Tourist Tax Edinburgh

[Jude]

Hi All, so I hear that Edinburgh City Council are voting today on wether they should levy a £2 tourist tax on those visiting the city in areas of high visitor levels, this would be the irst tax of this type to be levied in the UK.  I personally think that it is a good idea but am interested on what experiences others have had on collection and declaring tourist taxes in their cities.  Looking forward to hearing your opinions.

[Steven]

@Jude Proposal has been supported. Not sure how it will be charged, but presumably all hosts will asked to declare and pay anually. 

https://www.bbc.co.uk/news/uk-scotland-47157011

[Jude]

Thank you for the information Steve.  I guess we will just have to wait and see.  I saw that they were not planning to implement the tax until next year.

[Audrey]

'How does occupancy tax collection and remittance by Airbnb work?

We automatically collect and pay occupancy taxes on behalf of hosts whenever a guest pays for a booking in specific jurisdictions.

When we automate this process, it doesn’t change which taxes are due or the total payout you receive as a host. You’ll continue to receive your payout minus the standard Airbnb service fees. Automatic collection and payment simply makes tax collection easier for everyone.'

[Jude]

Hi Audrey,  Yes I think it will be really simple to collect the tax though Airbnb, and they do not charge any commisiion on this.  What is unclear is how it will be paid over to the council and what paperwork will be required.  I suppose all will become clear in the next year, fingers crossed!

[Steven]

@Audrey @Jude I suspect nothing will change on Airbnb. We will be obliged to declare and pay the council directly and might be audited with spot checks. Obvoiusly, we will have the choice to increase our charges or not, but guests will be told that the host is responsible for paying the tax. All speculation on my part. 

[Donna]

@JudeTo answer your question, Airbnb has an agreement with my city and collect the taxes from my guests, then remit it directly to the city. It is easy for the host. With other sites I have to remit the taxes on my own, once a year after prompted to do so by email from the city, since we are also required to be licensed by the city. I doubt that it would be practical for Airbnb to do this all over the world, so want you to know that municipalities do not make it difficult for people to pay taxes. Our taxes are 14% of the rental price  as well as the site commission, so itcan go into the hundreds of dollars, but it does not stop guests from booking. If Airbnb makes the payment, they will make it easy for you to list the 2 pounds, so it automatically gets included in the final price of your listing. I'm curious, is this fee per night or per stay?

[Steven]

@Donna @Tom @Jude @Audrey Hi Donna. Thank you for the information. I guess we have to wait and see if Airbnb will colllect the tax or hosts collect and pay. The proposed Edinburgh fee is £2 GBP per night, per room and capped at £14 maximum. I have two bedrooms and most guests stay 3 nights;  therefore a modest £12 per stay. 

But there is a sting.  While the fee is small, the tax declaration will  be used to ensure planning compliance. Hosts in Edinburgh require  permission, but many don't bother. So this will be a good way to enforce planning permissions.  

[Donna]

It will even the playing field. 

[Jude]

Thanks @Steven and @Donna for your input.  I don’t think that Edinburgh’s tax will effect bookings but it is very interesting what you say about planning permission @Steven.  We only let for the summer months as my daughter lives in the apartment term time so As I understand it we do not need planning permission as we let for less than 90 days.  A lot less looking at current bookings :-( !!   

[Donna]

@Jude Wow, are you lucky! First you live in Edinburgh and 2nd you don't need licensing under 90 days. We have to be licensed just to appear on a "vacation rental" website. No one can rent short term for more than 90 days unless they own the property they're sharing. Owners can have as many guests as they want provided they are present for the STR over the 90 day limit.The only way we can rent at all without a license is to make each rental 30 days or more 

[Tom]

To All,

I am in a bind here in Austin.  Airbnb does collect a tax and pay it to the State of Texas, but, it does not collect and pay the Austin Hotel Tax.  Hotels to do not include taxes in their advertised price and neight do I want to.  If I raise my price to include that tax, I end up paying tax on that tax when Airbnb pays me.  Now my 9% Hotel tax get taxes 9%.  All local taxes here are based on what is paid out by Airbnb.  I even have to pay tax on the cleaning fee.  Makes no sense.  Let Airbnb collect and pay all taxes and let them pay me my payout.  Seems to be the right way to keep everything straight.