So I contact Airbnb several months ago because i got an irate call from Navajo Nation Tax Commission who indicated I needed to remit Hotel Occupancy Tax. Which we said we were fine doing. We had contacted them at the start and no one ever returned our call. But the lady starts threatening me with audits and other threats tho I assured her I was fine remitting HOT. I want to be a law abiding host. Not sure why voluntary compliance would initiate threats but I figured she probably is dealing with someone in her head that isn't me.
We remit taxes and we told them for our area to really ensure host compliance to go through Airbnb and have it administered at point of sale. Because the type of taxes that are being required is 13% in addition to state and also for us hosts federal. Which would be about 50% of the listing. I told air it was not fair when they said they wouldn't collect HOT for the tribe at the point of sale they would have to be asked to do so.
Well the state of Utah comes in and expects its Tax to be remitted. We are on the border of Utah and Arizona. I understand that 99% of air listings do not fall within a border tax issue.
I have to contact air now because they are automatically remitting Utah State Tax on listings that are physically in Arizona. When I first registered on Airbnb, when I registered for Monument Valley, AZ the pointer placed my location in Kayenta, 24 miles away. Where the zip code is from but extends to the Stateline. Software says I cannot list a rural address with this zip code and move my pointer to the legal spot and how location of our listing on the border of Utah and Arizona. literally. I don't fault Airbnb for not knowing how to handle border issues and their software but thought they might benefit from knowing.
This is not helped by the fact that Navajo Nation has no street USPS delivery despite the fact we pay for our POBs. Meaning we have no 911 or other address identical to hotels in our area. Which has been a thread in our listing.
So I told Airbnb in no uncertain terms that come Tax time this mistake will be addressed by the state of Arizona who will want their taxes that air has voluntarily remitted to Utah without consultation.
Yes I now get a notification that air is remitting AZ State Tax.
Joy. Right. Well except they are still collecting Utah state tax for our listings.
If you google monument valley AZ most people don't. But if you did would you find our listing as accurate if we listed under 86033 and was forced to point to a physical location 25 miles away and restricted by air software from placing at the accurate location. That we are allowed to use 84536 we thought would resolve the issue until air could get back to it
Well I am three months without an answer. Further I was asked by Airbnb staff to provide documentation that would show them our Arizona listings should not be paying Utah tax.
Which goes back to the Sovereign Navajo Nation. Who they rejected collecting taxes on behalf of. Maybe not answering their calls was a factor by air, maybe the tax commission targeting hosts in our area and not going for a point of sale tax with air. Not sure. But air is volunteering to collect Utah or Arizona Tax and asking me for documentation on who pays what Tax to what state I stead of the agency who has physical legal mandate to do so. THe Navajo Tribe who's calls they didn't answer.
So our guests are being charged for state tax and the wrong state after air was notified. It's been more than 3 months and they are collecting taxes for anyone but the Navajo Tribe who should be remitted to first and foremost.
I feel as if I'm trapped in a huge bureaucracy that will stun me like a poisoned fish. Even through they have the capacity to resolve this.
I feel that as a host I'm an outsider trying to tell Airbnb our problem and getting form answers. I told them we should put a questionnaire in the forums. Should Airbnb collect for the states before and without tribal consultation with the NAvajo tribe for tax collection and remittance for 17 listing in our area and what happens to us as hosts when they all come calling for their taxes but air has not resolved.
So I love Airbnb. I love our guests. I love my tribe but I feel that they should be remitted Tax first before the state and all are legal. I feel that we as tribal hosts will be penalized. And for criticizing air on a racial tax issue could get my listing deleted.
I'm just stressed out. It's been three months and my Arizona guests are paying Utah tax and there's nothing I can do.
What happens when taxes are being remitted except for the Sovereign tax and they come to me when air should be collecting and send the Navajo SWAT to my listing and who's gonna defend me against payments made to Utah?