Texas Hotel Taxes

[Greg192]

WOW!  We just discovered AirBnB is collecting Hotel Taxes for the State of Texas.  The Texas Comptrollers office confirmed AirBnB has been doing this since May 1, 2017.  We were not notified, and cannot find any communication from AirBnB on this process.

Hence, we've paid Hotel taxes twice, and now have the onerous task of recalculating and resubmitting corrections.

On top of that, only AirBnB is doing this.  Our listings on other sites are not.  We are left to sort this out.  

One property is listed on two sites including AirBnB listing, and we have to sort out which booking have taxes paid and which do not.

AirBnB sends Texas one check for a jurisdiction, without property or owner identification.  The State of Texas does not know that there are taxes paid on our behalf.  We could be at risk.

There is no way to Opt Out of the AirBnB tax collection and payment.  They have a contract with the State of Texas.

The Guests are essentially paying taxes twice because we set rates to include Hotel Taxes.   

We are totally baffeled by the mess AirBnB has created.

OH, there is more to the story when it comes to the IRS.......

[Dede0]

If your listing was active on AirBnB back in March/April/May of 2017, AirBnB sent multiple notices to hosts informing them of this change. If you didn't "notice" those notices, then... well... what can I say?

Also, the fact that some of the other sites you list with don't also collect/pay Texas taxes is hardly AirBnB's problem to solve or even care about. Your issue should be with those other sites, who are the ones making it difficult for you.

I'm no huge fan of AirBnB (read my many other posts and comments to verify that), but your complaints seem especially "precious" to me.

You just might need to put in some "homework" time and figure this sh*t out. Sorry to seem negative, but you're just way too precious and over the top.

[Mary-Bell0]

Does this mean that Airbnb gets credited with the taxes paid on our bookings?  I have an account with the Texas Comptroller for Franchise Taxes.  I've been all over the state website and cannot find where we are being credited with the state taxes.  Airbnb says they collect and pay those taxes "on your behalf" but they never asked for our account number to credit them to.  I have to also pay local Hotel Occupancy Taxes to my city (7%) out of our net income because Airbnb isn't collecting that.  Do we have to pay the state twice?

[Dede0]

You do NOT have to pay the state tax. AirBnB *is* paying it. Don't worry about it. AirBnB and the state came to an agreement. You won't be billed or bothered by the state.

[Gina212]

The State still sends out the forms and you have to file the report but not pay(per airbnb agent). The State receives one lump sum from Airbnb without any designation of payment made by a person. I paid 4Q2017 and there is no record that Airbnb has paid it on my behalf. I fear that if I don't pay it how will the State know that it is paid on my behalf. This is why the City of Austin will not allow Airbnb to do this. Airbnb "Tax Team" has not returned any of my emails/phone calls for several days. Any suggestions on how to get proof of payment from Airbnb?

[Letti0]

@Gina212 You have the proof on your profile. From your home page click on Progess then click on Earnings. Scroll down to Transaction History. On the upper right hand corner click on Gross Earning and you will see all the taxes AirBnB paid Texas. Print it off monthly and keep a copy with your Texas filing every month as your proof of payment.

[Gina212]

@Letti0Ok, good idea.

Thank you!

[Jane788]

Thank you from me too!

[Karen769]

I just received a letter yesterday from the City of Fredericksburg, Texas stating that I have to get a permit of 150.00/year as well as pay 7% city Hotel Occupancy Taxes.  Airbnb does not collect those taxes.  I have had guests come and go and I have not collected the taxes from them as I did not know I was supposed to.  I am trying desparately to figure out how to moving forward collect those 7% taxes.  I hate to go back on each guest and tell them that they now owe an additional amount and I don't know how to get the money from them moving forward.  Any help would be appreciated.  Seems I will have to get a little creative somehow. 

[Letti0]

@Karen769 Build it into your rate. Yes it's double taxation, but you're covering your costs. I'm also in Texas San Antonio area, if you list on other sites and pay state, county and town taxes the reports to the state will be different than you county and town. Make sure to print off the gross earnings page per month from AirBnB and keep a hard copy with your monthly tax documents to prove that the state was paid.

[Annette41]

Mary Bell, how do you collect hotel tax from guest?

[Letti0]

@Annette41  Since I only have to pay Bexar County 1.75% as I am in an unincorporated area, not San Antonio's 9% also, I just build it into my price. At 10.75% I would put it in your rules and things a guest must acknowledge that you will send a request for the taxes due to Bexar County and the city of San Antonio after the reservation is confirmed. Otherwise your rate will knock you out of the playing field of your competition who are probably collecting it the same way. 

[Richie21]

@Letti0 I am also in Bexar County but in San Antonio city limits.  I know Airbnb remits HOT tax on our behalf for the State of Texas but do they also do the county and city taxes as well?

[Rebecca181]

@Mary-Bell0 @Greg192 @Dede0 When I look at my ABB Gross Earnings report I am able to see the amount of Occupancy Taxes (County / State - I am outside of City lines) ABB paid on my behalf.  So if I was ever contacted by either the County or the State, I can show them this report. I am exporting / downloading each year, just to be on the safe side, so that I have a record to refer to.

[Mary-Bell0]

Yes, I see that and I've downloaded it and saved my 1st quarter report in Excel.  But on mine it duplicates some of the Occupancy Taxes paid (lists them with the Co-hosts cleaning fee and my income for each booking). I'm also doing my own separate Excel spreadsheet.  But there should also be a way of checking at the Texas Comptroller's website for the payments made on behalf of my LLC.  I already had an account there due to to Franchise Tax reporting requirements, but there's no way to verify they properly credited us with the Hotel Occupancy Tax too.  Airbnb should have a way for you to enter your Tax ID with the state that they are attaching the payment to, but there's no option to tell them the account number.