So I got a notice that air will collect and pay taxes to the county of Riverside CA starting Feb 1.
So they already are screwing it up, my Feb bookings that have come in since the notice still have me collecting the tax, it shows as upcoming in my payout. So likely a year from now Air will claw it back out of a future payment. I am not impressed.
On one hand it evens the playing field, everyone will now have the tax added to reservations so that is good. Now I am waiting for the prompts from Air to lower my prices! Lol, not that I ever follow advice from them.
The tax authority sent an email, I will still have to file a quarterly return with a line item for specifically AirBnb reservations which will get zeroed out.
So I still have to file quarterly there is 0 benefit to this host. Had I never paid or set up with the tax man I would be better off, Air would collect and I would do nothing. Good guys finish last
RR
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Maybe they actually mean that they will collect for bookings that occur after Feb 1? It seems like they would want to specify a date to start collecting tax based on the booking date rather than reservation date since hosts can have Airbnb reservations booked for years out.
They said they would collect and remit for bookings starting Feb 1
So whatever that means… The tax man said the same thing, Air will collect and remit.
So I will get paid the tax until they fix it and be on the hook. I will look at my channel manager and see how to stop collecting tax on Air bookings and let air handle it.
Edit: I just changed the setting on my channel manager to stop collecting the tax for AirBnb only going forward, although I have about 1/2 dozen bookings post feb 1 that I have/will collect the tax on. At least no more after this.
I did the same thing, RR, got a biz license, an “accessory homestay” license, and paid state sales tax and local lodging tax from the get-go. I’m even paying business property tax on my washer/dryer and pub table set, which I bought new for the rental.
Airbnb screwed up my all-inclusive rate by only collecting and remitting the state sales tax. Apparently I can push some buttons and do a “pro host” reprogramming where I again remit both sets of taxes?
I also have to continue filing to avoid a penalty, even with $0 sales tax. I usually have some private bookings that require me to pay separately however.
I had not heard of that, I am sure Air will screw this up. There is no way for the tax collector to know if they are being paid the right amount because 1/2 the hosts never paid to begin with and Air is not sharing hosts info. I really do not like them between me and the tax collector because in the end I am responsible if they decide Air screwed up
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