I am very new to Airbnb, however I have been listing on HomeAway and VRBO for many years. In my rental area property owners who rent vacation rentals are required to sign up with city, county and state agencies and collect and remit sales / accommodations taxes on the rental amount, which I do. The total is 12.5%, very simple. Airbnb’s suggestion that you should either include the tax in your rental rate or collect it in cash is simply laughable. A multibillion dollar company can’t break out the taxes as a seperate line item? Got to be kidding me.
LOL. I couldn’t agree more.
Air definitely needs to add a line item for tax that doesn’t pyramid and become retaxed. Or find a way to send in the tax for us or something.
It’s not Rocket Science. I assume Airbnb has a few programmers hanging around by the snack bar / ping pong table. HomeAway / VRBO copies a lot of what Airbnb does. Airbnb needs to copy from them as well. There needs to be a separate line item for sales / accommodation tax!
And it can’t be included in what is paid out to you, it needs to be separated so it in itself does not become taxable. Do you understand what I’m saying? The other guy Was not understanding this idea at all.
The lack of ability to delineate on the charges, and collect taxes is a definite hindrance to using AirBNB, I charge more for a rental on Airbnb, since I need to cover the tax. The other problem with Airbnb is they collect the money, but keep it for themselves, until the guest checks in. Home Away deposits the $ right away. Both of these issues lead me to prefer Home Away. Fortunately, most of my guests are through the HomeAway/VRBO company.
I have recently written airbnbb about this. I would encourage everyone write.
In Nashville theffective taxes are 17% on $100 which is too much to fold into the nightly rate.
If enough people take the time to complain, they will change it.
And may I suggest contacting your local tax office? I have, and have suggested they go after airbnb.
I’m on the border of DC so when guests search my price has to compete but at booking they pay the extra taxes if they book a DC room but for me they come out of my profit, BOOOOOO!!!
I know some guests collect it in cash which is totally their call, and when my early novice prices were to low, I did, too, but it was just a pain.
For my DC hotel, I’m paying 14% tax! Is the tax rate different in the burbs, DC?
DC… is Air collecting for you?
You can collect in CASH… which is the only way it makes sense!
I inform my guests a million different ways that their tax is 13.45% on my payout amount and is due upon arrival. Never had anyone surprised. I am there to greet them and have an envelope ready with their name, length of stay and tax amount due written on it.
DC!! Don’t pay the guest tax for them!!! Collect it!!!
It’s 13.5% - I’m in Maryland, just over the line.
I know, I know, I can collect it, and I’m paying tax on my tax - but it was such a hassle when I was collecting it in cash!! I hated having to ask for it - I think it’s totally cool that you do it, but I’ve just decided to not to.
I’ll think about it again - it is so unfair because when guests are shopping our prices are what show up on the search, but then air tacks the taxes on if they book in DC.
(I may have said that already, lol!)
I don’t have the nerve to try booking.com or other platforms where ID is not verified, especially as they are in my home. I was on wimdu for a bit, not much success, and they don’t verify ID.