3 Replies Latest reply: Jan 4, 2019 8:51 AM by ron1968 RSS

    Arizona tax being collected by HA

    salexand New Member

      I just got an email stating that HA is going to start collecting and remitting Arizona Taxes effective Jan 1/19.  Currently Arizona charges 11.67% for less than 30 days and 1.5% for more than 30 days.  VRBO changed the tax program a few months ago to only allow for 1 tax rate and it cannot be changed.  How are they going to handle this now?  Are they going to remit all taxes based on the town (i.e. Chandler) that we live in or just State Taxes.  Will these taxes be tied to our accounts so the government knows we have paid?

        • Re: Arizona tax being collected by HA
          feibus CommunityAmbassador

          Are they collecting and remitting ALL of the taxes you are owed to the state/county/city where your VR is located?  If so, leave it to them.  They've assumed responsibility as your booking agent to collect and remit the appropriate taxes.  In the past if you only paid money to the state, then the agreement will cover all of it.  If you did what I have to do in Florida, which is pay the state one amount and the county another, then it gets more complicated.

           

          So... we need a little more details from you about what the tax remittance is like.

           

          EDIT!

           

          I got bored with work and looked it up.

           

          All AZ taxes regardless of county or city is collected by the state (which then remits back to the county/city).  So... it looks like HA is responsible for knowing the difference between a > 30-night rental and one that's not and collecting the right tax rate.

           

          On the other hand, don't give up your tax ID just yet... if you book outside the HA site, you'll end up having to collect that tax money yourself and remitting to the state.

            • Re: Arizona tax being collected by HA
              ron1968 New Member

              I have spoken to the department of revenue and all revenue has to be declared for TPT purposes .  Regardless of whether its an over 30 day rental

              or paid by home away .   You enter the total revenue paid by your customers  then use the deduction codes to reduce your liability for revenues earned through an approved online marketplace such as airbnb or home away .  Those that choose to not file or declare the revenue are wrong .  

              Those that choose to not be licensed are in violation .   The deduction codes are easy to view when you do your return online .   I found them right away .   

            • Re: Arizona tax being collected by HA
              homeaway_community_manager HomeAway Employee

              Hi salexand,

               

              As of January 1, 2019, HomeAway is responsible for collecting and remitting Arizona state, county and city lodging tax applicable to online lodging marketplaces on transactions booked and paid via the HomeAway platform. The combined Arizona lodging tax rates and rules vary by city and county, however, using the city of Chandler as an example, the rate applied to stays less than 30 days will be the combined state, county and city rate and the rate applied to stays over 30 days will be the city rate of 1.5% only. The system will apply the applicable rates automatically.

              When a stay is booked and paid for through the HomeAway platform, HomeAway will identify the amount of tax we have collected and will remit it to the jurisdiction. This tax is remitted on a tax return filed with the jurisdiction under the taxpayer account of HomeAway.com, Inc. Your name, your jurisdiction tax ID, your company name, address, and/or other details specific to your property will not be identified on the tax return filing because the tax information provided identifies HomeAway.com, Inc. as the taxpayer. The transaction details may be made available to the taxing jurisdiction upon audit and pursuant to the appropriate legal process.

               

              Thank you.

               

              Erinn

              HomeAway Community Manager