Atlanta Taxes & Current Ordinances

[Derrick Baldwin]

Hi fellow Atlanta investors,

My wife and I operate a few STRs in several ATL neighborhoods, and we've recently run into a couple of puzzling issues on the Airbnb platform. We're hoping to compare notes with other local hosts.

Issue #1: "Property Use Tax" Calculation

On our recent payout summaries, we've noticed a new line item for "Property Use Taxes" which is calculating out to 10% of the gross booking revenue.

My research indicates the City of Atlanta Hotel-Motel tax is 8%, in addition to state and local sales taxes. I can't seem to reconcile how Airbnb is arriving at this 10% figure under that specific name.

• Question: For other hosts in Atlanta, are you seeing a "Property Use Taxes" line item? If so, is it also calculating at 10%, and have you been able to determine which specific taxes this covers?

Issue #2: Exorbitant Taxes on Stay Extensions

We've had three separate instances where a guest extended their stay by just a few days. In each case, Airbnb applied a massive tax charge to the short extension. For example, on a property with a nightly rate of ~$130, a two-day extension triggered several hundred dollars in additional taxes, which makes no sense. Airbnb support has unfortunately been unable to resolve or explain this.

• Question: Has anyone else experienced this? Is there a known glitch where altering a reservation causes the tax to be grossly miscalculated?

Navigating Atlanta's STR Ordinance

Finally, on a related note, we are aware of the city's rule limiting an individual to two STR permits (one for a primary residence and one additional unit).

• Question: For those who operate more than two STRs, how have you structured your business to remain compliant with this city ordinance? We weren't as concerned about this before, but now that we're receiving taxes directly that should be paid from stays at the permitted property, we're becoming more concerned about how to proceed.

We've been hosting for a while and haven't seen these specific tax issues (#1 and #2) before. Any insights from your own operations would be greatly appreciated.

Thanks for your help!