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356627 Views 1,450 Replies Latest reply: Jan 13, 2014 6:49 PM by grace300 RSS Go to original post 1 ... 50 51 52 53 54 ... 97 Previous Next
  • Contributor 38 posts since
    Feb 16, 2012
    Currently Being Moderated
    765. Mar 14, 2012 6:39 PM (in response to bha)
    Re: Hawaii Trying to Kill VRBO

    BHA,

     

    I have a question - You state you have to pay GET and TAT on a cleaning fee, are you sure that it is not just GET you have to pay on the cleaning fee that you collect?

     

    You do not have to issue a 1099 to your cleaning crew if they are a Corporation, otherwise I agree that anything over $600 paid needs to have a 1099 issued. 

  • mauioceanview Contributor 251 posts since
    Jul 22, 2011
    Currently Being Moderated
    766. Mar 14, 2012 6:51 PM (in response to ajh)
    Re: Hawaii Trying to Kill VRBO

    I called the Hawaii Dept of Taxation on this last summer - the man I spoke with told me I only have to charge GET on the cleaning fee, not TAT. However, if in doubt, please call them.

  • Contributor 93 posts since
    Feb 20, 2012
    Currently Being Moderated
    767. Mar 14, 2012 7:02 PM (in response to mauioceanview)
    Re: Hawaii Trying to Kill VRBO

    When I purchased my vacation rental, the person before me charged TA & GE on the rental amount. The cleaning fee GE was payed by the cleaners. We have even discussed this issue with them. As long as the state is getting paid the ge fee on the cleaning, then I am compliant. They know they are responsible for the GE on the cleaning fee. If I charged the guest the GE and then paid the cleaners this fee, and then they paid tax on that too, that would be double taxation, right? Either way works, as long as both parties know how it is being done. I issue them a 1099 at the end of the year.

  • Contributor 38 posts since
    Feb 16, 2012
    Currently Being Moderated
    768. Mar 14, 2012 7:11 PM (in response to pualanikapoho)
    Re: Hawaii Trying to Kill VRBO

    I pay my GE taxes on the cleaning fee I collect.  Sometimes I do not charge my guest for cleaning or I charge them a reduced amount.  So my housekeeper must pay the tax on what I pay her.  It all gets rather confusing......but if I issued her a 1099 for $1,200 the state would want to see the tax on her return where she paid the GE on the $1,200 for her ID number not comingled with mine.  It may sound like double taxation, but I am not paying the tax twice nor is the housekeeper nor is the guest.

  • New Member 11 posts since
    Feb 11, 2012
    Currently Being Moderated
    769. Mar 14, 2012 7:14 PM (in response to pualanikapoho)
    Re: Hawaii Trying to Kill VRBO

    Thanks all for the info. On the Hawaiian TAT FAQ it states that TAT is payable on accomodation only. Sometimes I charge the exit clean but if the stay is long enogh I will absorb the fee. Regardless the cleaner is paid for each clean and I have filed the 1099. I was under the impression that the cleaner was responsible for the GET portion of the clean.

    Mahalo

  • Contributor 34 posts since
    Feb 19, 2012
    Currently Being Moderated
    770. Mar 14, 2012 7:15 PM (in response to ajh)
    Re: Hawaii Trying to Kill VRBO

    A hearing has been scheduled for HB 1706. See attached link.

     

    http://www.capitol.hawaii.gov/session2012/hearingnotices/HEARING_CPN_03-28-12_.HTM

     

    Meera Kohler

    Sent from my iPhone

  • Contributor 93 posts since
    Feb 20, 2012
    Currently Being Moderated
    771. Mar 14, 2012 7:39 PM (in response to tman5)
    Re: Hawaii Trying to Kill VRBO

    Yes I agree - the cleaner in my situation is responsible for the ge portion.

  • Contributor 93 posts since
    Feb 20, 2012
    Currently Being Moderated
    772. Mar 14, 2012 7:40 PM (in response to ajh)
    Re: Hawaii Trying to Kill VRBO

    Yes, I understand.

  • jwe Contributor 284 posts since
    Feb 18, 2012
    Currently Being Moderated
    773. Mar 14, 2012 7:41 PM (in response to ajh)
    Re: Hawaii Trying to Kill VRBO

    It is my understanding that an excise tax is different from a sales tax, but

    I am not sure exactly how.  I am beginning to suspect that a sales tax is

    paid only on the final retail sale, but an excise tax is taxes at every

    point.  But I do not know if there is an excise tax on top of an excise tax.

    So, in the case of HI, if cleaning was $100, and we paid 104 incl tax, what

    would we need to charge the guest?  104 or (104 x1.04)?

  • mauioceanview Contributor 251 posts since
    Jul 22, 2011
    Currently Being Moderated
    774. Mar 14, 2012 7:59 PM (in response to jwe)
    Re: Hawaii Trying to Kill VRBO

    jwe, in my conversations with the tax department and my accountant, I have been told that the cleaning lady is to charge GET on her services. Then if I pass the charge on to the guest, I charge GET again - yes, the government double-dips. When in doubt, ask your Hawaii accountant or call the tax department. It seems ridiculous, but there you have it.

     

    On Maui many management companies are now charging their guests the cleaning fee (instead of letting the owner absorb it), I have started doing this also except with repeat guests. No complaints so far.

  • rjwnn Contributor 46 posts since
    Feb 23, 2012
    Currently Being Moderated
    775. Mar 14, 2012 8:47 PM (in response to aurorasands)
    Re: Hawaii Trying to Kill VRBO

    Thank you aurorasands!

     

    Folks, here we go again! 

     

    aurorosands has just advised that HB 1706 HD1 has been scheduled for hearing for  Wednesday, March 28, 2012 at 9:30 am. 

     

    We need to submit Testimony again for HB 1706 HD1 and before 9:30 am on Tuesday, March 27, 2012.

     

    See attached link.

     

    http://www.capitol.hawaii.gov/session2012/hearingnotices/HEARING_CPN_03-28-12_.HTM

     

    Here is the link to submit Testimony:

     

    http://www.capitol.hawaii.gov/submittestimony.aspx?billtype=HB&billnumber=1706

  • New Member 11 posts since
    Feb 11, 2012
    Currently Being Moderated
    776. Mar 14, 2012 8:22 PM (in response to rjwnn)
    Re: Hawaii Trying to Kill VRBO

    I am going to rewrite my submission to be more solution oriented as opposed to my last one which was very detailed but may have had a heavier tone.  I will also resubmit the article from Business in Vancouver that alerted the potential negative investment climate that may be created if the first two bills had passed.

  • New Member 14 posts since
    Mar 2, 2012
    Currently Being Moderated
    777. Mar 14, 2012 9:43 PM (in response to rjwnn)
    Re: Hawaii Trying to Kill VRBO

    I wouldn't worry too much about this legislation, in two places it states that it takes effect January 1 3000!!  Apparently proofreading isn't a required skill in the Hawaiian legislative branch,  SB2089 referred to 990 tax forms which apparently really meant 1099 and now this new legislation won't take effect until the next century!!

  • New Member 14 posts since
    Mar 2, 2012
    Currently Being Moderated
    778. Mar 14, 2012 9:46 PM (in response to ajh)
    Re: Hawaii Trying to Kill VRBO

    FYI, the IRS tax instructions for the 1099 form indicate that congress passed an amendment which specifically excludes the need to file a 1099 on rental properties.  My husband called and spoke to a lady at the IRS and confirmed this to be the case.

  • Contributor 34 posts since
    Feb 19, 2012
    Currently Being Moderated
    779. Mar 14, 2012 9:48 PM (in response to mauilizard)
    Re: Hawaii Trying to Kill VRBO

    Don't count on that. It is quite common to have a placeholder date that's in the distant future in draft legislation. The date will be changed in committee. Hopefully to no sooner than January 1, 2013!

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