Occupancy Taxes?

[David3394]

Occupancy Tax is killing our listing!

If AirBNB is collecting and (likely) not actually paying the tax to the jurisdiction, would you please lower your service fee to help the host to be competitive? This new addition to the total price is VERY disappointing.

We are NOT a hotel... it's a peer-to-peer network. Hire a creative tax attorney who has some guts. Stand up for the hosts. Don't cave. This is a serious issue that has not really been resolved.

[Alice-and-Jeff0 · Accepted solution]

@David3394 - Airbnb is paying the occupancy tax to the jurisdiction or else they would not be allowed to do business there.  It's usually a part of the deal they make to not be shut out.  Unfortunately, "occupancy tax" has nothing to do with being a hotel, it has everything to do with being a "tourist tax" - so people visiting the area who use the roads, the utilities, the city-sponsored and subsidized parks, etc. - who do not pay property or income tax to the area - are charged for this.  Think of Las Vegas, Charleston, Washington D.C., any location where tourists outnumber the residents, this helps keep the area in good condition for all the extra "use" where regular taxes do not cover it.  It helps keep all areas ready for the next tourists.  

[Willene0]

Airbnb charges my guest occupancy tax, where does that money go? Do I have to report it on my state taxes? Does the state know this is being charged? Airbnb says they submit it but to who?

[Willene0]

I live in Montana, and pay quartlery taxes and then another tax I don't even know what it is. Ther is no where on the form to account for the occupancy tax. Anyone from Montana that can help me with these taxes?

[David-And-Shari1]

Good question!  

I guess we are treated as employees of AirBNB and they are responsible for paying and filing the occupancy taxes for doing business in our counties or cities.  In my billing it does show the charge for "occupancy tax" and the percentage does match my county lodging tax.    It's nice that airbnb takes this out but so far six months into to this adventure i have no proof they are actually paying the county unless they send me a tax form receipt at the end of the year. 

[Karol22]

If Airbnb is collecting the Tax and paying the Tax Authority, then this transaction is between Airbnb and the Tax Authority. In such case, you don't have to report these taxes since they are never deposited into your bank account. This is quite literally a deal Airbnb made with the Tax Authority in order to operate in the area.

You may have the option to collect the Tax from Airbnb and submit to the Tax Authority yourself, in which case you would need to report to the Tax Authority yourself. This would be additional paperwork on your part but at least you have more control over the tax funds.

[Tracy764]

So does this mean hosts do not have to add an additional charge to the guest's payout if the county does not require additional local fees?

[Joy247]

They collected mine for over three years and I just found out they never paid them!,,,,

[Sujey-And-Michael0]

I have been trying to get some answers on the taxes they are withholding from me. I have talked to 6 people now and they all just give me some cookie cutter answers. I told them that I know they must withhold 20% in ISR and 1% VAT but I want proof that they are submitting these to the proper tax authority (in this case it would be the SAT in Mexico). They keep telling me to look at my transactions and payouts...I said that only shows that you are withholding money from me, not that you have submitted the money. I asked where they are submitting the money and they said your local tax authority. I said ok and who is that. I mean if they are submitting it then they would have that info but nobody will say they just keep repeating the same respnses that deflect from my questions. So frustrating. There has got to be a better platform to use. Im just going to bug them everyday. My last message I requested to speak to someone from their tax dept. I havent heard back.

[Jane3328]

@Sujey-And-Michael0 I've been in the same boat in FL.  In addition to getting nowhere with Airbnb, the State of FL can't tell me anything either.  One would think they could look up your property and see what's been paid in taxes for it.  Makes me want to re-evaluate this entire venture of renting out...... 

[Katie1064]

There is a helpful article on Airbnb if you Google Occupancy tax collection and remittance by Airbnb in Florida.  Check it out.

I was told by an Airbnb Community Support member that taxes collected from guests by Airbnb are remitted in a lump sum that represents all hosts in the area.  They do not put personal information on the return.

You can print out your Transaction History and give a copy to your accountant at tax time.

[Joseph1765]

I'm in the same boat,  taxes collected and local tax office never received anything.

[Hugo-And-Erica0]

I'm racking my little head over this...
Issue is around the TAX reporting. I just found out that AIRBNB is only taking STATE TAX. Our listing also has an additional 7% city and 2% county FML... so in your experience when choosing TAX COLLECTION OPTIONS from the site: If you Custom your tax elections will Airbnb have you assume the job of also paying for the state, becasue I removed the status from default to custom? Ideally I want to have AIRBNB continue to pay for the state and I pay for the city/county.

[Katie1064]

In what city and state are you located?  If you haven't already done so, check with your city and county about their relationship for taxes with Airbnb.  Some will tell you that they receive taxes from Airbnb in a lump sum so they cannot specifically allot amounts to individual owners.  It's a very confusing situation for all of us who rent.  Good luck.

[Kristal27]

I'm trying to avoid this happening as a new Airbnb host. I realize this is an old post but I can't figure out how they are calculating my taxes which are way under what they need to be for my first two bookings. I'm hoping my new host status will help with getting some support. Thank all of you for the conversation.