File: AirbnblocalandStateTax
Compliant sent to Aribnb on 4/24/2019
TEXAS STATE & LOCAL OCCUPANCY TAXES (OT) April 24. 2019
REOMMMENDATION TO RESOLVE MAJOR COMPLAINTS RE: COLLECTING LOCAL TAX
Your handling of Local (City & County) Taxes is causing a major problem. Occupancy Tax in our area is 15% total. Our property is in Rockport, Texas. Airbnb does a great job of collecting and remitting to the Texas State Occupancy Tax of 6%. But you are totally ignoring two “Other Local Taxes Totaling 9% that is due and payable to the City of Rockport and Aransas County. We as HOST have no problem remitting the additional 9% to the proper authorities PROVIDED Airbnb collects it on our behalf, just like they do the State Tax and “Cleaning Fees” etc.
The most efficient method of resolving this issue is for Airbnb to automatically withhold the Total Tax Due of 15% from all Guest. Then, continue sending the 6% to the State and the remaining 9% would be sent to the HOST who would be responsible to remitting to the 9% to Local Taxing Authorities.
I understand the reason Airbnb is currently handling the State & Local Taxing issue differently. However, our GUEST are NOT HAPPY when they are ASKED when they move in for the additional 9% Local Taxes WITHOUT BEING ADVISED BY AIRBNB BEFORE HAND or if it is not disclosed in a Listing. Then when we have to tell them honestly that Airbnb refuses to withhold for the Local Taxes, they get even madder.
Your Airbnb staff tells me to “Raise My Rates”, obviously they are not business people. Each time you do that two things happen. First, the Guest gets punished and ends up paying more rent money. Second, they then have to pay more tax due to the increased rent. Third, a HOST’s listing becomes less competitive due to the increased daily rate. Plus, most of us have such small margin’s of profit that we cannot afford to absorb an additional 9%e
My Complaint is that first All Guest Should be Aware of the fact they will need to pay State and Local taxes and in total it will 15% in our area of the State.
Second, all Airbnb needs to DISCLOSE the Local Tax Issues Openly and up TO ALL INQUIRING GUEST so they are aware of the additional tax before they Agreed and Accept, the contract.
A Second Alternitive, just adding one additional line in the “EXTRA CHARGES” area of our Listings.
Example, under “Cleaning Fees” add additional line Item titled “Additional Local City & County”, then include the 9% total tax based on rental Fee, plus Cleaning Fees. The extra Local tax that Airbnb collects (similar to Cleaning Fees) would be remitted to the HOST, who still has the responsibility to remit to Local Authorities. Those small changes would eliminate GUEST from having to be Blind Side and Argue with their HOST’S over the additional tax issue and acusing HOST accused of gouging.
The above would solve ALL of the current Local Tax Collections Problems. It would advise the Guest Upfront of the additional required tax charges, enable the Taxes to be PAID upfront (since it would be added to the Other Charges and Collected by Airbnb). Resulting in Guest knowing up-front having review and accepting the contacts to their satisfaction.
Don Schieffer Cell 571-236-8178 Property 1010 N Austin, St Rockport, Texas