Sales/Lodging Tax reporting

[Michael Routh]

Colorado and Montana STR owners:

I use Ownerrez (VRBO, Airbnb, direct booking site). I have seen mixed opinions on reporting to the Colorado and Montana Department of Revenue as it relates to Sales Taxes and Airbnb bookings. 

1. Report your gross rental income, then list the Airbnb as exempt total because they pay taxes on booking coming in through them.

2. Do not include Airbnb bookings at all because Airbnb reports these bookings.

The total tax due does not change. Just the reporting. 

Which is correct?