The Town of Winter Park charges 7.0% tax for short term lodging rentals that is not collected by VRBO.
VRBO's stated answer in a customer service email to me:
"For taxes that you still need to collect you will need to add a note in your listing letting the travelers know there will be a 7% additional payment for the city taxes, once you receive a booking request you will need to calculate the 7% rate and send your traveler an additional payment request."
Thank you for the prompt response.
You must realize however that this is a completely unacceptable solution. In no uncertain terms is it appropriate to quote and sell rental nights, and then charge an additional 7% after the fact... Regardless if there's a note in the listing or not.
You need to do better than this... Immediately.
The level of incompetence shown by Homeaway in this situation it's staggering. No notification to homeowners regarding this change, no ability to add taxes you don't collect to the tax page for a seamless total tax calculation for the renter, and poor customer support solutions.
While I am sure none of these issues are your fault, it is pathetically unprofessional and amateur."
VRBO continues to fail it's owners and it's customers while taking money from us all for the privilege.
I had a lengthy discussion with VRBO on this yesterday. They still have not been able to program their system to accommodate this issue. To top it off, in addition to not collecting for the locale (Frisco for us), they are also collecting on services and their service fee they charge. I told them services are not taxable and my reporting to the locale will be different than theirs since i will not be having my renters pay unnecessary taxes.
We either have a choice to collect these after the fact or to pony up the taxes ourselves. I for one am looking to move to Air BNB vs VRBO due to the inadequacies they seem to have in making platform changes. They rolled out the taxing assessment way too early and had not perfected it whatsoever.