Breckenridge Colorado sales tax collection problems

Wes12
Level 2
Denver, CO

Breckenridge Colorado sales tax collection problems

According to Summit County laws the following should be collected:

 

http://www.co.summit.co.us/ArchiveCenter/ViewFile/Item/163

 

However, Airbnb is only collecting the following taxes:

 

Coloardo State Tax 2.90%

Summit county tax 2.75%

Summit Housing tax .72%

 

Total: 6.38%

 

To further complicate things, they do not collect anything on resolution requests (like pet fees).  

 

So questions for the group:

1.  Who is filing the Airbnb portion of taxes and I am required to submit that report to the state

2.  How do we properly account for and pay for the difference to Breckenridge...do we file a separate return or back out the amount already paid by Airbnb.

3.  How do we account for the resolutions payments since no one is getting paid.

4.  How do we make sure the guests know that they aren't paying the proper tax amount and how do we easily collect it without reducing our margins?

 

There are probably others but this is a good start for the conversation. I personally would rather than Airbnb let us opt out if they aren't going to handle this fully.

 

Wes

 

11 Replies 11
David126
Level 10
Como, CO

This has been discussed before, as I understand the situation they have an agreement with the State that includes County and most Town taxes however for whatever reason Breck has taxes it collects direct and not through the State, Breck has no agreement with ABB so you need to collect and remit those taxes direct to Breck.

David

Thanks David and I've seen the previous comments.  It still doesn't address most of the questions that I asked below in the original note.  

Kirsten79
Level 1
Denver, CO

Wes I am with you.  I can not figure out what AirBNB has and has not paid and to what entiity.  And I get nothing but the run around from them. 

Kristen, Di dyou ever figure this out? I am struggling with the same thing.

 

Kate512
Level 2
Denver, CO

Hello All, Did any of you have luck sorting this out? I have the same confusion. We were paying the taxes and then according to Airbnb they are now collecting the state portion. Any info on the resolution would be greatly appreciated. I am still unsure how to submit payment to Summit County only. Kate

Hi. Airbnb is only paying the state and county. You are still responsible to collect and pay the Town of Breckenridge. I wish it was all or nothing but that is not the case. 

Thanks Wes, What tax form is allowing you to just pay the town of Breck and any idea if it has to be paid if you are outside the town limits? Thanks for any help, Kate

The Town of Breckenridge has an online tax payment system and reporting. If you have your lodging license you have to pay the tax. I suggest you call the Town for assistance they are very nice and understand the Airbnb issue.  As long as your unit is in Breckenridge town limits you must pay the tax but again I would inquire.

Lindsay15
Level 1
New York, NY

There is no way for us to collect this tax from guests beside increasing the price is that correct? 

Kathy643
Level 1
Castle Rock, CO

Hey Guys I am late in this game but our listing in Breck does not even give us the option to add the tax on the listing, can i ask how you added it to yours??  and Airbnb is not the easiest company to actually contact someone to get an answer

Wes12
Level 2
Denver, CO

You will just need to increase your nightly price to cover it.