Well, L.A.'s occupancy tax is 14%. So, if I charge $95/weekday and $102/weekend and someone booked Monday through Sunday that would be $679 room rate and then the city would get a whopping $95.06 on top of that. It’s a little insane, but what’s nice is that now with the city taxes going through Air, I can honestly tell guests I have nothing to do with them. It’s all done without my involvement. If they agree to the booking – taxes and all – just as they would when booking a regular hotel, then that’s what they agree to pay.
Wow. With all the tax added on, at least for your listing, a guest might be swayed to just go book a regular hotel/motel room that could possibly have more amenities and privacy rather than staying in a room at someone’s home.
1 Like
It would be nice if the price Airbnb displays on your listing’s photo in search would include any and all taxes being charged, just like you see if you book a hotel through Expedia or Priceline. This way, it would be easier for us to set prices based on competition and easier for guests to know what they would be paying upfront.
1 Like
If price is a factor, then not really since hotels in our area average $200-$300 per night in August. Even the fleabag motels around me where I wouldn’t consider staying start at $180 a night. And, staying at any of those is a 14% occupancy tax just like my guest room. SO, given that I offer a clean comfortable room with nice towels and sheets, and the personal service I give, I’m still a damn good deal. 
3 Likes
I know when booking hotels on expedia and similar services I generally only see the base price when searching. I don’t get with all the other taxes and fees until I book, and then WHAM! So, if you look at other places in your neighborhood using hotel searching tools you can get a good idea of how the prices compare since the taxes will be similar.
Well of course you (we) are. I don’t know what you charge, but a private Airbnb room in my area (SoCal, ocean view or else very near) I’ve never seen anything approaching $180/night. I always chuckle when I drive past the Motel6 up the road from me: $91/night. This time of year they are booked most nights :o It’s very near the uni so I’m getting their overflow :)))
I don’t know a single Air person in my area that pays hotel taxes. I declare the income, but I do not collect any local tax.
1 Like
Yes jackulas, to get an idea what to charge people for our Palm Desert place I look at VRBO, pick out a similar property and pretend to book. They save the “good news” for last when you get ready to book. That’s when you see everything itemized and the price goes up on average $600 to $800 more for a monthly rental like our 2-bed, 2-bath condo on a golf course.
In Hawaii, they make it impossible not to collect excise and TAT because these numbers have to square with your income tax. Anyone who is self employed has to have an excise tax license and return and you have to report all gross income, no matter the source. I kinda wish we didn’t!
1 Like
Hello Lucy! Do you know what (is standard) or can be deducted from city taxes due on my Airbnb besides the cleaning fee? It’s in Idaho. Thanks Wendy
Just searched this topic. So in CO, the state collects their state tax and it is upto each city to collect their own. In our area, every municipality has signed up to let airbnb collect the local tax. My properties are in Aspen. And of course, typical Aspen, the offer Airbnb is making to them will not work. They want the ability to audit all the properties. The only other city that Airbnb has this agreement with is San Francisco.
Here is the article in yesterdays paper. I have been in contact with the city and explained to them how difficult it is to file with them. They are losing tax revenue because of the process to file. And if they come to an agreement with Airbnb, they will collect revenue from anyone who is renting.
Anyway, if anyone has any thoughts on this let me know.
Very interesting. It seems that Aspen is wanting access to a host’s detailed information so the city can keep a tight rein on property owners. Do you consider this a bad thing? I would mean that some could no longer fly under the radar and escape paying taxes.
The one thing I noticed that I thought would be very unfair is CO considering the total payout by Airbnb to owners including Airbnb fees for using the platform.
yes, i thought the same thing. Getting taxed on airbnb fees. It is so ridiculous. I plan on attending the next council meeting.
And yes they want detailed info. Which i dont understand. They will get their taxes if they allow Airbnb to collect them. Right now i bet less than 20% of the renters are paying taxes.
Wow. Only 20% you think? Ouch. It’s unfortunate that more taxes and fees will get heaped on the consumer and staying at Airbnbs will no longer be a cheaper alternative to travelers.