnb is about to begin collection taxes for my town...Nashville,TN.  This is great because I am tired of askind guests for the.

The catch is that they simply remit a lump sum to the Dept of Revenue with no breakdown of the rentals paying it....I forsee some real problems with the state.

I would like input from hosts in cities where Abnb has been collecting the tax.....any problems.

[Carolyn214]

This has been an immensely helpful discussion. There is also another host who drew up a flowchart that is also very helpful.

So to collect the Hotel Occupancy tax (the 6% + $2.50 nightly) do you have your base rate reflect this? Or do you ask to charge them separately--through Venmo/Paypal/check--because the added tax the the base charge will increase the Abnb service fee?

Thank you so much for all your help. All of you!

[George582]

DID YOU EVER GET A RESPONSE TO YOUR QUESTION?

GEORGE

[Amy38]

@Carolyn214

I send a ‘funds request’ through  Abnb....its easy and the guest has a record as well as I.

The tax amount is recorded in my ABnb acct  separately from rental proceeds so there is no problem at tax time.  I can pull up the record at any time.

Before I realized I could do this, I simply collected the tax from people after they arrived....check or cash.  Using Abb is much easier for both parties.

[Carolyn214]

Great! I will do just that! Thank you very, very much.

[Catherine1089]

Miss Amy u r a wealth of knowledge - thank you. I just opened in July and have paid my 1st hotel tax in person down at the Howard Building . Do u know of any plans for making that an online payable tax? My next question is to ask how do you word the request for taxes in the separate request? I charge 95 a nite and have so far with the five guests I have had since opening, just taken it out of my nicely fee- I feel weird about asking for more separately. Is that what is the norm now?

[Amy38]

 I mention it twice in my listing ...pointing out that Abnb collects the state income tax but not the city tax of 6%+ 2.50/night...annoying but yell at abnb, not me.

I mention it in my first note to them and then send a money request throughAbnb which gives both of us a record.   Abnb notes these as other funds in their transaction breakdown, so it is good for us two.

[Linda1197]

@Amy38

When do you send the request to the guest? This is new to us. Have you had anyone not pay? Thanks for your help.

[Derry2]

I've been digging through different community posts about this & appreciate all of the info found here! 

One thing I'm curious about --

Does everyone pass on the additional charge to guests? 

There's a property manager bnb'ing four units across the street from me & they proudly proclaim "all additional taxes included in rates"  ---- What's everyone's feeling on this?

[Camille211]

We hadn't been adding the occupancy tax to the rental fee but may consider doing so after reading this thread.

[Derry2]

To the O.P. and all the other Nashville hosts on this one: Did you know that Metro actually wrote into the STRP Hospitality Tax regulation that it's a violation to publicize you'll absorb that H-Tax, or refuse to collect?

I didn't until I re-read the regulations again myself the other day...