colorado taxes

[Jenna68]

hello!

i know that airbnb charges an occupancy tax to the renters.  does that affect anything when i submit my taxes?  do i just submit all of my earnings?   or are the occupancy taxes they charged cover any taxes i would have to pay?

thanks!

[Amy38]

You only report rental amounts you receive...not the service fee which Abnb takes....that is not part of your income.  If abnb collects the tax, they pay the tax.

This collection by them is new to Nashville and I will just file 0 income for the state revenue so as to keep my sales and use license which lets me buy bulk products tax free.

This is 0 with the state collection agency, not the Fed income tax.

[Jenna68]

thanks! shouldnt i have a 1099 or something? i tried looking on the airbnb site, and all i found was an earnings summary.  thanks!

[Raf3]

@Jenna0 I wrote about ABB taxes here and have a post on Colorado (I help people do their taxes). Just to clarify for Federal purposes any amount received by you is gross income. If you received the tax as part of your rate (but AirBnb collected and remitted it) you still received it - the platform just did it for you. The tax paid by AirBnb is then a deduction. The platform fee is a deduction.

[Rebecca181]

@Raf3 @Jenna68 When I look at my gross earnings which are used for tax reporting purposes it does not include the occupancy taxes that Airbnb collected and remitted on my behalf. So I will not be deducting those, as I never received them and they are not included in my gross earnings. I will be deducting Airbnb's service fees, however. Raf, now I wonder if I am misunderstanding something. I have double-checked with my actual bookings and pay-outs and the occupancy taxes are not reflected in these, nor in my gross earnings. Am I missing something? This is my first year and I meet with my CPA this Friday so want to be sure I did things right!

[Raf3]

@Rebecca0 correct AirBnb reports do not include occupancy tax collected. I think from a practical standpoint (interest and penalties) it doesnt matter if you just report to the IRS the net of tax revenue number since you are entitled to the deduction for the occupancy taxes anyway. Just understand AirBnb is basically acting like an escrow provider so you do in fact receive the tax money for your benefit, its just remitted to a third party for you for convenience. Paying occupancy tax is ultimately your responsibility. Half of the conversations on this forum are about figuring out occupancy tax. It helps if you split it out on your reservations. Your CPA should be doing all this for you.

[LuAnn3]

If Airbnb is acting as an escrow provider.......where do I see what they are escrowing and what they are paying on my behalf?  I am paying sales and occupancy tax to the state of Colorado because I can't find on the Airbnb site what they are supposedly collecting and remitting for me.  I think it is getting paid twice!

[Linda1354]

LuAnn I have the same question did you ever get clarity on this? They say they collect accomodation tax and special assessments in Colorado but you can't see that on the interface with the customer. I use VRBO and I have to pay all that but I control that through the quote and invoicing process so I can see it. I can't find any proof that AirBnb is doing this for Breckenridge,Colorado. 

[Mark1175]

Jenna, did you get clarity as to if you need to submit the Colorado DR 0100, quarterly sales tax form?  I understand that there are two tax implications; earnings and sales.  For the latter I am not sure where we find what was submitted on behalf by ABB in order to make sure I am comliant. Any suggestions are apreciated. 

Thank you, 

Mark 

[Jim426]

Hi Mark,

It is my understanding that you do need to file the CO DR 0100.  Airbnb collects and remits the  State Sales Taxes.  At least they do in Denver where my rental is and the State Sales tax rate is 4%.  Airbnb also collects and remits the 10.75% Denver Lodger's Tax.

I had to file the my City taxes with Denver even though I did not owe any because Airbnb is remitting them.  I was told to enter in "0" for the gross receipts or earnings.  The form autofills what you owe based of this so my taxes owed showed "0".  This way I am able to file but don't have to pay.

I assumed the State filing was similar and I filed my DR 0100 in a similar fashion so that the taxes owed showed "0".   This is my first filing so I guess I will hear from the State if they have any questions.  Good luck!

I came across this information in my research.    It is an excerpt from a discussion in this link:

https://community.withairbnb.com/t5/Hosting/Airbnb-remitting-taxes-for-Colorado-rentals-on-host-s-be...

(3) For me, I dont have a sales tax license yet, so I wanted to know if I even needed one.  Clearly, this just rolled out on 2/1/2017 and its very new to them too, as the representative had me on hold for 10-15 minutes while checking with her supervisor.  The State came back and told me that I did need a sales tax license number, and I still needed to file quarterly.  When I questioned the logic, considering that I will not be remitting any tax funds, the rep explained that there is a section to complete on the returns that indicates 'sales to other licensed dealers'.  I will write the entire amount that Airbnb should be remitting on that line and still submit the return each time.  In addition, if I decide to rent outside Airbnb, this will give me the ability to still remit taxes (since Airbnb is really the only site offering to remit on behalf of hosts at this time).  I did still press for an answer as to how me completing the form really has any impact since I am not remitting funds and Airbnb will not be submitting with my state tax license number, and I got a very generic, "it will help us track".  Maybe they use the property address to match records?  I did not think to ask at the time.

[Melissa815]

Jim, 

I just found your converstion from last Oct. on the sales tax license. Did you end up getting one and filling out the CR0100? If so did you go to the secretary of state site to register a business name?

I am confused by this as it is not a business. We only rent our property 5 times a year. I don't necessarily create a business. 

Any advice?

Thanks ,

Melissa

[Letti0]

@Mark1175  Clik on your Profile picture then Transaction History. On the right hand side you will see a green Gross Earnings Link click on that you will see what AirBnB has paid. 

Occupancy tax collection and remittance by Airbnb in Colorado

State of Colorado

Guests who book Airbnb listings that are located in the State of Colorado will pay the following taxes as part of their reservation:

• Colorado Sales Tax: 2.9% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Colorado Department of Revenue Sales Tax Publication.
• County Lodging Tax: The county lodging tax rate varies by county. The rate is typically .9-2% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Colorado Department of Revenue Sales Tax Publication.
• Local Marketing District Tax: The local marketing district tax rate varies by district. The rate is typically 1.4-4% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Colorado Department of Revenue Sales Tax Publication.
• Local Sales Tax: The local sales tax rate varies by city and county. The rate is typically 1-5% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Colorado Department of Revenue State-Collected Local Sales Tax Publication.

Basalt

Guests who book Airbnb listings that are located in the City of Basalt, Colorado will pay the following tax as part of their reservation:

• Lodging Tax: 4% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, please visit the City of Basalt Finance Department website.

Boulder

Guests who book Airbnb listings that are located in Boulder, CO will pay the following taxes as part of their reservation:

• Boulder Short-Term Rental Accommodations Tax: 7.5% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Boulder Short-Term Rentalswebsite.

Carbondale

Guests who book Airbnb listings that are located in Carbondale, CO will pay the following taxes as part of their reservation:

• Carbondale Sales Tax: 3.5% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, visit the Carbondale website.
• Carbondale Lodging Tax: 2% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, visit the Carbondale website.

Colorado Springs

Guests who book Airbnb listings that are located in Colorado Springs, CO will pay the following taxes as part of their reservation:

• Colorado Springs Lodgers' Tax: 2% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Colorado Springs Lodgers and Campgrounds Rental Tax guide.
• Colorado Springs Sales Tax: 3.12% of the listing price including any cleaning fee for reservations 29 nights and shorter. For detailed information, visit the Colorado Springs Sales Tax website.

Cortez

Guests who book Airbnb listings that are located in the City of Cortez, CO will pay the following tax as part of their reservation:

• Cortez Sales Tax: 4.05% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, please visit the City of Cortez Tax website.
• Cortez Lodger’s Tax: 2% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, please visit the City of Cortez Tax website.

Denver

Guests who book Airbnb listings that are located in the City and County of Denver, CO, will pay the following tax as part of their reservation:

• Denver Lodger’s Tax: 10.75% of the listing price including any cleaning fee for the first 29 nights of any reservation. For detailed information, visit the Denver Treasury Division website.

Durango

Guests who book Airbnb listings that are located in Durango, CO will pay the following taxes as part of their reservation:

• Durango Sales Tax: 3% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, visit the Durango Finance Department’s website.
• Durango Lodging Tax: 2% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, visit the Durango Finance Department’s website.

Frederick

Guests who book Airbnb listings that are located in the Town of Frederick, CO will pay the following tax as part of their reservation:

• Frederick Lodging Tax: 4% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, visit the Town of Frederick Finance Department website.

Golden

Guests who book Airbnb listings that are located in Golden, CO will pay the following taxes as part of their reservation:

• Golden Sales Tax: 3% of the listing price including any cleaning fee for reservations 28 nights and shorter. For detailed information, visit the City of Golden Sales and Use Tax website.

Loveland

Guests who book Airbnb listings that are located in the City of Loveland, Colorado will pay the following taxes as part of their reservation:

• Lodging Tax: 3% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, please visit the City of Loveland Finance Department website.
• Sales Tax: 3% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, please visit the City of Loveland Finance Department website.

Pagosa Springs

Guests who book Airbnb listings that are located in Pagosa Springs, CO will pay the following tax as part of their reservation:

• Lodging Tax: 4.9% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, please visit Pagosa Springs Lodging Tax website.

Steamboat Springs

Guests who book Airbnb listings that are located in Steamboat Springs, CO will pay the following taxes as part of their reservation:

• Steamboat Springs Public Accommodations Tax: 1% of the listing price including any cleaning fees, for reservations 29 days and shorter. For detailed information, please visit the Steamboat Springs Tax Information: Accommodations guide.
• Steamboat Springs Sales Tax: 4.50% of the listing price including any cleaning fees, for reservations 29 days and shorter. For detailed information, please visit the Steamboat Springs Tax Information: Accommodations guide.

Snowmass Village

Guests who book Airbnb listings that are located in the Town of Snowmass Village, Colorado, will pay the following tax as part of their reservation:

• Town of Snowmass Village Lodging Tax: 2.4% of the listing price including any cleaning fees, for reservations 29 days and shorter. For detailed information, please visit the Town of Snowmass Village Sales Lodging Tax website.
• Town of Snowmass Village Sales Tax: 3.5% of the listing price including any cleaning fees, for reservations 29 days and shorter. For detailed information, please visit the Town of Snowmass Village Sales Lodging Tax website.

Timnath

Guests who book Airbnb listings that are located in the Town of Timnath, CO will pay the following tax as part of their reservation:

• Lodging Tax: 3% of the listing price including any cleaning fees, for reservations 29 days or shorter. For detailed information, please visit the Town of Timnath Finance Department website.

Windsor

Guests who book Airbnb listings that are located in the Town of Windsor, Colorado will pay the following tax as part of their reservation:

• Sales Tax: 3.95% of the listing price including any cleaning fees, for reservations 29 nights and shorter. For detailed information, please visit the Town of Windsor website.

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Find out more about how occupancy tax collection and remittance by Airbnb works.

Note: Hosts located in these areas are responsible for assessing all other tax obligations, including state and city jurisdictions. Hosts with listings in these areas should also review their agreement with Airbnb under the Terms of Service and familiarize themselves with the Occupancy Tax provisions which allow us to collect and remit taxes on their behalf and explains how the process works. Under those provisions, hosts instruct and authorize Airbnb to collect and remit Occupancy Taxes on their behalf in jurisdictions where Airbnb decides to facilitate such collection. If a host believes applicable laws exempt the host from collecting a tax that Airbnb collects and remits on the host's behalf, the host has agreed that, by accepting the reservation, the host is waiving that exemption. If a host does not want to waive an exemption the host believes exists, the host should not accept the reservation.

https://www.airbnb.ca/help/article/2298/occupancy-tax-collection-and-remittance-by-airbnb-in-colorad...

[Leah31]

Has anyone needed to get the Sales Tax License account number that Airbnb uses?  When Airbnb first starting collecting and remitting for us I had called the State of Colorado and they said I didn't need to include that income to pay taxes because Airbnb does it for me.  I also use VRBO so I just report and pay those taxes.

Now Summity County is requiring a STR permit to be able to rent out your house.   Well you need the sales tax id number to put on your permit.  I called Airbnb and they said they don't have this information that I had to call the state.  Really?  You're paying on my behalf but you don't have the id number you use.  Anyway, I've emailed the state and no response back yet.  I've tried to call three times and I get "due to the high call volume we cannot answer your call" and the state hangs up.

Just curious if anyone has been successful in getting this info and how did they do it.

[Peter1365]

Leah,

Get your own CO sales tax license (not airBnB's sales tax license) for filing the DR0100 and remitting the sales tax from the VRBO bookings.  Then you will have a sales tax license for your STR permit.

Hope this helps.

Pete

[Heather673]

Yes,

If you go to this link http://www.summitcountyco.gov/1251/Tax-Information, under the

axes.

STR Owners Who Use Airbnb Only click the email  us link and they will auto-respond with the sales tax number. The sales tax account name is Airbnb and just need to fill in with their phone number and an email you can find.