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Tax collection in Florida


#1

Airbnb starts collecting occupancy tax In Florida starting December, 1. We will still get the same pretax amount, so it means they will pay our taxes for us directly to government.


#2

this is good to know since I launch on Dec 1 for one of my listing and have been using a tax service which charges me a fee so that will be one less ding. for me. Did they alert you? or can you post a link I could read more about it.


#3

Yes they did, they sent me an email.


#4

Yana I did not get the email because I will not have my place ready until Dec 1st myself. I was in the process of registering my place and getting my license to have a tax service collected from my account to pay the 13% monthly to dade county. Can you tell me from what you read that this means that the guest pays the taxes and that part is deposited into Airbnb’s account and not ours? In other words we are not involved anymore in that process?


#7

Thanks, got it! I thought they were collecting occupancy tax, not the sale tax.


#8

Carmen , BillyBob explained it very well, I did not know myself what exactly it ment


#9

OMG I think I would have rather kept it with a tax service and kept it clean. I imagine that there are going to problems in the first few months. Ok that answered my question and will still keep my tax service for my local taxes with Avalara but have to them not to collect Florida Sales tax.


#10

I don’t know where you guys are at But I am in Miami and I didn’t want to list until I had all my ducks in row legally to avoid fines. I think the headaches and major problems for Miami listings will be those that do NOT report of collect taxes and MDC will be notified and there will be a crack down.

What do you think will happen in your areas with illegal listings?


#11

Bob Could you offer another tax id and reregister for all your non AirBnb sources or for only Airbnb Lisitngs?

I can see how this will be a problem Since my other listing I only have on Vrbo in the keys which I manage for my sister. If I wanted my Miami listing on Vrbo as well this would be a major headache.


#13

yikes … I’m glad I don’t have to think about this stuff being in the UK


#14

Gahhhhhh, headache all right! Glad Hawaii is safe from that…for now. I’d still have to collect excise (the “local”) taxes separately. I like doing it myself at the moment. So much easier.


#15

Lol they will become legal I guess. It’s not that hard to get license, I think it’s only 140$, and get papers under control. Many people just don’t di it bcs of laziness not bcs they are trying to avoid paying tax. It’s coming out of guests pocket anyway. Then of course personal income tax but that’s unavoidable as we get 1099 from Airbnb, right Bob?


#16

Yana… yes… occupancy and sales taxes you collect come out of the guest pocket. That’s why I like to get them IN CASH from the guest! (That way they are not subject to the cut that Air takes from us hosts!) Which BB and I have heartily disagreed on in the past… but let’s not go there BBM, I’d rather break biscotti on the lanai with a cup of hot steaming Kona and a sunset. :slight_smile:

I think the guest SHOULD pay state taxes. They are here using our roads, parks and more, impacting our resources, dousing our coral reefs with their sunscreen, bringing in dengue… :slight_smile:

If they went to a hotel… they would pay the 13.42%… So why not here? You just have some additional accounting things to do, which are part of running any business.


#17

Carmen it’s really not as hard as it seems. With Florida sale tax all can be done online quarterly . It takes me 20 min once every 3 months. Same with city of Hollywood. When you register online from there it’s really easy and fun. Then you personal tax return you accountant can do though I do it myself for the past 20 years. They made it so user friendly nowadays that hassle is basically mom existent .


#19

Yup… you pretty much nailed it.


#20

I wish NC would have a compensation fee. How much does FL allow?

Air finally moved to collecting all taxes in NC. It really irked me when they were just collecting the state portion. For those who collect in cash it wasn’t fun trying to explain to guests. I bitched up a storm to Air and my local county. I wonder if you all start complaining to both if they will move to collect the whole thing.

There is a line item on NC tax forms where you can note the amount of Air income that is exempt. It would never have added up if I told the state what part Air owed. The reason being is because the booking fee is taxed in NC. So Air was turning in state tax on rental rate, cleaning fee, and booking fee. And here I was collecting local tax on just rental rate and cleaning. What a PITA.


#21

My county person said I don’t have to let her know what portion to accept from Air. She said they have no idea who Air is even accounting for because it is paid in one lump sum and they just basically have to hope it is correct. She told me just to list my earnings minus the Air earnings.

I’m not saying that’s the way state and counties work in FL. But that is what I found out here if it helps anyone any.


#22

KJ,

How does Air collect taxes in the UK?


#23

I checked with my CPA, the technical accounting term for this is Cluster F*ck!


#24

LOLZ
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