florida sales tax

[Ogi-And-Raj0]

Dear Community,

AirBnB announced that, happily, they will be collecting FL sales tax as of December 1. I have several clarification questions:

1. Will collect money on all bookings physially made after December 1 or on all booking that start after December 1 even if they had been made prior to that day? If only the first, that could prove to be very confusing since I have a bunch of bookings for up to July 2016, all made before Dec 1. How are we going to differentiate what to pay?

2. Are the state taxes going to be passed completely onto the clients and not to us? In other words, I do not have to worry about filing state taxes on Airbnb bookings anymore?

While I applaud the decision to help with state taxes, any further instructions would be terrific. Thanks!

[Clare0]

You'll need to contact Airbnb for detailed answers to your question.  I had the same situation in my county in California where they instituted a new tax beginning July 1.  In my case the tax went into effect for reservations made after July 1.  Since Airbnb collects the money at the time the reservation is made, it would be difficult to collect the tax retroactively.  In my case if a guest made a rdeservation on June 15 for a stay on July 15, I didn't have to pay the new tax.  Again, contact Airbnb and/or your local authorities to get the definitive answer for your state/locality. 

[Karen1]

@Ogi-And-Raj0,
I have the same concerns. In FL we are supposed to send in a monthly tax return even if no tax was collected that month. I have bookings that were made before December for early 2016. I assume I have to collect and pay the tax for those bookings, so I will have to keep reporting to the state until all of those bookings are complete. But what about after that? Do I close down my FL tax account? It sure would be helpful for Airbnb to give us guidance. I called the super host phone number and the CX was trying to be helpful but all she could do was read the email that all FL hosts received. No new information was available. Have you received any insight?

[Ogi-And-Raj0]

@Karen1,

We have not heard anything, but based on general logic and the answer above, I think they will do so literally for reservations made after Dec 1. I presume they will use their own group license to file for the property. Your license gives you the right to rent out your place, not just to pay taxes, so you will keep yor license as is. 

[Sherban-and-Barbara0]

I have the same questions as you all. I would expect to receive a report of  all taxes submitted to FDOR on my behalf from Airbnb every month. I could not find anything related to payed taxes in my account or could not get any answers from their reps. I am still waiting to get clarifications.

[Anthony45]

Airbnb does not care about us LEGAL property managers, They make millions from illegal renters. I am DONE with airbnb

[Bert13]

Ok......... if you are done with airbnb... who are you using?... VRBO is now implementing a required online booking and the fees they are charging guests is through the roof, in addition to having to sign up with them at $399/year for each property.

[Marie1443]

Booking.com, Expedia, and Trip advisor all do business legally.  

[Anthony45]

Nobody tells you ANYTHING. Airbnb has created a DISASTER for legal property managers to appease stste and local governments at OUR EXPENSE

[Ed-and-Hugh0]

If a guest tries to make a reservation, they will see a tax line item. There is a question mark they can click on for details. Here is the info Airbnb Provides.

"How do taxes work for guests?

There are a few instances where an Airbnb guest may need to pay tax.

Some hosts are required by their local regulations to charge a tax. We recommend they include the tax in the price of the reservation, but some may require the tax to be paid directly upon check-in. We ask that hosts explain any taxes they may be required to collect in their listing description and their communication with guests prior to booking.

In some locations, Airbnb has made agreements with government officials to collect and remit local taxes on behalf of hosts. The taxes vary and, depending on the local law, may include calculations based on a flat rate or percentage rate, the number of guests, number of nights, or property type booked. When you book a listing in one of these locations, the local taxes will be displayed automatically when you pay and appear on your receipt once your reservation is confirmed."

This would only impact reservations made after Dec. 1. They can't go back in and change a previously agreed upon contract.

[Karen1]

There is a lengthy but interesting discussion on this subject at the website Air Hosts Forum dot com. Search Tax Collection in Florida. Basically, I learned that I should still report my transient rental income each month, but indicate the sales amount that Airbnb collected tax for in the Exempt Sales column. Then for those bookings made before the December 1 cutoff, I would submit the tax I collected (and not Airbnb) as I normally would. Hope this makes sense.

[Anthony45]

YOU are responsible for the tax payments, not airbnb. What if they miss a payment? Where is a report to see what they are reporting to the taxing authority????

They did not care enough about us LEGAL property managers 

[Karen1]

@Anthony45, @Ogi-And-Raj0, @Linda92, @Clare0, @Ed-and-Hugh0

Please know that this issue has been very confusing to all of us, especially since staffers at the Floridia Department of Revenue originally had no clue what agreement Airbnb had with the state. However, after several discussions back and forth, with both the DOR and Airbnb, here is the end result:

For Florida State Tax, you do not need to report any Airbnb earnings to the state, therefore you do not have to report any taxes to the state. Airbnb is paying this tax in a lump sum for all Florida Airbnb revenue. If Airbnb is the only short-term rental you receive, you can inactivate your State Sales Tax account. 

Here is the exact quote from the DOR Tallahasse's office received on 1/26/16: "The Department of Revenue has received your email regarding your transient rental which is being handled by AIRBNB.  There is no obligation for you to be actively registered for your rental location due to the agreement between AIRBNB and DOR. I have inactivated your sales tax account effective 12/1/15, the date of your contract with AIRBNB.  If anytime in the future you end your contract with AIRBNB, your account can be reactivated."

Now for your local government.  Airbnb is paying Occupancy Tax in some Florida counties and not in others. You will have to find out if your county is on their list. Search the Airbnb Help for Occupancy Tax Collection.  They don't pay taxes in my county, so I can only ASSUME that if they pay taxes for your county, then you do not need to report the Airbnb income.  But, I suggest that you contact your local govenment to find out what they require. 

Here is a direct quote from Airbnb received on 1/28/16:  "While we are not providing local governments with user information when remitting Occupancy taxes, your Transaction History dictates the amount we remit on each reservation. This is what you can submit to your local government with your Tax ID for whatever reporting they require. To find this information, go to Account > Transaction History > Gross Earnings. You can toggle the year and months at the top of this section for the period needed."

Good luck to all hosts! - Karen

[Chris-and-Lauren0]

Thank you so much Karen. This is been weighing on my mind for a long time, your post made it very clear in a way that I could understand. Thank you for taking the time, and dedicated diligence to finding out answers that we all were asking. All the best – Chris

[Karen1]

@Ogi-And-Raj0, @Ed-and-Hugh0, @Sherban-and-Barbara0

Yes, we are to report our sales income on bookings made before December 1, 2015 because Airbnb did not or will not collect taxes on the those. However, how are we to report income on the our transient rental sales that Airbnb is collecting tax for?  Here is what the tax help article says at  www.airbnb.com/help/article/1036/how-does-occupancy-tax-collection-and-remittance-by-airbnb-work  :

"In areas that Airbnb has made agreements with governments to collect and remit local taxes on behalf of hosts, applicable local taxes are calculated and collected from guests at the time of booking. No action is needed from the host. This doesn’t change which taxes are due, but automating the process makes tax collection easier for all parties involved."

I have a hard time believing that NO ACTION is needed from the host here in Florida. I have messages and questions into both Airbnb public policy and Florida Dept of Revenue. I will post back if I get an answer from either party.