Post by High Priestess on May 17, 2016 3:44:40 GMT
Amy shared on New HOsts Forum May 16 2016
www.airbnb.com/groups/content/content-221615
Occupancy taxes
I'm fairly new at hosting and would like to know how often AirBnB pays occupancy taxes to my local township. I see they collect them from each guest but I cannot find anything showing how often they are paid. I just received a notice from my township reminding all residents who collect rental income that occupancy taxes are due monthly. Can anyone help me with this? Thanks.
12 comments
Following
Like
Delete
Hide
Linda
Linda 3 hours ago
Amy, AIRBNB does not collect any taxes from guests. All they collect is their service charge. It is your responsibility to collect the occupancy tax from your guests and pay it monthly. You need to begin collecting it when your guests arrive and pay it when it is due. BTW: Your place is absolutely stunning!!
Reply Like Delete
Amy
Amy2 hours ago
Thank you, Linda! I am really confused now because I have had two guests complain about the taxes and fees AIRBNB collects and one specifically mentioned occupancy taxes. She showed me her receipt but it was a while back and I don't remember exactly what it said but I thought it was occupancy taxes. I know I only see a couple of dollars on my end coming out but the charge my guests say they pay is about $18 more than what I list my room for. One man accused me of a bait and switch till he actually read the breakdown. I guess I better look into this a little deeper.
Reply Like Delete
Linda
Linda 2 hours ago
Yes, you should. The room I rent, for example, is $65./night. Of that, I get $63.00, AIRBNB charges the guest (phone number hidden) for the rent and $8.00 for the service fee.) They DO NOT collect any taxes. So, on my listing I clearly state that state and local occupancy tax will be due when they arrive. Fortunately, here in Montana that is 7% state and 1.00.night county tourism tax. What I do is leave an envelope on the desk in the room with the amount they owe and thanking them. It take away the awkwardness of asking them. I have yet to not have it paid except a time I forgot to leave the envelope but it´s only $5.55/night so I ¨ate it¨. We have to file a report online monthly and send a check. I would guess a lot of AIRBNB hosts don´t do this and they fly under the radar but it´s dishonest and someday it will catch up to them. If you make it clear on your listing they should expect it, there should be no argument. I´d bet the same guy who accused you of a ¨bait and switch¨ wouldn´t accuse a motel or hotel of doing that when they unapologetically add on the taxes.
Reply Like Delete
Amy
Amy2 hours ago
Thank you sooo much for your help and advice. I just looked up my local laws and its 5% due on the 20th of the following month so I'm not too far back as I've only been doing this for a little over two months. Really appreciate your help! Next question, you viewed my home, how did you do that? I don't see any way to look at other homes on this forum. I used to be able to but with the latest update I can't find a way to do it.
Reply Like 1 reply Delete
Amy
Amy2 hours ago
I was asking because I wanted to look at yours and see your wording.
Bridget and Mark
Bridget and Markan hour ago
Actually, Airbnb DOES collect and remit some taxes, depending on region. Where I live there is a 10% nightly fee that goes to the state. It is a large amount and has changed my pricing structure. To check, use an anonymous browser window to search for your own listing for some specific days, as if you were a guest. They will show you a breakdown which is how your guests probably learned of it. I think my guests pay about 23% more than my listed price, all told!
Reply Like 1 reply Delete
Linda
Linda an hour ago
Well, there you have it! I was wrong....again! Why do they do that some places and not others?
Bridget and Mark
Bridget and Markan hour ago
Ours is also called "occupancy tax"
Reply Like Delete
Linda
Linda an hour ago
Just click on my photo. My profile will come up. Then scroll down until on the left you will see my two listings. I just added a second room. Click on those. BTW: It´s a good idea when communicating when they book to give them a ¨courtesy reminder¨ to remember there will be tax due when they arrive. So often they don´t even read the booking. I will say, ¨As per the information on the listing, this is a reminder .......¨ so they can´t say ¨bait and switch¨. If you are a couple months behind and they require you to give a month by month breakdown, just report it all in the current month or just start with the current month or something. I wouldn´t report it in such a way that you were telling them you were two months behind. Here in Montana it´s a $50.00 fine to be late on one´s report. Play dumb and start now. I´d say.
Reply Like Delete
Linda
Linda an hour ago
So Amy, they MAY be collecting it for you. A call to customer service would solve that mystery.
Reply Like 1 reply Delete
Amy
Amy3 minutes ago
Thanks for all your help, Linda. I had a guest email me her receipt and it clearly states "occupancy tax." Now I just have to follow up to confirm I'm good to go.
Bridget and Mark
Bridget and Mark4 minutes ago
Airbnb has had to reach different legal agreements in different places around the world. In one city they restrict it to room rentals, not entire houses. In another, they may restrict it to one listing location per person. In some areas they collect taxes, in others not. They have to deal with governments large and small around the entire globe, there can't be a one size fits all policy but I agree they could do a much better job communicating!
Reply Like Delete
Amy
Amy2 minutes ago
Thank you for your response. It looks like they're collecting it so I assume (??) they are submitting it. I will follow up with the township to make sure. Thank you again.
Reply Like 2 replies Delete
Deborah
Deborahin a few seconds
Yes, if AIrbnb is collecting it, they are submitting it -- but a city may not necessarily believe that. In San Francisco, there was a huge kerfluffle because Airbnb was collecting taxes for the city, but the city refused to believe that it was getting the right amount for each host. So it was demanding information from Airbnb to "prove" that it was getting the correct amount. In the end I think the city won that right. But clearly Airbnb doesn't want that sort of fight and doesn't want to have to send data proving the that the tax amounts correspond to what each host owed, in every city across the USA.
Deborah
Deborahin a few seconds
In fact I think Airbnb's experience of the kerfluffle with San Francisco regarding the data the city wanted to "prove" that the tax amounts were correct, is perhaps one of the major reasons Airbnb is now interested in signing up cities with "secret agreements' to collect taxes. They want the cities to agree to NOT demand all this data, in exchange for the ease of simply having huge piles of money delivered to their doorstep, with no effort on the city's part.
Deborah
Deborahin a few seconds
As Bridget says, Airbnb does collect some TOT /occupancy taxes in some places. They can only do this if they get city/state permission to do it. So they have to proceed one by one thru all cities/states. Also, Airbnb is now working to get cities on board with Airbnb hosting, by offering "secret agreements" to collect taxes. I am not sure how this works -- whether if the city doesn't agree to the secret agreement -- Airbnb would still collect taxes for them. Read more on the issue here:
globalhosting.freeforums.net/thread/2170/collector-refuses-sign-agreement-airbnb
Reply Like 1 reply Delete
Deborah
Deborahin a few seconds
globalhosting.freeforums.net/thread/2170/collector-refuses-sign-agreement-airbnb
Deborah
Deborahin a few seconds
As I understand it, if a host has a listing in a city or state where Airbnb collects TOT /occupancy taxes for that city or state, the host will get a one time message from Airbnb to this effect.
Reply Like Delete
www.airbnb.com/groups/content/content-221615
Occupancy taxes
I'm fairly new at hosting and would like to know how often AirBnB pays occupancy taxes to my local township. I see they collect them from each guest but I cannot find anything showing how often they are paid. I just received a notice from my township reminding all residents who collect rental income that occupancy taxes are due monthly. Can anyone help me with this? Thanks.
12 comments
Following
Like
Delete
Hide
Linda
Linda 3 hours ago
Amy, AIRBNB does not collect any taxes from guests. All they collect is their service charge. It is your responsibility to collect the occupancy tax from your guests and pay it monthly. You need to begin collecting it when your guests arrive and pay it when it is due. BTW: Your place is absolutely stunning!!
Reply Like Delete
Amy
Amy2 hours ago
Thank you, Linda! I am really confused now because I have had two guests complain about the taxes and fees AIRBNB collects and one specifically mentioned occupancy taxes. She showed me her receipt but it was a while back and I don't remember exactly what it said but I thought it was occupancy taxes. I know I only see a couple of dollars on my end coming out but the charge my guests say they pay is about $18 more than what I list my room for. One man accused me of a bait and switch till he actually read the breakdown. I guess I better look into this a little deeper.
Reply Like Delete
Linda
Linda 2 hours ago
Yes, you should. The room I rent, for example, is $65./night. Of that, I get $63.00, AIRBNB charges the guest (phone number hidden) for the rent and $8.00 for the service fee.) They DO NOT collect any taxes. So, on my listing I clearly state that state and local occupancy tax will be due when they arrive. Fortunately, here in Montana that is 7% state and 1.00.night county tourism tax. What I do is leave an envelope on the desk in the room with the amount they owe and thanking them. It take away the awkwardness of asking them. I have yet to not have it paid except a time I forgot to leave the envelope but it´s only $5.55/night so I ¨ate it¨. We have to file a report online monthly and send a check. I would guess a lot of AIRBNB hosts don´t do this and they fly under the radar but it´s dishonest and someday it will catch up to them. If you make it clear on your listing they should expect it, there should be no argument. I´d bet the same guy who accused you of a ¨bait and switch¨ wouldn´t accuse a motel or hotel of doing that when they unapologetically add on the taxes.
Reply Like Delete
Amy
Amy2 hours ago
Thank you sooo much for your help and advice. I just looked up my local laws and its 5% due on the 20th of the following month so I'm not too far back as I've only been doing this for a little over two months. Really appreciate your help! Next question, you viewed my home, how did you do that? I don't see any way to look at other homes on this forum. I used to be able to but with the latest update I can't find a way to do it.
Reply Like 1 reply Delete
Amy
Amy2 hours ago
I was asking because I wanted to look at yours and see your wording.
Bridget and Mark
Bridget and Markan hour ago
Actually, Airbnb DOES collect and remit some taxes, depending on region. Where I live there is a 10% nightly fee that goes to the state. It is a large amount and has changed my pricing structure. To check, use an anonymous browser window to search for your own listing for some specific days, as if you were a guest. They will show you a breakdown which is how your guests probably learned of it. I think my guests pay about 23% more than my listed price, all told!
Reply Like 1 reply Delete
Linda
Linda an hour ago
Well, there you have it! I was wrong....again! Why do they do that some places and not others?
Bridget and Mark
Bridget and Markan hour ago
Ours is also called "occupancy tax"
Reply Like Delete
Linda
Linda an hour ago
Just click on my photo. My profile will come up. Then scroll down until on the left you will see my two listings. I just added a second room. Click on those. BTW: It´s a good idea when communicating when they book to give them a ¨courtesy reminder¨ to remember there will be tax due when they arrive. So often they don´t even read the booking. I will say, ¨As per the information on the listing, this is a reminder .......¨ so they can´t say ¨bait and switch¨. If you are a couple months behind and they require you to give a month by month breakdown, just report it all in the current month or just start with the current month or something. I wouldn´t report it in such a way that you were telling them you were two months behind. Here in Montana it´s a $50.00 fine to be late on one´s report. Play dumb and start now. I´d say.
Reply Like Delete
Linda
Linda an hour ago
So Amy, they MAY be collecting it for you. A call to customer service would solve that mystery.
Reply Like 1 reply Delete
Amy
Amy3 minutes ago
Thanks for all your help, Linda. I had a guest email me her receipt and it clearly states "occupancy tax." Now I just have to follow up to confirm I'm good to go.
Bridget and Mark
Bridget and Mark4 minutes ago
Airbnb has had to reach different legal agreements in different places around the world. In one city they restrict it to room rentals, not entire houses. In another, they may restrict it to one listing location per person. In some areas they collect taxes, in others not. They have to deal with governments large and small around the entire globe, there can't be a one size fits all policy but I agree they could do a much better job communicating!
Reply Like Delete
Amy
Amy2 minutes ago
Thank you for your response. It looks like they're collecting it so I assume (??) they are submitting it. I will follow up with the township to make sure. Thank you again.
Reply Like 2 replies Delete
Deborah
Deborahin a few seconds
Yes, if AIrbnb is collecting it, they are submitting it -- but a city may not necessarily believe that. In San Francisco, there was a huge kerfluffle because Airbnb was collecting taxes for the city, but the city refused to believe that it was getting the right amount for each host. So it was demanding information from Airbnb to "prove" that it was getting the correct amount. In the end I think the city won that right. But clearly Airbnb doesn't want that sort of fight and doesn't want to have to send data proving the that the tax amounts correspond to what each host owed, in every city across the USA.
Deborah
Deborahin a few seconds
In fact I think Airbnb's experience of the kerfluffle with San Francisco regarding the data the city wanted to "prove" that the tax amounts were correct, is perhaps one of the major reasons Airbnb is now interested in signing up cities with "secret agreements' to collect taxes. They want the cities to agree to NOT demand all this data, in exchange for the ease of simply having huge piles of money delivered to their doorstep, with no effort on the city's part.
Deborah
Deborahin a few seconds
As Bridget says, Airbnb does collect some TOT /occupancy taxes in some places. They can only do this if they get city/state permission to do it. So they have to proceed one by one thru all cities/states. Also, Airbnb is now working to get cities on board with Airbnb hosting, by offering "secret agreements" to collect taxes. I am not sure how this works -- whether if the city doesn't agree to the secret agreement -- Airbnb would still collect taxes for them. Read more on the issue here:
globalhosting.freeforums.net/thread/2170/collector-refuses-sign-agreement-airbnb
Reply Like 1 reply Delete
Deborah
Deborahin a few seconds
globalhosting.freeforums.net/thread/2170/collector-refuses-sign-agreement-airbnb
Deborah
Deborahin a few seconds
As I understand it, if a host has a listing in a city or state where Airbnb collects TOT /occupancy taxes for that city or state, the host will get a one time message from Airbnb to this effect.
Reply Like Delete