Michigan Sales/lodging tax collection and payment

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Michigan Sales/lodging tax collection and payment

Nick M.
Real Estate Investor · Sterling Heights, MI · Member since 2009 · 71 posts · 14 votes

Could VRBO users from Michigan provide some clarity about the topic of sales tax/lodging tax collection and payment to the state.

I am just starting out with a STR and found that VRBO is not very specific if they are collecting the tax and paying it to the State as a marketplace facilitator or am I responsible for this tax collection and payment ?

Is the tax the 6% sales tax?

Thanks

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    1y

    So VRBO, according to Avalara, doesn't collect lodging taxes.

    You might want to go to Avalara - https://www.avalara.com

    And read up on what they can do to help.

    When I looked it up on VRBO, they don't list Michigan at all for remitting taxes so I would give them a call.

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  • Nick M.
    OP
    Real Estate Investor · Sterling Heights, MI · Member since 2009 · 71 posts · 14 votes
    1y

    @Michael Baum

    Thanks again Michael.

    BTW - Are you using both platforms? Or more than Vrbo and Airbnb ? Any insight into what or how many platforms should be pursued? I just set up my vrbo account and still some finer details about planning the communication, cleaning service, maintenance persons, etc…

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    1y

    Hey @Nick M., so we list on AirBNB and VRBO. Nothing else.

    Every other platform doesn't have the reach that the 2 big ones have and in some cases are very owner negative. Guests rule and get away with murder.

    Right now we have about 75% of our 2025 bookings through VRBO. We just got a new booking yesterday from AirBNB. 

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  • Nick M.
    OP
    Real Estate Investor · Sterling Heights, MI · Member since 2009 · 71 posts · 14 votes
    1y

    @Michael Baum

    That’s good to know - thanks! We’re excited to get our first booking and while we still have some work to do at the house, we listed it with availability starting in late April. We should be done by then and have everything in place. Do you use a “book” for information or an online service ? That is one of our next projects…

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    1y
    Quote from @Nick M.:

    @Michael Baum

    That’s good to know - thanks! We’re excited to get our first booking and while we still have some work to do at the house, we listed it with availability starting in late April. We should be done by then and have everything in place. Do you use a “book” for information or an online service ? That is one of our next projects…

    We have a book. A good 'ol fashioned 3 ring binder that gets updated at least once a year.

    If a place opens up nearby or there is a new thing to do, I get the booklet or whatever with the info. Easy to do IMHO.

    Some folks use a tablet with a service but why complicate things I say.

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  • Nick M.
    OP
    Real Estate Investor · Sterling Heights, MI · Member since 2009 · 71 posts · 14 votes
    1y

    @Michael Baum

    Every property we ever stayed at had a physical book so yes - it definitely suffices.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    For larger accounts with PMS integrations VRBO is a passthrough and we are the merchant of record.  When you put in the settings for state and local tax it should be clear what is collected and what needs to be remitted to each authority.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
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