Airbnb Response on El Dorado Occupancy Tax Rate Mistake

[Samantha1099]

After contacting Airbnb back in late November regarding the tax increase from 10% to 14% and being told not to worry, they were working on it and would be responsible for the difference, my tax rate still remains 10% and 1Q taxes are due and I am short.  I opened the ticket again with Airbnb and after much back and forth wIas given 48 hours to give them the longitude/latitude of my address, the complete address, and proof of my permit- all items they either have or could have gotten themselves.  I also sent them again the information they asked for back in December- anj email from El Dorado County stating that the corect tax rate is 14%.

Yesterday I received an email stating they are correcting my tax rate to 14% and it should show within 24 hours.  I responded stating that doesn't fix reservations already booked and asked how it would apply retroactively back to 1/1/23.  

Today, I received an email stating that Airbnb is not responsible and it is my responsibility.  Apparently, Airbnb making the mistake, not allowing me to adjust taxes since the cabin is in an area that requires Airbnb to remit, my contacting them proactively in November, and my paying host fees for every reservation means I should also be responsible for the additional uncollected 4% taxes on all my reservations for 1Q and those already booked for 2Q?

Can't believe this response!  I have asked for management to contact me.  If this is not resolved, I will be leaving Airbnb and using VRBO.  In addition, I am contacting the El Dorado County Tax Collector who also received an email from Airbnb stating they would be responsible to let them know Airbnb's latest response.

Collectively, all El Dorado County hosts should join forces here and make a stand!

[Jenny]

Hi @Samantha1099 

I just thought I'd check in and see if you managed to get this resolved with Airbnb?

Let us know, if you can.

Jenny

[Samantha1099]

Unfortunately, no.  Airbnb finally corrected the tax rate but is now refusing to make good on the previous email I received and holding me responsible for paying the uncollected 4% tax to El Dorado County.  After going through all of this back in November and alerting Airbnb and being re-assured it would be corrected and they would be responsible, I am very disappointed in this response now.  I have repeatedly asked for contact from management and Patrick has now sent me three emails saying I need to read Airbnb's policy on tax collection and that I am responsible.

I responded again this morning asking again for management contact and unless I receive that within 48 hours, I will be forced to seek legal action and coordinate with El Dorado County Tax Collector who also received email from Airbnb stating Airbnb would be responsible for the uncollected tax for hosts.

I would appreciate any advice you may provide as well.

[Kia272]

@Samantha1099  I understand your frustration. The responses you've received are typical of AirBnB, an organization that specializes in frustrating customer service experiences, and lack  of accountability. 

However, what I don't understand is your expectation that AirBnB can do something about this retroactively. If they didn't collect enough taxes, how can they pay what is owed? It's YOU that owe the taxes, their mistake aside. You need to make up the difference and pay El Dorado County.

Money that is now in your pocket is a result of them not collecting at the correct rate. 

So the thing for you do do is to pay what is owed, and then come to a separate decision as to whether you choose to keep doing business with AirBnB. I'm confused as to what you want them to do? An apology is one thing (and not likely to happen), but they're not going to pay taxes that you owe out of their pocket. It seems like that's what you're asking for? 

Kia

[Samantha1099]

Hi Kia

I think I must not have been clear in my posting.  I contacted Airbnb proactively when I noticed that upcoming reservations for 2023 were not being charged the new tax rate (November 2022).  

I spent 3 days on the phone and by email going back and forth and was told in writing by Airbnb that they would be correcting the tax rate as I cannot adjust the tax rate for my posting (it is controlled by Airbnb and the taxes are remitted directly from Airbnb to El Dorado County).  Airbnb said they would be responsible (again in writing) for any uncollected tax.  Airbnb also sent the same email to the El Dorado County Tax collector who sent me the email they received saying the same thing. 

In short, Airbnb had the opportunity to correct the reservations back in November as they had not yet occurred.  They did not.  I now went back through the process again with Airbnb who requested the same info as they did before.  They have now corrected the tax rate, but only for new reservations (not even for reservations already booked but not yet completed) and are refusing to do so or to do what they said they would do back in November in writing both to me and to the El Dorado Tax Collector.

I do not have the money in my pocket.  I have to take the additional 4% uncollected tax out of my rental income thus decreasing my income.  At a minimum, Airbnb should refund my host fees for these reservations!

Hope that explains my post.

[Kia272]

@Samantha1099  I understand exactly what happened without the additional explanation, however you DO have the funds in your pocket. When AirBnB didn't deduct the additional taxes, they went to you in the form of rental income. So, you DO have to "take the additional 4% uncollected tax out of my rental income thus decreasing my income." 

Yes, AirBnB messed up, but you still owe the taxes. Two separate issues.