New Airbnb taxes in MA

Jane89
Level 2
Holliston, MA

New Airbnb taxes in MA

What are Massachussets hosts doing about new taxes on hosts?

196 Replies 196
Kristen239
Level 2
Massachusetts, United States

Look at your listing like you were a guest checking out.  My tax amount is correct and I am on the cape with the wastewater tax.

 

I will try calling DOR again to get ahold of Jennifer.

@Kristen239 
For example, I may be incorrect in this but I'd read that the wastewater tax only applies to those actually "on Cape" so any properties on other side of canal but within Bourne or Sandwich limits would be exempt, if that's true.
The other item that I can't see Airbnb being able to determine is the CIF (community impact fee) like Plymouth voted in, as it only applies to some types of property and not others.

BTW, I tried looking at one of my listings via "private window" and am NOT seeing any reference to taxes when I put in dates to get potential cost.
The other problem (not related to tax) was that I did search on "South Chatham" and see listings from Brewster, Harwich, etc. so mine are almost invisible!

@Kristen239 
Duh! The reason I didn't see the tax was because I happened to use a week that started in June so no tax applies...so ...tried one of my July openings and now  see the tax...sort of!
BUT - it's not being calculated on the service fee which is required by law!!! It's only on the rent and cleaning fee.

Addendum: I looked at your listing for a week in July and the tax came to $238 which is correct for the actual rent to you, and cleaning fee, but was about $35 short because it didn't include tax on the serveice/booking fee.

Kristen239
Level 2
Massachusetts, United States

I thought the hosting platforms have to collect the tax for the service fees since they are the ones receiving the monies.

Josiah0
Level 3
Fitchburg, MA

I only host through Airbnb. Airbnb collects and remits the state occupancy tax. Do I still need to register on the MA DOR website?

@Josiah0I'm repeating reply here so that others might see it easier possibly:

It's MY understanding that you would still need to register so that local/state govt can track who's doing these rentals and subject to other provisons like insurance.

Also, in case Airbnb fails to do it properly, I think we're likely still responsible for getting it done.
That's just MY view based on all the stuff I've read/heard/etc. 

@ John47, have you spoken about how you are handling the additional 2.75% protection tax with your guests? Are you handing them a bill on the way over the threshold of your property?

Thanks 

@Annie694  In the email I got (and hopefully all of us in MA got?) over weekend, Airbnb claims they will be handling the Cape Wastewater as well as the optional 3% CIF (Community impact fee) so we'll see what happens. It's the CIF that I think they will have most trouble with because that is really dependant on how many units owner has and I don't see how Airbnb will know that accurately because a property may list it in multiple ways but it's actually one unit split in varying options.
For my direct tenants, I'll be adding the total 12.45% for them as Chatham has it now.

@John47 WoW! 12.45% that is a frightening number to see! 

 

Thanks for reaching back,

Annie

@Annie694It could be worse! As Chatham only has 4%, not 6% local and the CIF could add another 3% (and maybe 6% if interpreted in one way)!
Are you qualified as exempt or do you know your status?

@John47 I believe that means if I'm pulling in over $20k/year? All I can say at this point is  - I loVe accountants! 

 

I would appreciate seeing the communication you reference with Susan below too. How can I help make that happen, since you seemingly appear to have the golden ticket! LoL

@Annie694Confused by your reference to annual income...exemption here deals with type of listing/housing you have and such.

The email with the links is best sent as email but I don't want to publish my addr here (if even possible) so send me a PM with your addr that you want me send it to, ok?

 @John47  Obviously, I am confused as well! I saw something about a 1099k and making under $20k, but it was applicable to 2018 - when, I went back and read it.

 

Thank-you for being the Pied Piper of Cape Cod taxes. I’ll PM you. 

 

Smiles, 

Annie

@Annie694  This is totally off-topic, but that 20K number has nothing to do with paying income taxes on your earnings via AirBNB. You must pay taxes on all income, regardless of source, or whether or not you receive a 1099. I hope that I have misunderstood you since the penalties are massive if you don't pay your taxes quarterly.

@Susan151 Damned! You mean I can't continue engaging in criminal behavior? Now how am I going to make a living? <Laughing> 

 

Thank-you for keeping me honest @Susan151 , it's always nice that someone is paying attention. <Laughing>

 

In my 'criminal defense' <laughing> what I was looking at was a reference to a 1099K in 2018 for making under $20,000. 

 

Peace @Susan151