New Airbnb taxes in MA

[Jane89]

What are Massachussets hosts doing about new taxes on hosts?

[Marcia283]

that sounds like progress from the AIRBNB side ,  but does that mean that those of us that added the fee  as a "special offer"  per their instructions are now charging the tax twice?

I seriously wonder if AirBNB is going to get the town specific rates correct too..    

[Darryl58]

Retraction:

A guest just told me that he IS being charged an occupancy tax (despite me not being able to see it at my end) so that at least helps with where the money is coming from.  But how do they know it belongs to my specific Tax ID number at MDOR?  Can you give this info to Airbnb somewhere? Thanks.

[John47]

@Darryl58 
I've not been on the Airbnb site recently as only had one booking this year via them but I understand that at some point, we'll need to provide our DOR number to our profile on site so they can link payments back to us.

Based on my conversations with Jen @ DOR, they will be going after Airbnb for any missing tax because that's one entity for lawyers to deal with vs hundreds of us individual hosts.

I'll trust ANY word from her over any CSR/rep from Airbnb because I think they're still clueless and not informed on the true answers/info!
Was away from net access for while this week due to tornado and if you want me to see any post, please tag me, ok?

[Susan151]

@John47 I hope you were spared too much tornado chaos, though it sounds as though you had your share of troubles. Here's to a quick recovery!

[John47]

@Susan151 
Two large 6"+ trees, pine + oak, snapped and landed in woods/clearing behind two cottages. That was it mostly here other than no power for 45+ hrs which was inconvenient for all but at least temps were quite mild and nice weather after.
Of all the weeks it could have happened this season, this was the best as two units/guests are locals who are displaced for summer from their winter places so not really 'on vacation'.

[Laura3172]

In my experience, AirBnB has been automatically collecting MA and Plymouth Township taxes from my guests since the July 1 inception date.

From what I can tell, they incorrectly collected a 3% local Community Impact Fee for guests in July but have corrected that for August and beyond. I am not sure if there is any plans to reimburse those guests??

In theory, ABNB will file my return and reimburse the MA DOR... 🤞🤞

[John47]

@Laura3172 
Since the CIF is highly dependent on individual host situation, I can see them not doing it right because it applies to some hosts but not others. Plymouth did implement the CIF and is one of the first towns to do so, AFAIK.

As to reimbursing guests, I would suggest providing what proof you may have of incorrect charges to Jen at DOR via desimonej@dor.state.ma.us so that they can followup with Airbnb as needed.

However, you still need to be registered and file a zero dollar return by Aug 20 IF all your July rentals were via Airbnb because of how they will report it to DOR.

[John47]

Highly suggest everyone (who hasn't yet) read this page which tells intermediary like Airbnb what they must do and not do as related to us as operators:
https://cciaor.com/news/dor-issues-expanded-guidance-on-intermediary-responsibilities-on-short-term-...

[Sharl0]

Thanks for this information. I just registered our Airbnb with MassTaxConnect following your directions.

[Karen1473]

@John47 Thank you for all your helpful information.  This has been the most confusing and frustrating experience with Airbnb.  I still cannot believe that they have not sent out any correspondence regarding what the procedures and protocols that should be followed.  I did sign up with MassTaxConnect.  I did input the rents that I collected.  I imagine that the State will now go after Airbnb for the taxes.  Now that Airbnb is now collecting the taxes, I would imagine you would not need to do this for August rents and future months.  I would imagine that you would only do this if you rent to someone directly?  Thanks John

Karen

[John47]

@Karen1473 
You're correct that you only need to collect and remit taxes for those guests handled directly with rent payments paid to you, not via any intermediary like Airbnb/VRBO/etc.
In those months that all rentals are done via Airbnb, it's my understanding that you'd report zeros on MTC, though as I have mostly direct rentals, I can't say for sure. Because I found this on DOR FAQ:
A return is required to be filed only for any month when tax is due. If no tax is due, no return is required to be filed.

So -- if taxes are being paid via Airbnb, that implies maybe that you as host don't need to file? Good question! I need to ask Jen @DOR, I guess.

[John47]

@Karen1473 
Got this reply later this week from Jen:
There only needs to be one return filed-so whoever is responsible that particular month will be filing.  If you are the operator and went through an intermediary you would not be filing returns-only the intermediary is.
So that seems to confirm that if all your rentals came via Airbnb for a given month, you can skip filing. Previously, I had understood that, for all months that you listed as being 'open' via the checkboxes on MTC site, you needed to file a return but her reply says otherwise.

[Karen1473]

@John47 

Thank you John. I think I filed wrong then. I listed July rental amounts on the Mass Tax Connect site. From what I remember, I mentioned collecting $0 for tax. These were for Airbnb rentals. I’m sure I can delete it?  Thanks again for your help. 

[John47]

@Karen1473 
Were the rentals for July via Airbnb? If so, you don't list any of those amounts on the return and instead of deleting it, you might want to at least file an amended return with the corrected values.

You're welcome! I'm trying to provide what help I can to others BUT remember, I'm just a host also and NOT a tax expert so any advice should be taken as such, ok? Though I've done a LOT of reading on this and had numerous emails/calls to/from Jen @ DOR.

[John47]

FYI: If a guest cancels and never actually stays (takes occupancy), any penalty/payment that guest made is NOT taxable so not sure how Airbnb will handle that situation.

I had an off-line reservation that was cancelled and I was wondering about tax on the deposit that I kept as a penalty and asked Jen @ DOR who confirmed that if they don't stay, they don't pay (tax). But given how badly Airbnb has implemented the tax, have doubts as to how they will handle similar as guest pays up front for all fees and taxes.