Chagrin Falls, OH · Member since 2015 · 29 posts · 30 votes
Hello! AirBnB automatically charges our guests their occupancy tax and that tax is on both the nightly rate and the cleaning fee. We don't do the cleaning ourselves, but have a cleaning company take care of this after each stay. However, our cleaning company charges us a sales tax for their fees -- which are the same fees we pass along to our guests. So, is the tax for the costs of housekeeping for my AirBnB being charged twice at two different points in time (once when I pay the housekeeper and once when my guest reimburses me for paying the housekeeper)? If so, is this right and/or how can I eliminate the double taxation on the same service? Thanks for the guidance, as usual!
Chagrin Falls, OH · Member since 2015 · 29 posts · 30 votes
5y
As I continue to think about this, I suppose the cleaning fee is just another form of revenue and that revenue is being taxed. Then I'm using that revenue to pay for service that has it's own tax. The fact that AirBnB splits it out from the nightly revenue is more a matter of marketing (keeping my nightly rates lean) and logistics (one cleaning fee payment regardless of number of nights booked). Calling it a cleaning fee (vs. revenue source) and treating it like a pass-through cost gave it the illusion of being a double-taxed service.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
5y
Only materials used to be taxed. Now in their never-ending quests for $$, some states tax services as well. But not all states tax services.....here is a link to which ones do: https://www.avalara.com/us/en/...
(Of course you're being double taxed....we get double taxed all the time. As long as we keep tolerating it they will keep doing it... :-)