Santa Fe, New Mexico CRS taxes

Gemtria0
Level 2
Santa Fe, NM

Santa Fe, New Mexico CRS taxes

I live in Santa Fe where we are required to pay CRS or gross receipts taxes on income from airbnb, similar to a sales tax. Is there a way to collect these taxes from the renter at the time of booking? Otherwise, I need to pay it myself out of the rental income. 

4 Replies 4
Elizabeth429
Level 10
Madrid, Spain

@Gemtria0,

 

Since the tax isnt related to tourism as such but to the business you are running by renting your place on Airbnb, the taxes are on you. You could make numbers and add the procentage to your night rate.

 

Donald-and-Frank0
Level 2
New Mexico, United States

You should know, by now, that both the major vacation rental platforms started collecting GRT (sales tax) to pay to New Mexico commencing July 1, 2019. Problem is, they are probably collecting the wrong amount. I know they are overcharging my guests. I am in an unincorporated part of Edgewood, Santa Fe County, and the rate IS 7.125%. They are refusing to accept that rate for my locale.

 

Once they started, there is no longer any place to add a percentage for additional taxes, of which there are many and varied in New Mexico. Santa Fe County charges a 4% Lodging/Occupancy Tax. I either have to eat the tax, add it to the base rent or, notify an initial booking that there will be an additional 4% tax that I will have to collect at check-in.

 

I cannot understand why more New Mexico hosts aren't up in arms about this. If it does not get resolved I will be going to the local press to see if they're interested in the incompetency of both Airbnb and VRBO!

Gemtria0
Level 2
Santa Fe, NM

my understanding is that they have been collecting and paying the hotel tax all along, but are you saying that they are now collecting and paying the gross receipts taxes as well?