Local Taxes

[Rosemary-And-Dave0]

I've read many of the posts and replys.  Bottom line is that AirBnb needs to collect and remit local taxes but I can imagine this is an tough task.  I think they can be commended for doing it on a state level in many places.

The recommended solutions for collecting after the renters arrive and the special "charges" won't work well for me and many of you either from the posts I've read.

As I see it, it's my responsibility to remit the local tax.    Within the corrent system, if AirBnb does not collect it,  I need to increase my base price (which will never be accurate but could be close)  to cover the tax.  This is what I might do as my practice / solution for now.

As many have recommended it would be a good solution to have a NEW line item for local tax.  This item should be paid to the host without any deductions.  The host should be able to calculate it with a simple formula (if this is possible).  In my case the formula would be:  ("Number of nights" x "Nightly Rate" + "Cleaning fee") x "Tax Rate" = "Tax to be collected".

If anyone else has any best practice solutions they are using I'd love to hear them.

Dave

[Emiel1]

@Rosemary-And-Dave0,

Calculation of taxes can be difficult due to complex rules defined in several countries.

On the other hand: if Airbnb can calculate and collect it (being a seperate line on the offer in the booking form), adding it to the host earnings in the same form must be possible.

In my country tourist tax is not charged for Airbnb accommodation (except some cities like Amsterdam witch made a "gentlemens agreement" with Airbnb), simply local governement does not know how to deal with situations like Airbnb.

best regards,

Emiel

[Rosemary-And-Dave0]

No argument.  Realize it is a complex situation especially with other countries.  In the US I think it is usually 1 or 2 fixed local tax percentages on nightly charge and the cleaning fee.  

I spoke to my local taxing authority and they are a long way from being able to deal with accepting electronic payments from AirBnB even if they were able to send it.  Dave

[Emiel1]

@Rosemary-And-Dave0

The complexity for different countries (even for different states in the US) regarding taxes can be read here:

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

[Rosemary-And-Dave0]

 Thank you for pointing me to this article.  Obviously Airbnb is already doing exactly what I need in certain Pennsylvania counties but not mine.  Give's me some ammunition to go directly to my county treasures office.  

Thanks again.

Dave

[Ruben16]

We are hoping Airbnb adds a line for a NEW line item for local tax.   Let's see how this unrevels. 

[Vivian13]

While waiting for that to happen, may I ask what everyone else is doing to collect the local tax? I have two rentals in Galveston, Texas and the local HOT is 9%. I have to pay it out of pocket for the last two years. Neddless to say Airbnb does not have a line to collect that. 

Thank you... 

[Christian928]

In coastal New Jersey the laws require the transient marketplace ie. Airbnb to collect and remit the occupancy taxes, sales taxes and tourism taxes. I have gone around and around with the customer support on this issue and they, Airbnb, refuse to aknowledge this is their responsibility. I am wondering what others in the coastal New Jersey markets are doing about this. Realtors are using as a way to discourage going the Airbnb route, as they ar exempt from paying these taxes. Anyone out ther have suggestions?

[Rosemary-And-Dave0]

Sounds like a political thing to me.  Did you try contacting your state congressman?

[Rosemary-And-Dave0]

I will let you know if I get any traction with this issue.

I sent a letter to my State representative for Chester County PA.

In this day and age our County Treasurers office processes local tax payments through regular mail with hand filled forms monthly.  They cannot handle e payments or tax filings

AirBnb will offer them a single payment for all bookings by all Chester County residents monthly.  How can they not accept this?

From what I can see there are about 100 of us in Chester County.

Dave and Rosemary

[Lavonne4]

Thank you, Dave & Rosemary for your balanced post on this item.  I am brand new at hosting and have already wondered what to do - seems like extra work to have to send a "special offer" every time someone requests a reservation just to add on the 5% tax my local laws require.   I see the advantages of allowing instant bookings but realize it will always require a "change in reservation" to add the local tax in - doesn't even seem "hospitable" to accept a reservation and then change it to add more cost!

I think I will do as you conclude - simply pay it on my own and increase the price to basically cover it. Since you wrote this post, have you come to any other conclusions or have any other advice for a newby?

[Rosemary-And-Dave0]

Yes.  

I contacted my state representative and asked her office for help getting the Chester County treasures office to take a look at this.  She immediately recognized the value of Airbnb doing all the collection work.  In April, Airbnb began collecting the county tax.  

It took a while, mostly on the Airbnb side, to get past the form letter type responses and get action even from the representatives office but eventually it got done.  Took a few months.

Best way to go.  Good luck.

Dave

[Lauramay0]

Good day everyone.  I am at pains regarding getting properly listed on the Airbnb Website.  I have tried a few months earlier and had to just retrieve and rest a while. Airbnb Website is very hard to browse.  It is really a task. However,   I have started again and here comes the tax problem facing me.  Now in SVG there is VAT and an Occupancy tax.  The VAT threshold is over $120,000 and 16% tax, Obviously it for big businesses so  I am not qualified to obtain a Tax ID that can alleviate this problem. The Occupancy Tax, which is applicable to me is EC $8.00 or US $3.00 for each room guests occupied.  I spoke to the Tax Authorities and they suggested that the tax be collected from guests upon their arrival. Based on the Airbnb Website it is not recommended and should be done through special offer and also  include the cleaning fee. This is obviously the way I will go having no other option.  But obviously it cannot be applied unless there are requests for bookings.  However, the website still has it flagged on the listings.  I would like any feedback please. My listings are up and I am still to fill in the missing parts.  Hoping to complete as quickly as possible in the upcoming days.  Good luck everyone..