Denton Texas

[Jose7725]

Im a new Airbnb host in Denton Texas and it’s time to pay occupancy tax to the city. How is this calculated? 

[Joan2709]

Hi @Jose7725 

Taxes should have been added when you setup your listing? Airbnb collects and remits taxes for some juristictions automatically, but not for others. Airbnb forwards tax collection in one lump sum to the juristictions involved; they don't separate it by each listing. For this reason, Hosts should keep records of every reservation and the taxes collected in case the governmental agency requests you provide proof it was paid. Some Hosts use spreadsheets for that, others either keep an electronic copy of each reservation, or print it out for each reservation. Hopefully, you have been keeping track?

Occupancy Tax Collection in Texas

https://www.airbnb.com/help/article/2331

For those locations that Airbnb does not collect and remit taxes, the Host is responsible for collecting it from guests for each reservation and then paying the taxes when due (there is a manual way to add a tax on the platform). Hopefully Airbnb has been collecting the taxes all along for you? If not, that might be an issue as you would still owe the tax even if you didn't collect it from guests. You can simply look at a reservation and see if "Occupancy Taxes" are listed under "Guest Paid."

You can also go to your Listing Page/Policies & Rules. Scroll to the bottom and you will see Taxes. Click edit. If Airbnb collects taxes, it will be listed there.

[Jose7725]

So I did notice that Airbnb does collect an occupancy tax, but is that for the state only and additional one needs to be added for the city?

[Joan2709 · Accepted solution]

Hi @Jose7725 

You should find out what taxes you owe as an Airbnb Host by contacting the appropriate jurisdiction(s) including the City (Denton) and State. Most juristictions require sales tax at the State level and Sales Tax & Occupancy Taxes at the local level. 

I would start by going to your Taxes section on your listing. It will tell you what taxes Airbnb is collecting (they don't mention the percentages, just who they are collecting and remitting for). 

Airbnb reservations (at least for me) lump everthing together under "Occupancy Taxes"...they don't have a separate line item for Sales Tax and a separate line item for Occupancy Taxes on the reservation. Some Hosts use a spreadsheet to breakdown all the taxes by percentages for easy reference come tax time. For example:

10.6% "Occupancy Taxes" shown on the reservation equals:

6.5% State Sales Tax

2.1% County Sales Tax

2% County Occupancy Tax

[Paula]

Thanks so much, @Joan2709, for all your help and support regarding @Jose7725's question. 🙏