Taxes

Pat29
Level 1
Page, AZ

Taxes

I am very confused about this tax thing. I pay my taxes monthly according to what Air B&B pays me. This says they want to send the taxes to the state. This worries me. How do I know they are calculating it correctly and sending it to the correct address? I have always included the tax in the room rate so i am not losing any money from this site over the other sites that allow me to list the taxes separately. I don't want them charging my guests even more. Is there anyone that knows what is going on?

 

18 Replies 18
Clare0
Level 10
Templeton, CA

@Pat29 did you receive some kind of notification that Airbnb will begin to collect Occupancy Taxes for you?  Right now, I am in the same boat as you:  I pay monthly and do not add it to my guest's bill.  Don't know what the requirement is for AZ, but I have to pay 10%, not on what Airbnb pays me, but on the gross amount excluding Airbnb service fees.  Interesting. 

If Airbnb begins collecting taxes for you, I don't see any reason to doubt they will do it correctly and in accordance with the procedures outlined by the state.  One nice thing is that you can lower your nightly rate!

Wish Airbnb would collect for me! 🙂

Yes, I received a notice that they would start collecting tax in Jan 2017. Just hope they get it right. Each city in AZ has a different tax amount. The state is the same, but the local isn't. My taxes total 14.163%. I have always just added this to the room rate so I receive the same amount as from other sites. I fill out a form each month with my income and figure the percentage of tax from the total income. Guess starting in Jan I will only report income from other sites? Then will AirB&B send me something at the end of the year? I get a lot of rentals from AirB&B, but is this really worth the worry that my taxes are being paid correctly and that I am calculating my income correctly by not reporting AirB&B because they are reporting it? This will be our second year as a B&B and I don't want to end up with tax problems. 

@Pat29 Since I do not have exposure to Airbnb's collecting taxes on my behalf, I think it would be wise of you to track what Airbnb pays in what ever means you use to track your payments on the non-Airbnb payments.  At the very least I would expect Airbnb to provide you with a year end Earnings Statement showing what they paid in taxes, but optimally also show the amounts in your transaction history.  

Let us know how you get on with this come January!

Hi there, for weeks I've been stressing about doing my excuse tax return after having quite a mess last year after WA State started collecting sales tax in Oct 2015.

I couldn't find my paper return from last year

And I finally called WA State DOR and the gal answeeed after 20 minutes in hold and told me to put my gross earnings from Airbnb statement into the retailing box then on the tax deductions page under other I put the gross earnings again and then 

This is also my first year as a host and I've been worried about handling my taxes correctly.  Airbnb charges my guest occupancy tax so I presume they are also paying the city of Kirkland those taxes on my behalf.  Is that also your understanding??

Yes! Airbnb pays all the taxes (sales and occupancy) so the DOR help person on the phone had me only fill in two boxes for B&O - both were the gross earnings amount number.
I cannot stress enough how simple it was to efile with her help over the phone. It really only took a minute because I already had a DOR account.
From here out I can easily do them myself. Good luck to you!
Pam

Sent from my iPhone

On Jan 21, 2017, at 11:48 AM, Airbnb Community Centre <community-support@airbnb.com> wrote:

Hi Pam,

Sarah (Level 1) posted a new reply in Community Help on 01-21-2017 11:48 AM :

Re: Taxes

This is also my first year as a host and I've been worried about handling my taxes correctly. Airbnb charges my guest occupancy tax so I presume they are also paying the city of Kirkland those taxes on my behalf. Is that also your understanding??


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I clicked check for errors and there were none 

then I put my name and contact info and Submitted and I was Done!

hurray! 

It took one minute with her help over the phone to e-file.

 

im 

CarlandDiane0
Level 10
San Marcos, TX

@Pat29  If Airbnb is collecting and paying taxes on your behalf, then you're ahead of the game. In our town, we're about to have occupancy tax payment imposed on short-term rentals, and the city's finance department has been trying to contact the various platforms, including Airbnb, to get them to collect and pay taxes. According to an update I heard last night, they're having "very little luck."

 

I think Airbnb responds only to threats from cities that they'll outlaw short-term rentals unless the booking platforms themselves handle tax collection and payment. That's really not how our city does things (they're not the best negotiators, from what I've seen), so I expect we'll be adding 9 percent to our rate, which sucks because Airbnb sees that as straight income and calculates its commission on that extra tax money as well.

 

I've asked several times that if Airbnb isn't going to collect and pay taxes on our behalf, the least it could do is simply add a line item to "Extra charges and currency" section of our pricing settings that allows hosts to cite a specific percentage for any occupancy taxes they are obliged to collect. (In my town it's 9 percent, or 15 if you throw in state of Texas occupancy tax.) That way, that amount could appear as a separate line item ("Local tax") in the Total Price guests see, and it would naturally separate the tax amount from the amount on which Airbnb charges a commission. I work with tech companies and this seems to me to be a fairly simple modification to make to the site, and it wouldn't even require a change to Airbnb's payout process.

The other sites I deal with have no problem putting an extra line in for the taxes and calculating them for the guest. I guess I will go in and change my prices to reflect the pretax prices. I have always included the tax in the room rate so not to lose the 14.163% that I have to pay in taxes on each room. 

Debra73
Level 2
Lansing, NC

I am a new host working my first rental inquiry.  We have messaged back and forth and our property is booked, but I have no idea if the taxes were included.  I live in NC and airbnb is supposed to collect that, but I am suspicious it will now come out of the base rental amount.  Was I supposed to calculate those state and local amounts and include it in the Special Offer?  Do we as hosts always send a Special Offer in order to list all of the costs for the renter?  So confused, and feeling like the airbnb "staff" are in some inaccessible, nebulous cloud that I can't reach.  Honestly, I don't have time to search through hundreds of comments to find just the right answer!  Anyone agree?  Some of you experienced airbnb'ers - please help!

 

@Debra73  I took a look at your listing and Airbnb is automatically collecting and remitting the following taxes:

 

General Sales and Use Tax (North Carolina)

General Sales and Use Tax (Ashe)

Accommodations Tax (Ashe)

 

They charge the guest directly for these at the time of reservation - you do not need to collect these separately.  Hope this helps!

That helps enormously.  Thank you so much for responding.  But, how do I find that information for myself?  I would like to see just what the person who is reserving sees.  

 

I pray that once I "get it down" this first time around, things will go much smoother!  Excited to get our first renter!

@Debra73  Just head over to your listing and pretend you are a guest reserving.  A direct link to your listing is here:  https://www.airbnb.com/rooms/17207712