Taxes

Sean30
Level 3
Glen Ellen, CA

Taxes

Airbnb is not being transparent and on top of that they are taking a cut of the taxes we need to pay.

 

 This seems illegal to me - be deceptive on pricing (don't show the taxes then ask for it later from the guest) or show higher prices and pay Airbnb a fee inclusive of the taxes and then you as the host are screwed each time you rent.

 

Why can't they add a separate line item for taxes and we input the rate just like VRBO -and take no fee from that amount-  this may be the thing that kicks me off this site - this feels slimy and makes me think airbnb has deceptive business practices.  

120 Replies 120

That was my question but not getting to the bottom of it. Prospective guests are saying it is not a line item (I'm in an area required by the state for Air to collect taxes) and asking me the prices (?) when I thought it was all laid out, but someone at Air showed me a made up example ss of where it is a line item. Is it or not and can the host see this- can guests? I need also to make sure that Air paid the taxes I am responsible for. I'm in FL

I am new to the site and thought I was going to book my first guest.  Then the guest wrote me about the add on taxes and fees.

When I tried to see what the total, including fees were, I could not find it.  I've been all over this site and getting frustrated.

If the taxes and fees are not transparent, it may not be worth it to use this site.  I have no idea what the total will be for my guests, which would effect my pricing on the unit.  Any help or information on this is appreciated.

@Teri2 You can see exactly what guests are being charged by going to your listing a do a "pretend" request to book.  You will see your price, cleaning fee (if any), Airbnb's Service Charge and taxes where applicable.  Just don't press the Request to Book button!

 

 

 

 

 

 

 

 

No you can't - they only allow taxes where they say it's applicable - aka they got sued or have an agreement with that local government.  They don't care if I'm still leagally obligated to pay taxes their answer is add it to your rate and then we'll take a cut of it.

Andrea9
Level 10
Amsterdam, Netherlands

@Sean30

If you go to your payout section you can choose to see the detailed payment history and that is where Airbnb lists their transactions to you as well as  taxes they charged (which they in turn pay to your city). For example Airbnb collects hotel/tourist taxes all of us hosts in Amsterdam. We then submit this payment data to our municipality as proof of payment.

Andrea - again only because they have an agreement with your city.  
 
There is no agreement with my county and so their approach is your on your own.
 
Go ahead look at a home for rent in Northern California there are no taxes charged separately.  
 
I find it so ironic that a company based near where I live seems to care more about doing the right thing and processes taxes for people in foreign countries but not everywhere in its own country.

In order to get the right to do business in reluctant cities or states, which are worried about their share of our businesses, Airbnb has offered to collect taxes for them.  That gets Airbnb approval to operate there.  I live in Vermont and have been collecting and paying its 9% Rooms and Meals Tax for years; we just included it in our rental rates and said so in all our descriptions.  But a month or so ago, Airbnb and Vermont signed and agreement in which Airbnb -- not the owner -- collects the taxes.  But rather than disclose the amount of tax for each transaction as a line item, as Homeaway and VRBO do, they seem to be doing it behind the scenes in information shared between them and the potential guest.  We have no proof that they are, indeed, collecting taxes.  Further, this secrecy makes it impossible to answer questions posed to us by our potential guests.

My question is that in Vermont (where they take taxes out automatically), if the rental is for more than 30 days, there is no tax required.  I have a potential guest for 3 months, how is that going to work for her, certainly she should not pay another 9% that is not required.  I am asking here because I have no idea how to contact AirBnB about it.  Any suggestions?   I am totally new to this and it sure looks complicated!

Hi Merry Lee, 

 

I am a host in Burlington VT.

I called airbnb recently and asked the same question.   The kindly rep who answered walked me through the web site to "transaction history"   and to the tab "gross earnings"    In that column you can see the record of each guest, how much they paid you and also how much airbnb collected and paid the State of VT.   He also said that when they email you that the transaction is completed, that the taxes show up as a line item.    I think I have that right.  I have not had a recent booking so I can't confirm. 

 

Kathleen 

Hi Kathleen,

 

I have looked all over the site for a phone # to call.  Would you mind forwarding it to me?  I am new to this and have a couple of questions...  Like, can I advertise more than one bedroom to rent in the sam listing or does it have to be separate listings?  And, who is responsible for sending in the use (?) tax to the state board of equalization.

 

Thanks!

Andrea

Clair,

 

I notice you are in Templeton CA as I am too.  I am just starting out.  Do you need a  business license?  I notice our county is not listed, therefore we do not need to collect?  Sorry novice but appreciate any assistance.

 

Thanks

suzy

@Suzy-And-Cameron0 Hi guys! Small world, isn't it?  Yes, you need a business license and will have to pay 10% of your gross earnings (before Airbnb takes their 3% cut) to the SLO County Tax Collector..same place where property taxes are paid. You will be mailed a form each month to calculate / pay your TOT taxes.  

The phone number to call about a business license is 805.781.5832.  Also, the Planning Department will need to approve your having a short term vacation rental.  I'm out in the countryside so it was a non-issue for me. 

Since you are just starting out and are neighbors, feel free to click on my profile picture where you can send me a private message if you need help with anything.  I'm normally glued to my laptop working on other projects so I will see any emails you send to me. 

Happy to help you out!

Clare

Hi Kathleen,

Can you please tell me how you managed to find a number to call Airbnb, or actually send me that number?  So far, the only way I've been able to reach them is through twitter or facebook.

Thanks,

Dave