AirBnB Double Taxation in Florida

AirBnB Double Taxation in Florida

Member since 2020 · 4 posts · 1 vote

I have an AirBnB in Okaloosa County, FL. AirBnB automatically remits taxes when a guest books. Their disclaimer states they pay all city, county, and state taxes on our behalf. However, Okaloosa County’s Clerk of Courts website specifically states in bold letters that no agreement with AirBnB or other rental companies exists, and owners are responsible for paying their own taxes. I paid said taxes with my own money after getting endless referrals to FAQ articles about tax collection from AirBnB, rather than real answers. I’ve called, messaged, and emailed them dozens of times since July. They continue to send me in circles with no resolution. I’ve provided tax receipts and shown them links, as well as screenshots, to the tax collector’s website. 

Does anybody have a resolution? Has anyone experienced the same problem? I don’t want to elevate the issue to any government entities and get banned from AirBnB, as they are 98% of our revenue, despite also being listed on VRBO and booking.com. 

Thank you!

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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
3y

@Kyle Evans

Airbnb pays the state tax on your behalf, but not the county tax in Okaloosa.  

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  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    3y

    @Kyle Evans

    Airbnb pays the state tax on your behalf, but not the county tax in Okaloosa.  

  • Randall AlanPro Member
    Investor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
    3y
    Quote from @Kyle Evans:

    I have an AirBnB in Okaloosa County, FL. AirBnB automatically remits taxes when a guest books. Their disclaimer states they pay all city, county, and state taxes on our behalf. However, Okaloosa County’s Clerk of Courts website specifically states in bold letters that no agreement with AirBnB or other rental companies exists, and owners are responsible for paying their own taxes. I paid said taxes with my own money after getting endless referrals to FAQ articles about tax collection from AirBnB, rather than real answers. I’ve called, messaged, and emailed them dozens of times since July. They continue to send me in circles with no resolution. I’ve provided tax receipts and shown them links, as well as screenshots, to the tax collector’s website. 

    Does anybody have a resolution? Has anyone experienced the same problem? I don’t want to elevate the issue to any government entities and get banned from AirBnB, as they are 98% of our revenue, despite also being listed on VRBO and booking.com. 

    Thank you!

    Not an AirBnB’er, but I would clarify with AirBnB exactly what is being paid on your behalf.  I would think they would generate a report for that.  I don’t see a government agency demanding a tax to be paid twice.  As long as you can document it was paid once the county should be satisfied.  Seems like it is a lack of clarity / documentation at the moment.  Just because the county says there is no agreement doesn’t mean AirBnb isn’t doing what they are supposed to.  For comparison, a title company doesn’t have an agreement with the county , yet they submit all the taxes / documents for the sale of properties and everything gets settled out.  It might just be trying to read too much into the County’s blanket statement on their website.  

    You might also be able to ask the county what taxes have been paid on your unit.  They should be able to generate a report as well.  Between the two approaches I would think you would find the clarity you need.  And if something has been double paid I would think you would be able to request a refund as well from the county by providing documentation, 

    randy 
  • Member since 2020 · 4 posts · 1 vote
    3y
    Quote from @Kenneth Garrett:

    @Kyle Evans

    Airbnb pays the state tax on your behalf, but not the county tax in Okaloosa.  

    Correct. The issue is that AirBnB is collecting county taxes, but not paying them. I have to pay the county taxes out-of-pocket every month.

    Okaloosa Tax Collector website:

    AirBnB:

  • Member since 2020 · 4 posts · 1 vote
    3y
    Quote from @Randall Alan:
    Quote from @Kyle Evans:

    I have an AirBnB in Okaloosa County, FL. AirBnB automatically remits taxes when a guest books. Their disclaimer states they pay all city, county, and state taxes on our behalf. However, Okaloosa County’s Clerk of Courts website specifically states in bold letters that no agreement with AirBnB or other rental companies exists, and owners are responsible for paying their own taxes. I paid said taxes with my own money after getting endless referrals to FAQ articles about tax collection from AirBnB, rather than real answers. I’ve called, messaged, and emailed them dozens of times since July. They continue to send me in circles with no resolution. I’ve provided tax receipts and shown them links, as well as screenshots, to the tax collector’s website. 

    Does anybody have a resolution? Has anyone experienced the same problem? I don’t want to elevate the issue to any government entities and get banned from AirBnB, as they are 98% of our revenue, despite also being listed on VRBO and booking.com. 

    Thank you!

    Not an AirBnB’er, but I would clarify with AirBnB exactly what is being paid on your behalf.  I would think they would generate a report for that.  I don’t see a government agency demanding a tax to be paid twice.  As long as you can document it was paid once the county should be satisfied.  Seems like it is a lack of clarity / documentation at the moment.  Just because the county says there is no agreement doesn’t mean AirBnb isn’t doing what they are supposed to.  For comparison, a title company doesn’t have an agreement with the county , yet they submit all the taxes / documents for the sale of properties and everything gets settled out.  It might just be trying to read too much into the County’s blanket statement on their website.  

    You might also be able to ask the county what taxes have been paid on your unit.  They should be able to generate a report as well.  Between the two approaches I would think you would find the clarity you need.  And if something has been double paid I would think you would be able to request a refund as well from the county by providing documentation, 

    randy 
    Thanks for the suggestion! I’ve reached out to the county to clarify there’s still no agreement in place. I have all the receipts showing I paid, and emails from the county stating our taxes are due. Surely I’m not the only one in this predicament given the popularity of short term rentals in Okaloosa. 

    AirBnB has agreed they owe us a refund, but seemingly nobody there is able to actually process one. They pass us from one department to the next. I have dozens of emails and chats saved. I really don’t know what to do. They state there’s no phone number for their specialized team, but once we submit all our receipts via email they close the case without replying, and when we follow-up they have us start all over. 
  • Randall AlanPro Member
    Investor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
    3y

    If you can reach a real person, I would ask to be escalated to a manager and explain the circular dilemma you are in.  And if that person pushes you off - ask for their manager.  At some point you MIGHT actually get to someone that the other group will pay attention to.  

    I have the same issue with a refund from Egypt Airlines... Been trying for 2 years to get a refund from Covid cancellation and it seems to be totally impossible to reach anyone with authority to act.  Such a P.I.T.A!!!!!

    Best of luck!

    Randy

  • Member since 2020 · 4 posts · 1 vote
    3y
    Quote from @Randall Alan:

    If you can reach a real person, I would ask to be escalated to a manager and explain the circular dilemma you are in.  And if that person pushes you off - ask for their manager.  At some point you MIGHT actually get to someone that the other group will pay attention to.  

    I have the same issue with a refund from Egypt Airlines... Been trying for 2 years to get a refund from Covid cancellation and it seems to be totally impossible to reach anyone with authority to act.  Such a P.I.T.A!!!!!

    Best of luck!

    Randy

    AirBnB will escalate you one time. After that they insist there’s nobody higher and they’ll take care of you. I can’t find phone numbers online or emails. They either ignore us, close the case, or forward us to another specialist. At this point I think I’ll have to go to small claims court once we’re finished with AirBnB. I’m not sure if other owners simply aren’t paying taxes, or if they had a workaround to get reimbursed.  
  • Randall AlanPro Member
    Investor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
    3y
    Quote from @Kyle Evans:
    Quote from @Randall Alan:

    If you can reach a real person, I would ask to be escalated to a manager and explain the circular dilemma you are in.  And if that person pushes you off - ask for their manager.  At some point you MIGHT actually get to someone that the other group will pay attention to.  

    I have the same issue with a refund from Egypt Airlines... Been trying for 2 years to get a refund from Covid cancellation and it seems to be totally impossible to reach anyone with authority to act.  Such a P.I.T.A!!!!!

    Best of luck!

    Randy

    AirBnB will escalate you one time. After that they insist there’s nobody higher and they’ll take care of you. I can’t find phone numbers online or emails. They either ignore us, close the case, or forward us to another specialist. At this point I think I’ll have to go to small claims court once we’re finished with AirBnB. I’m not sure if other owners simply aren’t paying taxes, or if they had a workaround to get reimbursed.  

     Be sure to check for any arbitration clauses in your paperwork.  Sometimes you have already agreed to file court papers in their venue or to arbitrate.  I've sued a big financial company associated with an online auction company and the small claims case definitely got their attention. (Had to sign NDA so can't name names... lol)... but they agreed they were in error and paid me what I was owed.

    Wish you the best! 

    Randy

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