Tax and Fees Notice for Short-Term Rental Business
Tax Collection and Remittance
Please note that by continuing to accept bookings, you agree to acknowledge your status as a registered taxpayer. You are responsible for remitting any applicable taxes to the appropriate taxing authorities. In the event of an inquiry or audit by any taxing jurisdiction, you may be required to provide your tax registration number and documentation proving that all taxes have been remitted accordingly.
In jurisdictions where required by law or through agreements with tax authorities, you cannot opt out of our collection and remittance of lodging taxes.
Your Tax Obligations
Property owners and managers are obligated to comprehend and adhere to the laws and regulations pertinent to their property listings. It is your responsibility to collect and remit lodging taxes in instances where we are not liable to do so. This includes areas where additional taxes may be imposed by tax authorities but are not collected and remitted by us. Property owners must familiarize themselves with their tax obligations.
Overview of Lodging Tax
Lodging tax is a mandatory payment for renting out rooms or properties in specific states or localities. It may also be referred to by various names such as stay tax, occupancy tax, room tax, sales tax, tourist tax, or hotel tax. The requirements for lodging taxes vary across cities, counties, regions, states, and countries. These taxes can be based on the cost of the stay, per night, or per person.
Property owners and managers are responsible for any taxes associated with renting out their properties, except in jurisdictions where we are required to collect and remit lodging taxes for online bookings.
Tax Returns
Even after we begin collecting and remitting taxes in your area, you may still be required to file a tax return. Many jurisdictions mandate the submission of tax returns for lodging taxes, even if no tax was collected. Additionally, if your property is listed on multiple platforms, you may still have tax filing obligations for reservations booked through other sites. Please ensure compliance with reporting requirements specific to your jurisdiction(s) to avoid penalties and interest.
Rental Amounts Subject to Lodging Taxes
Each jurisdiction has its own rules regarding which amounts are subject to lodging taxes. Generally, taxes apply to the rental amount paid by the traveler, including any owner fees such as cleaning or pet fees. Refundable damage deposits are typically exempt, though they may become taxable if not fully refunded. Some jurisdictions may require us to collect taxes on our service fee as well.
About Pay-Per-Booking Fees
For listings using the pay-per-booking model, booking fees apply. These fees consist of a 1% payment processing fee and an 12% commission fee. Note that fees do not apply to Property Damage Protection or Trip Cancellation Protection (Travel Insurance).
Commission Fee
An 12% commission fee is applied to the rental amount and any additional fees charged to the traveler, such as cleaning or pet fees.
Processing Fee
A 1% payment processing fee is applied to the total payment amount received from your guest, including taxes and refundable damage deposits. The processing fee for the damage deposit portion is reimbursed upon refunding the traveler’s deposit.