Does VRBO charge renters a fee for making tax remittances

Does VRBO charge renters a fee for making tax remittances

Investor · Evanston, IL · Member since 2016 · 4 posts · 0 votes

The taxes in my area are 13.5% on the rental amount. However, I notice that the amount that they claim to be remitting to be 15%. That is,1.5% higher than the actual taxes due. Is VRBO charging renters a fee for making the tax payment?  Thanks.

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    I have never noticed that. Very curious. Do you think there might be another fee they are collecting?

  • Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
    3y

    They may be collecting on behalf of a forgot about municipality (county, city, village, state) besides the dominant municipality. 

  • Investor · Evanston, IL · Member since 2016 · 4 posts · 0 votes
    3y

    Michael Baum: They are definitely charging about 1.5% on top of the required taxes. I visited my own property, without logging into VRBO, and choose a rental period. Then reviewed the booking summary. There is not one word about a fee being charged on top of the taxes, but amounts are 1.5% more than what is required. They do not mention the tax % ... only the amount. I imagine that no renter will have any idea what the legally required tax amount is. 

  • Investor · Evanston, IL · Member since 2016 · 4 posts · 0 votes
    3y

    Nancy Bachety: That's not the case here. There are three mandated taxes. State, County and local that add up to 13.5%. But VRBO is charging renters 15%. 

  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    3y

    I just double checked mine and on my listing the percentage is the exact same as Airbnb.  Both 13.5% in Osceola county, FL.

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  • Investor · Evanston, IL · Member since 2016 · 4 posts · 0 votes
    3y

    I just discovered what is happening.

    VRBO is computing the tax due on the combination of the rental amount plus the fee they charge renters. 

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hmmm. So there are 2 answers here, opposite each other. I will have to check and see where we are.

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