West Marin, CA Hosts: Problem with New 2019 14% Transient Occupancy Tax (TOT)

Jeff-and-Pam0
Level 4
California, United States

West Marin, CA Hosts: Problem with New 2019 14% Transient Occupancy Tax (TOT)

We have learned that the Airbnb platform failed to update its platform to collect the 14% TOT beginning 1/1/19. We had bookings made as late as 1/19/19 which still only collected the old 10% tax. We brought this to Airbnb's attention and it was suggested that hosts send a Request Money to guests in the Resolution Center for the additional 4%. This is problematic for two reasons: 1) Requesting money post-booking does not make guests happy, 2) Airbnb's delays affects numerous hosts. (Several of our guests who were undercharged have already checked out.)

All West Marin hosts received a letter from Marin County stating that Airbnb would be calculating and collecting the new 14% tax for all bookings made afater 1/1/19. Somehow, Airbnb didn't make the deadline yet failed to notify West Marin hosts. We have asked Airbnb to take responsibiity for the delay and contact all West Marin guests to collect the extra 4% tax. If the correct tax is not collected and paid to the county, the numbers will not match. In other words, your Airbnb gross earnings report that you must submit monthly will require more tax than was actually collected and underpayments create penalties. 

Since hosts are not allowed to see what the guests have paid (we only see the host payout), it is difficult for a host to know which bookings made after 1/1/19 collected only 10% tax. So far, Airbnb has not told us when the platform was finally updated. We only discovered the problem because we had a complex issue with one guest and in reviewing the numbers with a case manager, the error was discovered. 

As of today, 2/11/19, Airbnb is collecting the correct 14% TOT ... we encourage all West Marin hosts to report the problem too as perhaps "strength in numbers" will encourage Airbnb to implement a wide-scale solution for hosts and at the same time, an easy process to collect the extra 4% from guests who were undercharged; one that doesn't compromise the host/guest relationship. This is preferable to having each individual host become a tax collector. 

Welcome your thoughts!  Please contact Airbnb and we should also notify Marin County. Thank you. 

5 Replies 5
Zoe166
Level 1
San Francisco, CA

Interesting.   I have been having the same problem and everytime i reach out to support they dont seem to know the answer . who did you speak to to make sure the correct % was charged?  thank you , Zoe 

What about the rest of Marin, for example San Rafael for taxes?

Thank You,

robert

Lisa972
Level 2
Mill Valley, CA

I'm in Marin also and hate having to do the return, even though Airbnb reports and pays the TOT.

Does anyone know where the report lives on Airbnb's site that list the TOT? It is extremely hard to find, but it exists. I have to download this to attach with my return and can't find it. What a pain!

 

Melissa-And-Bruce0
Level 1
California, United States

I have been receiving letters regarding reporting

and requested payments for TOT from the County Finance Dept., and am now receiving harassing phone calls and emails from someone by the name of  Larry L Hampton-Pratt who is extremely rude and uneducated apparently. We have never had any issues and report all of the earnings on taxes so I’m not certain as to why they are going back in time and saying that money is owed. 

Kevin1056
Level 6
Los Angeles, CA

Just ask the guest to pay it... Don't make a big deal of it. I had a guest not pay taxes when he booked I sent an email to him and told him. That's he owed $128 in taxes due to an Airbnb error,, and he paid it he had $13 people so in was like $10 each.