25 Replies Latest reply: May 10, 2019 12:59 PM by ha-moderator-michael RSS

    Do we get proof HomeAway paid guest stay tax?

    lljpence Contributor

      It's always something.

       

      Of the 11% total tax our property rental tax charges, only 7% is being paid by HomeAway. 6% to the state and 1% to the county.  I will need to remit 4% to the county.  So odd to me that it is split in this way.  I would like an understanding of that split. What tax number are they paying it under? I assume it is under their purview as I haven't given them my tax number.  I use MyLodgeTax to pay my taxes.  I get a receipt of payment.  Will we get one from HomeAway every month?  Will we see the withdrawal from our checking account guest by guest or a total once a month? What if I get a booking outside of the HomeAway site, will it confuse things if I pay the entire amount of the tax via MyLodgeTax?  It was so simple and direct before this.

        • Re: Do we get proof HomeAway paid guest stay tax?
          moosebigd Active Contributor

          All of your questions, as well as all other threads and postings about taxes, are good.  But where is your rental located?  It would be helpful for everyone asking these questions to mention their state and county so we might assess the relevance of the situation to our rental property in Horry County, South Carolina.  Thanks!   

          • Re: Do we get proof HomeAway paid guest stay tax?
            feibus Senior Contributor

            My understanding from all the threads on this already:

             

            1. It's paid under the HomeAway tax number.  Homeaway finally agreed with the state that they are the "Booking Agent" (that's a Florida term in law) and is responsible for collecting and remitting the state tax.  They don't have agreements with most of the counties, so your county will still want you to remit the 4% you've been paying all along.

             

            2. The best place to see what taxes are being remitted is in the download you get from the payments page on your listing's admin area.  It has a breakdown of taxes paid.

             

            3. When it comes time to file taxes, you are not responsible for reporting or remitting the taxes the state will collect from HA.  You just collect/remit the bookings you made outside the platform.

             

            Yes, it's definitely confusing when it comes to accounting for all this.  I use Quickbooks and I think the right way for me to handle these bookings is to mark them as just being taxable to the county and rentals outside HA are taxed at the state + county rate.  And then I just account for the money being remitted to me.

              • Re: Do we get proof HomeAway paid guest stay tax?
                swlinphx Premier Contributor

                It's paid under the HomeAway tax number.  Homeaway finally agreed with the state that they are the "Booking Agent" (that's a Florida term in law) and is responsible for collecting and remitting the state tax.  They don't have agreements with most of the counties, so your county will still want you to remit the 4% you've been paying all along.

                So will HomeAway be keeping the tax options for us to collect tax based on percent as it is now, or are they taking that away now that they are paying tax?  As you say there may be additional tax, etc.

                  • Re: Do we get proof HomeAway paid guest stay tax?
                    feibus Senior Contributor

                    If you're in Florida, the tax rate setting is gone from your listing (the menu pick is there, but they blocked what you can do).  HA is making themselves the responsible party for determining the tax rate for each property, but owners should check regularly to make sure the rate is correct and complain to CS when it is not.

                • Re: Do we get proof HomeAway paid guest stay tax?
                  georgygirl1955 Senior Contributor

                  I can answer this very simply in one word

                   

                                         NO

                  • Re: Do we get proof HomeAway paid guest stay tax?
                    hmmmm Senior Contributor

                    Our City Treasure office, informed me that if a Platform collect our hotel taxes, for us.  We need to keep a record of these payments.

                    Should we be audited, we need to have hard proof that they have been paid in our behalf.

                     

                    Call your city and or country treasury office and get the straight facts in order to protect your self.

                      • Re: Do we get proof HomeAway paid guest stay tax?
                        lakensea Contributor

                        From reading the new Maine tax ordinance pertaining to this situation, HomeAway is issued a State of Maine resale tax certificate, which they in turn are supposed to provide me with a copy for my records (which they have not, but I am still on alternate payments until October 2019).  When I submit my monthly sales tax return, I list my HomeAway sales as "tax exempt" and my off platform sales as taxable.  HomeAway is remitting all Maine lodging taxes collected as a lump sum to the state, not attributable to any specific taxpayers.  However, they are supposedly submitting when they collect them at time of payment, however, they are not reportable and due until the taxpayers return is due.  In some cases, it is in the month following the actual sale (date of stay).  In my instance since I am seasonal, it is every 6 months.   I can't see how the state can reconcile any of this.  I guess they are trusting HomeAway.

                         

                        By the way, Happy Holidays to all on this forum from Eden Rentals in Bar Harbor, Maine (although I'm currently in Massachusetts this week).

                        • Re: Do we get proof HomeAway paid guest stay tax?
                          wiser-after-50 Contributor

                          And why isn't Homeaway required to prove and document these tax payments to the owner, with a breakdown and verification that payments have been made and with specific details?

                        • Re: Do we get proof HomeAway paid guest stay tax?
                          gbpack5 New Member

                          For Arizona owners:  The way I understand it is VRBO should complete a form #5018.  This form will establish that VRBO assumes liability for collecting and remitting the taxes.  If owners do not have this form correctly completed, then the liability will fall back on them. 

                           

                          ** Any help in interpreting this is greatly appreciated!  I've asked for the form to be completed but received a response that the tax team confirms it is not necessary.  I asked a second time for them to please look into it further, I am still awaiting a response.

                           

                          AZ_5018.png

                          • Re: Do we get proof HomeAway paid guest stay tax?
                            ha-moderator-michael HomeAway Employee

                            lljpence Here is an updated response to your original questions.


                            Q: Why are my taxes split between state and county?
                            A: The 6% state tax and any discretionary surtax required for your county are payable directly by HomeAway to the State of Florida. Discretionary surtaxes vary by county, but are always payable to the state. County-level taxes may be payable to the state or locally, depending on your county and the taxes applicable to you. It sounds like your county's tax is locally administered. In Florida counties where HomeAway does not have an agreement to collect/remit, and tax is locally administered, HomeAway sends applicable tax to you for remittance to the county.

                            Q: Under what tax ID number are my taxes being paid?
                            A: When HomeAway enters an agreement to collect and remit, or is identified as the tax-responsible party by law, the responsiblity and liability for the collection and remittance of taxes on lodging shifts from homeowners to us. As such, HomeAway is remitting under its own tax ID and does not provide jurisdictions with a detailed listing of properties or owners.

                            Q: I use MyLodgeTax to pay my taxes and receive a receipt of payment. Will I receive the same from HomeAway?
                            A: Owners are, in accordance with HomeAway's agreement with Florida, not required to file under their own ID for bookings paid through HomeAway from December 1, 2018 and would not require receipt of payment. However, you can see a breakdown of traveler payments in your dashboard in the Payments download report.

                            Q: Can I still use MyLodgeTax to report bookings outside of HomeAway?
                            A: For bookings completed outside the HomeAway platform, you should continue to collect and remit taxes and file tax returns as usual. You can still use the MyLodgeTax service to file your tax returns for bookings received through all platforms. For questions about how to file using MyLodgeTax, please contact MyLodgeTax customer service for assistance.