Why does Airbnb collect tax for some areas but not others?

Midori2
Level 3
Menlo Park, CA

Why does Airbnb collect tax for some areas but not others?

Isn't that unfair that Airbnb takes care of tax collection if your place happened to be in the area that Airbnb collects transient tax from the guest, but if your place is in the area Airbnb does not collect ToT, you're on your own to figure out and Airbnb doesn't even try to help you figure it out but simply says, "You can add it to your nightly rate, or collect cash from the guest?"    At the same time, Airbnb keeps pinging me that I should reduce my rate to attract more guest?  If I increase my rate, that would impact the attractiveness of my place, while, I would only be collecting the tax for the city/county.   When you search for a hotel, the rate advertise does not include local tax - why should I?  Airbnb UI has a place to put Resort Fee, Community Fee, Management Fee, as an optional fees, but not Local Tax.  Why is that so difficult for them to add "Local Tax" in the drop-down?  My place is located in San Mateo County, California.

1 Reply 1
Emiel1
Level 10
Leeuwarden, The Netherlands

@Midori2 

In my part of the world Airbnb provide an option to add several local taxes.(it's under "local law") 

For some reason this feature is not available in (for example) US or CA (what i have learned from the communtiy). If Airbnb is collected tax, then they have an agreement with local authorities to do so.

They are all listed here:

https://www.airbnb.com/help/article/2509/in-what-areas-is-occupancy-tax-collection-and-remittance-by...

 

The "pinging" to reduce your rate is an annoying habit of the platform, which experienced members don't take serious, so better ignore those blurbs from the software. It has no relation with the "tax" issue.

 

Best regards,

Emiel