Airbnb is charging my guests the incorrect amount of tax for the past year

[Kerri-Ann12]

My state enacted a short-term rental tax last year. My place is registered as a bed and breakfast/lodging establishment and my guests are exempt from this tax.

However, I reached out several times to Airbnb and they have not removed this extra tax from my listings. Any idea how to get beyond basic host support to elevate this issue?

[Kitty-and-Creek0]

@Kerri-Ann12 

This is interesting! All lodging establishments here collect and remit the same TOT - Transient Occupancy Tax. That includes hotels, motels, B&B, campgrounds, and STR. The only exemptions are for rentals over 30 days, here. Have you double checked with the local tax collection folks at your city/county? 

[Joan2709]

@Kerri-Ann12 

Are you sure your property is exempt? Your listing is showing (2) State of Vermont Taxes:

State of Vermont 9%

State of Vermont 3%

According to the State's website, only licensed hotels and other similar lodging establishments are exempt from the new 3% tax. Do you have a hotel license? Were you given a grandfathered exemption from the State of Vermont as a B&B and considered a "lodging establishment" and not a short term rental? 

State of Vermont

https://tax.vermont.gov/business/industry/short-term-rentals

Also, your listing states it was a B&B when you purchased it in 2021, but you don't serve meals now? 

The Space

"We purchased this historic home in October 2021 and are gradually making improvements. Furnishings may be different than as pictured when you arrive. Formerly a B&B, the current Guest House does not offer breakfast." 

If you don't serve meals, the state probably doesn't consider your listings exempt, unless they allowed you to be grandfathered in.

You would probably need to prove in writing that you are exempt from the Vermont Tax by providing a hotel license, or exemption statement from the State of Vermont to Airbnb in order to get the tax removed.

[Kerri-Ann12]

Yes, I’m absolutely positive that we are registered with both our city and the state as a lodging establishment. We have four guest rooms.

[Joan2709]

@Kerri-Ann12 

If you are classified as a "Hotel" or Bed and Breakfast (even though you don't serve meals - so it's really just "bed" 😊), are if you are then considered exempt, then I would provide those documents to Airbnb in order to have them stop charging the taxes.