How do I add a local occupancy sales tax? (Juneau AK)

[Beau4]

The city of Juneau will require me to pay them 12% sales tax for Air BNB. I'm supposed to "Collect that from the renters."

How do I set it up in the airbnb account to automatically charge them another 12%? Or, is that not a thing?

Somewhat shocked I'll be paying 40% taxes for airbnb. (local+fed)

[Clare0]

@Beau4 Holy Cow! 40%? Sounds like it wouldn't be worthwhile or is Alaska doing this to discourage short term rentals?

Sadly, if Airbnb is not collecting Occupancy taxes for you, you will only have two options: 

Describe in your listing that you have to collect x% for Occupancy taxes and collect when the guest checks in. 

Or, incorporate this into your nightly rate and pay out of your payouts.  That's what I do since I don't want to mess with asking for payment from the guest or doing Special Offers.  Less hassle for me and guests.  Here's Airbnb's official statement on this: 

https://www.airbnb.com/help/article/654/what-is-occupancy-tax--do-i-need-to-collect-or-pay-it

Hopefully Airbnb will figure out a way to do this automatically for hosts like you and me soon!

[Beau4]

Well I was counting IRS tax as well, which I am told is more like 32%, so 32+12 = SOCIALISM level taxes lol 😉

[Colleen258]

SMH --- you STILL haven't learned to not believe everything you read on the internet?  Especially when OP doesn't seem to have enough sense to come in out of the rain!  From ANOTHER post (by a different person, obviously!) "AirBnb does not collect the required city sales tax of 5% or the room occupancy tax of 7%. .... "    Out of that the braindead tells you tax rate of 40% and you believed 😞 😞   In another situation might be laughable.

[Cynthia-and-Chris1]

@Beau4  Unfortunately Airbnb doesnt have an itemized line to add various taxes and fees.

Read this handy dandy guide to see what to do:  https://community.airbnb.com/t5/Community-Help/How-to-Charge-Extra-Fees-for-Services-A-Community-Hel...

[Heather188]

Hello Beau, I have just spoken with Katherine at CBJ Finance and she has told me that local code prohibits innkeepers from absorbing the tax in the airbnb cost. So that means we can't just pay CBJ out of the listing amount. It is explicitly stated in the code that the guest must pay it, not the innkeeper. The only way I see to comply is to state something like I have in my listing:

"Please note, City and Borough of Juneau code requires the collection of 5% sales tax and 7% bed tax (total 12%) from guests. airbnb does not collect this tax and code also prohibits innkeepers from absorbing the cost for their guests and paying it out of the net receipts from airbnb. This tax will be collectable upon check in."

[Beau4]

Yeah well expecting us to ask for cash or check when airbnb is a cloud based payment system is silly, that will affect reviews and thus future listings.

[Heather188]

@Beau4 I quite agree! I did as they instructed but my guests have had trouble with the resolution center. When I contacted Airbnb about the problem they reversed their earlier direction and now are telling me we should not be using the resolution center for collecting taxes! I don't believe it is fair to expect me to have another payment method like square and pay fees to accept taxes because the airbnb platform is incomplete. I'm also not comfortable asking for cash. If I were asked to pay taxes with cash, it would feel to me like it is not a legitimate charge and may be an under-the-table scam!  I am a professional and I do things by the book. Airbnb's policies and platform are not helping to promote that image. And as you noted most people do not carry cash these days.

[Beau4]

And what if a guest refused to comply or didn't happen to have cash or check on their person?

[Wesley--伟思礼-0]

I am not a lawyer and I do not play one on TV.  However, I strongly suspect that if your listing clearly states that "Your payment includes a tax of $___ (__%) required by law" you would be compliant with "the guest must pay"

This is the way the civilized world does it, i.e., everyone but we Americans.

[Jamie113]

Did you ever find resolution to this Beau? And if so, how are you collecting these taxes? Did you get a business license? Is that how you knew about the additional tax?

[Beau4]

The city thinks I should ask people in person for cash for the sales tax, I explained that would be dumb and result in poor reviews since airbnb is a cloud based, no physical money needed on hand system.

So I just have to pay the taxes out of what I make. It's 32% to the IRS and 12% to CBJ. It's a lot of taxes. Yes you're supposed to have a business lisence...which is fun becuase you can chose the name...mine is like "AK loves taxes" or something.

I found out about the city taxes because they have a person or dept making sure people pay "bed and breakfast" taxes on their airbnb listings.

[Heather188]

Unfortunately City code expressly prohibits you from just taking it out of what you make. 😞  I had this conversation with them.  I have an LLC and a business license. I am filing my first quarterly sales and occupancy tax returns now.

[Beau4]

How do they enforce that?

[Stephanie-and-Gernot0]

I just see this! Could we please set up a meeting for January and we discuss this issue that we are all dealing with? I will send out invitations through the Juneau home sharing group in Facebook