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Updated over 7 years ago on . Most recent reply

User Stats

35
Posts
22
Votes
Christian Scully
  • Mortgage Loan Originator
  • Providence, RI
22
Votes |
35
Posts

VRBO local tax collection in RI

Christian Scully
  • Mortgage Loan Originator
  • Providence, RI
Posted

According to law changes in 2015 in Rhode Island, if a property is rented out for less than 30 days and the owner used a "hosting platform" to book the rental, the responsibility is on the hosting platform to collect an remit any sales and hotel taxes. 

Here is where I am getting my information: 

http://www.tax.ri.gov/Tax%20Website/TAX/notice/Sho...

http://www.tax.ri.gov/Tax%20Website/TAX/notice/Not...  

We started renting a unit on Airbnb a couple months ago. They make tax collection and remittance simple in Rhode Island, by doing in on the owners behalf, which according to the law is what they are supposed to do. 

We are setting up a listing on VRBO and found they do not collect and remit taxes in Rhode Island, and listings do not charge taxes. Our question is how is a company as big as VRBO not following a state wide tax law that has been in effect for 3 years? 

Does anybody else use VRBO in RI and how are you dealing with tax? If it's their responsibility, can property owners be fined if taxes are not paid? 

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