Taxes

[Karen141]

Is there anyway AirBnb can add a place for us to charge taxes, like hotels? Denver will be starting to charge a 10.75% lodging tax. Personally, I'd rather my guest pay it. It's no different than going to a hotel; the guest pays taxes. I'd suggest a spot where hosts can add an amount to a stay, even if a flat rate, like the cleaning fee. Any thoughts on this?

[Travis5]

Hi Karen

We have the same issue here in Palm Springs: an 11.5% occupancy tax on short-term rentals. Since there's no way to add it as an additional expense ( like cleaning fee), Airbnb advised me of my options when I contacted them for advice:

1. Build the tax into your nightly rate (downside: your nightly rate will be inflated in search results)

2. Collect it when guests check in (okay, but sounds dicey and not a good customer experience)

3. Send the guest a Special Offer Rate with nightly rate, cleaning and tax all bundled (but make sure you spell this out in your listing)

We do the third option and while it requires more steps and sometimes additional explanation to the guest, it by and large works for us. 

Hope that helps!

[Pamela61]

I like your third option, but are you able to do that with Instant Book?

[Brian60]

In my state of S.C. ABNB pays the State but they DO NOT pay the county & City Accomodation tax, I am responsible for the 2 other tax agencies. If ABNB wants to do us a favor & pay taxes for us Hosts they need to pay all applicable tax agencies as well. They are doing this kid of half-assed in my state.

[Jason74]

I could see some of this being an issue for some people as the "additional income ( the tax monies ) could alter their tax bracket . I also believe you Are wrong about the lodging taxes ( currently the going rate is 14.75% ) I will call my city council member to get clearificatuon .

[Pamela61]

What did you learn re: the rate? I know that as of Dec. 31 last year, we have to have a license now and Lodging Tax ID. Thought the Occupancy Tax was 10.75%, but would love to know what you learned. Also, isn't there supposed to be some place to put our license number now? Ye gad, I hope I'm not the only one in Denver doing this!!

[Pat271]

Brian60, what do you pay the county?  I thought the state distributed taxes to the counties, unless you are talking about the Hospitality Tax (prepared meals and beverages only).  This is what I read for the City of Greenville:

Hospitality Tax = 2% tax on all prepared meals and beverages sold in the City.

Local Accommodations Tax a.k.a A-tax = The rental of transient accommodations (hotels, rooms, campgrounds etc.) is subject to a 3% tax here in Greenville.

State Accommodations Tax = a 2% tax is imposed on all accommodations in the State of South Carolina. These monies are collected by the State and distributed to counties and municipalities.

[Mike77]

I have to pay the county taxes based upon the income each month.  Each month I have to figure out the taxes and send them a check and a filled out form.  AirBnB says they are paying some sort of State Tax, but I have no way of knowing if they really do, or if it is for my name or all the people in Oregon lumped together that are doing AirBnB.  It seems like a very "half-assed" way to do the taxes.

Mike

[Dick-and-Ulli0]

Having AirBnB collect occupancy taxes is a good thing.  Until it goes all wrong.  We're finding, along with many hosts,  that AirBnB's mapping isn't so good and that many listing are being put into the wrong jurisdictions.   And good luck on trying to get AirBnB to correct errors or reimburse for taxes paid to the wrong county, city etc.    We've been trying for 8 months to get them to update a listing with all the proper documataion.   Seems they just don't know how to read maps in the tax department.