Transient Occupancy Tax

Good-Reviews-Only0
Level 2
Sacramento, CA

Transient Occupancy Tax

Anyone that has a property listing in a county where Airbnb doesn't automatically collect taxes knows the playing field isn't exactly even. A quick search for the nearest 15 properties and not a single one is collecting the TOT. Has anyone addressed this?

3 Replies 3
Emily1785
Level 2
Sacramento, CA

We received a letter in December asking for 3 years back pay of TOT's plus penalties.  We never were aware we had to collect them and did not have the opportunity to collect what we now owe to they are also unaware of this. This is not what we do for full time work. We verified our properties existing use permit covered the Airbnb but was never told by the County about the TOT situation. Further Airbnb never disclosed to us that they were unable to contract with Sacramento County to pay it on behalf of hosts.  If I had known I would have collected this TOT this entire time. I am ready to approach the Board of Supervisors about this matter.  Looking for more that have dealt with this issue.  I know I am not alone.

Lorna170
Level 10
Swannanoa, NC

@Emily1785  I am sorry that the County is requesting back taxes.

 

Unfortunately, it is not the responsibility of AirBnB or any management company for that matter to inform you about the taxes that are charged for STRs.  It is the responsibility of the host to know this information, and most local tax departments will have someone who can explain the local tax situation.

 

@Good-Reviews-Only0  If AirBnB does not have an agreement to collect taxes, it is up to the individual host to set up the taxes for their listing.  You have noted that there are hosts who do not appear to be collecting TOT in your area.  Just because it is not listed as a tax on the booking page does not mean that the host is not collecting the required taxes.  It just means that they are not being transparent about it.  

Good-Reviews-Only0
Level 2
Sacramento, CA

This isn't what I'm asking if you read between the lines. 

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