Got the below letter from the State's Department of Revenue last week.
I'd been paying income tax all along, and my city (Philadelphia) recently passed regulations requiring those of us who do short term rentals to pay the City's hotel tax, which Airbnb has recently begun collecting on behalf of hosts. The letter states that I owe back taxes for the State's Hotel tax, going back to 2013.
I wrote to Customer Service seeking guidance, and was pretty much referred to the terms of condition that state that hosts are solely responsible for obeying local laws, regulations, and for paying taxes. I absolutely want to pay whatever taxes I owe/operate within the law, but this seems excessive.
So, I now have to pay city and state hotel tax on top of income tax. I think taxes are now approaching 50% of income. Not to mention $2-3,000 in back taxes for renting out my one spare bedroom.