Airbnb Connecticut Tax Overcharge

Qiaodong0
Level 1
Santa Barbara, CA

Airbnb Connecticut Tax Overcharge

Airbnb is probably overcharging occupancy taxes in Connecticut. The occupancy taxes law in Connecticut says the tax should be charged 15% of the first 30 days, as shown in CT tax This is the same as what Airbnb claims about the occupancy tax in Connecticut.

Now if you go to the Airbnb website, click on any places and choose any duration over 1 month, you will notice the amount of tax collected as shown in the price breakdown is 15% of the total accommodation, rather than the first 30 days. Here are a few examples that I randomly collected in Connecticut, I choose the duration to be two months(62 days).

$1,900/ month CHECK-IN12/2/2020 CHECKOUT 2/2/2021 GUESTS1

  • Accommodation: $3,800

  • Cleaning fee: $100

  • Service fee: $414

  • Occupancy taxes and fees: $585

  • Total$4,899

In this example, the tax collected is (3800.0 + 100.0)*0.15 = 585. Therefore the tax is also collected for days beyond 30 days period. This violates their claimed tax code. The correct amount of tax should be: (3800/62.0*30.0 + 100.0)*0.15 = 290.8, that's 15% of the first 30 days including the cleaning fee, which is consistent with the tax code.

2)

$3,588 $3,229/ month CHECK-IN12/2/2020 CHECKOUT2/2/2021 GUESTS1

  • Accommodation: $7,175

  • 10% monthly price discount: -$718

  • Cleaning fee: $50

  • Service fee: $691

  • Occupancy taxes and fees: $976

  • Total$8,174

In this example, the tax is collected as: (7175 - 718 + 50)*0.15 = 976.0. Again, the tax is collected for the entire 62 days of stay. Rather than the first 30 days. The correct tax should be: ((7175 - 718)/62.0*30.0 + 50)*0.15 = 476.15.

3)

$1,178 $1,060/ month CHECK-IN12/2/2020 CHECKOUT2/2/2021GUESTS1

  • Accommodation: $2,356

  • 10% monthly price discount: -$236

  • Cleaning fee: $10

  • Service fee: $226

  • Occupancy taxes and fees: $320

  • Total$2,676

Again, the tax is collected for the entire 62 days: (2356 - 236 + 10)*0.15 = 320.0. The correct tax should be: ((2356 - 236)/62.0*30.0 + 10)*0.15 = 155.37

Feel free to go to the Airbnb website and verify yourself. Click any places in Connecticut, choose a duration over 30 days, and you'll find the tax collected will be 15% of the total accommodation plus cleaning fee. Rather than the first 30 days. I found this a few days ago, and the problem is still there as of today (11/30/2020).

The reason I found this is that previously I reserved a place for three months from Airbnb in Connecticut almost half a year ago. And six weeks ago I reserved the same places for another three months. I noticed the prices were increased but wasn't paying attention at that time. Then I chatted with the host and found out he actually didn't increase the accommodation. Then I compared two recipients and found out about this problem, where the tax of the new reservation is charged for the entire stay.

I tried to dispute the charge, but no concrete answer has come from their customer service.

2 Replies 2
Liv
Former Community Manager
Former Community Manager
London, United Kingdom

Hi @Qiaodong0,

 

Thanks for bringing the issue to our attention and I'm sorry to hear about that.

 

I have checked on your case internally and it seems that you have just been sent a reply about your case. Would you be able to check your email inbox at your earliest convenience?

 

I do hope it is resolved, but feel free to let me know if you have any other concerns.

 

Thanks,

Liv

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Qiaodong0
Level 1
Santa Barbara, CA

Yes, I received a reply this morning and they told me it's rectified.