"Use Tax" for Short Term Rental Properties

"Use Tax" for Short Term Rental Properties

Member since 2019 · 3 posts · 1 vote

Hello! 

Ive recently begun using Hostaway to manage the multiple listing channels we currently utilize.  Due to this, we can now receive directing bookings.  Additionally, we now use "stripe" to handle payments through VRBO.  It is my understanding that we now have to manage the use tax ourselves... Up until now this tax was collected automatically.  

Does anyone know the process for paying this tax?  Is there a requirement on how often this must be remitted?  Monthly, Quarterly, Annually? 

Any help would be much appreciated! 


Thanks, 
 

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Thomas William Hileman:

Hello! 

Ive recently begun using Hostaway to manage the multiple listing channels we currently utilize.  Due to this, we can now receive directing bookings.  Additionally, we now use "stripe" to handle payments through VRBO.  It is my understanding that we now have to manage the use tax ourselves... Up until now this tax was collected automatically.  

Does anyone know the process for paying this tax?  Is there a requirement on how often this must be remitted?  Monthly, Quarterly, Annually? 

Any help would be much appreciated! 


Thanks, 
 


 The taxes will be location specific.

See this reply in the discussion

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  • Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    3y

    Does the tax go to a municipal entity?  If so, they would have the answers.  My municipality does it annually.  $50 per year plus $2 per property.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    VRBO and ABNB collect this for you if you want...and send it to the appropriate state/county

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y
    Quote from @Thomas William Hileman:

    Hello! 

    Ive recently begun using Hostaway to manage the multiple listing channels we currently utilize.  Due to this, we can now receive directing bookings.  Additionally, we now use "stripe" to handle payments through VRBO.  It is my understanding that we now have to manage the use tax ourselves... Up until now this tax was collected automatically.  

    Does anyone know the process for paying this tax?  Is there a requirement on how often this must be remitted?  Monthly, Quarterly, Annually? 

    Any help would be much appreciated! 


    Thanks, 
     


     The taxes will be location specific.

  • Member since 2019 · 3 posts · 1 vote
    3y

    Thanks everyone! 

    Yes, previously when we were only using VRBO and Air BNB we elected to have the taxes automatically collected and remitted.  However, now that we are utilizing Hostaway and direct bookings we are required to collect and pay this tax ourselves.  Thats where my question lies.  It appears based on the feedback here that our local municipality is the best place to have that question answered.  


    Thanks!

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Thomas William Hileman:

    You need to contact the local office and ask them for instructions.

    The DIY Landlord Book4.7248 Reviews
  • Rental Property Investor · Huntsville AL · Member since 2012 · 29 posts · 11 votes
    3y

    If you're in the Gatlinburg market, I have a flow chart I can send you with all the links and requirements.  

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Thomas William Hileman, Avalara MyLodgeTax is a service you can use for this. Not sure about the pricing or areas but worth checking out.

    https://www.avalara.com/mylodg...

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