VRBO just began collecting and distributing tax to the state of Colorado today. I checked and saw that they don't have our local metropolitan district tax included in the fee so every payment going to the state will be short. Customer service said that I just need to contact each renter, let them know there is an additional fee and collect those dollars separately. Oh sure, customers won't mind me telling them the rental will be more than what they signed up for. We'll be paying that out of our rental earnings as well. Which is really a double whammy because VRBO will report those dollars as income even though we are actually paying it out as tax dollars.
It also messes up the payment to the state for us. Colorado has an on line tax form, they collect for the state, county and local taxes and distribute them to the proper place. If I put in the amount of rental income I have, it will want to automatically calculate what I owe in state and county tax which VRBO will be collecting and remitting. I anticipate quite the headache trying to pay my quarterly taxes until they figure this out. One would think that since they have experience with other states, VRBO should have this down to a science by now. It shouldn't be difficult to add a local line item. Why would state rates and county rates be doable, but not local? Even if we have to remit it separately out of dollars VRBO collects and sends us, they should be able to collect it along with everything else. In fact, under the "taxes collected in Colorado" tab, VRBO states they are collecting local taxes, though they aren't. They are just collecting state and county.
VRBO still has instructions on how to change the tax you are collecting, but the fields they tell you to use to do so are not there any longer. I suspect they were disabled when they became responsible for collecting in Colorado.
I have 2 properties in Colorado. On one of them the taxes were correct. On the other one, which is in the exact same neighborhood and almost next door, the taxes were incorrect. They were adding a 1% local tax that does not apply to my properties. I called CS and they fixed it immediately.
I would suggest calling CS and telling them which tax they are missing and they will add it for you. Maybe this is wrong but I am assuming I do not have to pay taxes or report revenue through revenueonline anymore for CO? Please correct me if that is wrong.