taxes

[Judith26]

How do you handle taxes?

[David126]

Include them in your price.

[Amy38]

The taxes in Nashville add up to about 17%. There is no way I can add them to my listing and be competitive.  I state twice in my listing the exact taxes ...the exact  % the state and city charge and say I will collect them on arrival. I will take a check and I have a Square so I can take a card. A Square acct will cost you 3.7%  and the little gizmo is free. So I eat a  couple of percents of the tax.

No one has had any objections so far.

[Amy38]

The taxes in Nashville add up to about 17%. There is no way I can add them to my listing and be competitive.  I state twice in my listing the exact taxes ...the exact  % the state and city charge and say I will collect them on arrival. I will take a check and I have a Square so I can take a card. A Square acct will cost you 3.7%  and the little gizmo is free. So I eat a  couple of percents of the tax.

No one has had any objections so far.

[David126]

Raises an interesting question, you advertise one price on AirBnB which is only part of the price and obviously AirBnB do not get their cut on the bit they do not process.

On the other hand from a Guest point of view of the cancel they are only at risk for part of the room cost.

I would have thought AirBnB would not be happy missing out on part of the transaction.

One of the advantages to me is that I do not have to collect anything, all done automatiically. I did get a Square but have had no call to use it.

[Gloria87]

Send a "Special Offer"

[Leone-and-Mark0]

Is there an easy way to work out how many guests you have booked over the year ? ( at present it counts each booking as 1 guest, which isnt accurate 

[Ed-and-Hugh0]

@Judith26 Airbnb collects the state sales tax, plus the Miami-Dade sales tax. The Stadium and occupancy taxes, you'll have to pay yourself. We use Avalara, and they handle all that for us, including licensing, etc.

[Ali19]

I don't see in the quotes I receive that the guests are charged tax? Do they take it from my total as a host? I haven't booked anything yet, am in FL and so don't know.  Shouldn't be a line item or does just the guest see it and pay it? Also use Avalara. Thanks!

[Cindy36]

I'm in a state that AirBnB does not collect taxes for, so I include it in my price, but it does feel unfair as it makes my price appear higher and i know others in town collect it when the guests arrive, so they have a falsely lower price. 

The odd thing is that AirBnB says BOTH:
"If you determine that you need to collect tax, you can usually either incorporate it into your nightly price, add it within a Special Offer, or ask your guests to pay it in person."  https://www.airbnb.com/help/article/481/how-do-taxes-work-for-hosts

AND 

"Security deposits can't be handled off-site in cash, as off-site payments are a violation of our terms." https://www.airbnb.com/help/article/140/how-does-airbnb-handle-security-deposits

So, which is it?  Can I collect money outside of AirBnB or can't I?  Why is the rule different?   Either way, I do NOT feel comfortable asking for it when the guest arrives.  I enjoy just being able to welcome them and show them around and it's a happy thing, not give me $20, $40, $60, whatever dollars in addition to the hundreds you already paid. 

My VRBO account includes Tax as a line item on TOP of my nightly fee and it works perfectly! 

I'm currently trying to decide whether to open a second property, but this is definately one of my hanging points because the other property is much smaller and so the tax overhead will make it appear way too much more than others in town. 😞

PLEASE, PLEASE, AirBnB, in every other way, you are superior.  Why can't you also include a line that I could put in 11% as my total tax and you add it to the total of the guest?  Then I could lower my nightly fee, be honest, transparent and all flows well!

Please?  Thank you!

Cindy Fox

[David126]

The issue is more one of a level playing field.

Perhaps part of the issue is that most places outside the US show prices inclusive, allowing some fees to be charged seperately is the problem, just stopping that would solve the issue.

If I was looking to book, paying part on line and part whn you arrive would be a major negative.

[Cindy36]

I agree and that's why I don't do that, but the fact remains that others do and so my price "looks" higher because I've included the taxes while others may collect it when you arrive.  My point is that it's unclear at this point and if AirBnB would just allow extra lines, like for tax amounts, I could lower my per night price, add back in the 11% tax I'm required to charge and people would see the entire amount so they could compare apples to apples.  No reason for AirBnB to not offer this.

[Ralph-and-Elizabeth0]

AMEN!!! Quite ridiculous that they don't offer a way to account for the taxes.  VRBO/Homeaway is a superior site in terms of Host services.

[Michelle333]

I completely agree. I have to also include the taxes in the rate, making it seem higher. I have even had people comment that they found the same house on VRBO or Flipkey and the nightly rate was cheaper. They think I'm trying to rip them off on Airbnb. I should not have to explain to people why I have to do this. It is just a simple line item they could add in. They are obviously doing it in some areas, so we know it is possible. In fact, a couple extra lines for other things would be great, such as pet fees, late check-out fees, whatever. It works great on VRBO.

[Murat1]

I am a new host and suprised when I saw I have to pay income tax about 15% plus Selfemployment tax around 25% (because is less than 7 days rental-a business under different IRS code). So host has to pay around 40% in taxes (in California). Is that correct?