Sonoma County TOT - Incorrect Calculation

[Ted-and-Joanna0]

I think the tax calculation based on gross rents is being made incorrectly, resulting in owner being overcharged.

The current calculation being used is:

Tax = Gross Rent x 12%

This is not correct. Gross rent consists of 3 components:

1. Rent

2. Fees

3. TOT Tax

We should only be paying TOT tax on the rent and fees, not on that tax. Tax should not be taxed.

The correct formula for calculating rent should be:

Tax = Gross Rent - (Gross Rent/1.12)

Can someone please fix this. Owners are overpaying tax.

[David126]

@Ted-and-Joanna0

Probably best to contact AirBandB

[Tom-and-Krissy0]

Hi Ted and Joanne,

Are you using the Transaction History as your report? I have been trying to find something to use to file and not having much success. 

Also, when looking at my transaction history, the tax appears to be calculated off the rent + cleaning + host fee (not off any tax collected).

[Salvador10]

Hello community members, my name is Salvador Garcia Jr. I am the Operations Manager At Sea Ranch Lodge Vacation Rentals.  We have had continual issues with taxes and airbnb.  When we first started we were told that Air bnb does not collect transient/occupancy tax due to where we are located, but recently, within the last several months we have begun recieving reservations that have the transient tax collected(TOT) however they are not collecting all the required taxes which is causing issues with the guests.  I have tried to contact Airbnb as you may all know to NO Avail.  Our Tax rate for our rentals is about 17% and airbnb is only collecting approximatly 12% which means that i have bookers who insist that they have paid the taxes and refuse to pay the additonal taxes leaving us to hold the bag with the remaining taxes.  i almost prefered when they did not collect the taxes because then we would collect the full amount and at  least the guest was more understanding, but now my staff must deal with AirBnb guests that refuse to pay the taxes. My company will most likely be moving our business to VRBO since thier systems are easier to use and you can actually get a person on the phone when you have an issue. The utter lack of transperancy or any semblance of customer service are the primary reasons why we will be leaving this company.  What kind of business does not even have a Contact us email, i mean really

[Stacey1]

I was advised NOT to pay the 12% TOT tax because AirBB was collecting/remitting on owner's behalf after January 2017 bookings. Now the county is not receiving and I'm on the line for this.

Could someone please let me know how I get a hold of AirBB to help resolve this issue? they are collecting the tax and not paying it and now I am on the line as the homeowner?

thanks, Stacey

[Stacey1]

and my question was related to a vacation home in Sonoma county.

[Kenny43]

Hi Stacy, I'm located in San Francisco and looking to list my place in Sonoma on Airbnb. Would love to connect and hear about your experiences. I see people have had issues with the county's tax and wondering if it has been resolved. How is being a host - is it worth it? 

Thank you so much! 

Ken and Megan

[Stacey1]

Hi Ken & Megan,

Post fire, we decided to rent our home longer term to someome who had lost theirs. We are taking a much needed break from AirBB and VRBO.We did do very well renting, however, and AirBB became more of the lion's share of my business. The TOT tax thing is a pain! AirBB should be taking the tax at the time of booking, but for some cities in the county (Sonoma, the town, but I'm not considered city I'm county) was not in this algorithym. Every quarter I would have to prove that they DID NOT take the TOT out. For Sebastopol, you probably will have it automatically taken. I would for sure talk to the TOT tax people before you start though to make sure you are doing it right. You don't want them coming after your license. 

Did that help?

Stacey

[Kenny43]

Thank you Stacey. This was very helpful! Our place is county as well

[Bridget-and-Mari0]

Hi Ken & Megan, 

Hope hosting is splendid! We've been Superhosts (in Healdsburg) for 3 years, and in Calistoga for 4 years before that.  We moved to a  "tiny farm" in Sebastopol because of the sustainable agriculture and the Waldorf education community...and because it's just so beautiful here 🙂

I've signed up as a Cohost for sites in Sebastopol and help friends manage their Airbnb sites with correspondence, guest queries, decor, pet policies, and all the keen attentive detailing that makes for a warm, memorable guest experience (we're avid AB&B travelers, too:) ~~ would love to offer up encouragement and helpful hints ~~

kindly,

marianne