AirBnB collects and remits taxes in 40+ states, PR and the US Virgin Islands, but for some reason, the tax they were a proponent of in Massachusetts is not even mentioned.
There have been no updates by AirBnB on how they are going to help their hosts handle this tax which according to the State information includes all fees cleaning, and service (AirBnB Service Fee?) and the Security Deposit.
The bulk of Massachusetts AirBnB revenue in Massachusetts would have to come from Summer Rentals in places like the Cape, Martha's Vineyard, Nantucket and the Berkshires.
Without some sort of resolution, or at least notice from AirBnB we're faced with either eating the tax, reporting costs, etc. or just cancelling all of our summer reservations.
@Suzanne And James1
GLAD I was able to help you!
1) I don't see any way that ABB should be collecting 8% as it's 5.7% for MA + 4% Eastham + 2.75% WW fund so if they didn't collect Eastham's 4%, still should have been 8.45%, not 8%.
2) My best guess would be that the 4% should go back to guest because it probably wasn't calculated properly since it HAS to be based on ALL fees, including booking fee, which you probably don't know the amount of (unless it was Special Offer, when host is shown it briefly).
I would verify with Jen since technically ABB is required to pay it to DOR.
3) There's NO way that ABB should have told you to collect the 4% but then again, their CSR on this topic has been lousy at best.
4) Certificate nbr field is sorta a "coming attraction" feature on site based on email from them.
@John47 Hi John! You are correct. I misspoke. Airbnb collected the 8.45% tax but not the full 12.45% tax for the Cape and specifically Eastham. When I called Arbnb they told me to collect the other 4% through the resolution center. So I did and my guest graciously paid. Now I have this money sitting in the savings acct waiting to distribute. I did reach out to Jen again today to explain this new issue. I also had another rental in August that booked in early Feb through Aribnb. At that time Airbnb was not collecting the tax and told me to collect the full 12.45% so again I did through the resolution center. Again this money is sitting in savings waiting to distribute. At this point my question to Jen is should I return the money to these guests and let airbnb work this out! I will keep my eye out on the certificate nbr field in Airbnb. Thanks for your valued help!
As I said before, since you most likely do not have access to the total paid by guest, including the 12+% booking fee (which has to taxed!), you're unable to properly compute the true tax amt.
Plus, since AIRBNB is responsible for these taxes, I am concerned they may now go after guest to get that money.
So with both of the situations, that's why I would highly suggest returning it to guest...but...how to get them ALL of what they paid back as they shouldn't loose the 3% credit card fee that was charged because the entire transaction between you and guest should be voided as if it had never occurred, IMO.
Just found this tip and it does work to remove the tax if you are exempt. It doesn't accurately describe my listing, but I will use this until AirBNB comes up with something better.