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Updated over 6 years ago,
Hotel/Sales Tax -- paid for by renter via AirBnb??
I'm in massive research mode for first STVR investment. Feel I have a pretty good handle but surprises still come up! I am looking at an area that has a 6% hotel tax and 7% sales tax. I have been putting these numbers in my spreadsheets to estimate profit/cash flow. Obviously at 13%, it takes a chunk for sure but the properties I am looking at still look good.
Well.... learning today in a few places that AirBnb charges the renter the occupancy tax? How do they determine how much? Assume it is not in the advertised price (like a Hotel), just tacked on in the final fee?
#1 is that correct?
#2 Does AirBnb pay it directly to the jurisdiction the property is in or to they remit back to me?
#3 I heard AirBnb is the only one that does this (not the others like Bookings.com, VRBO/Home Away. Is that true? If so, that's fine, assume you just have to account for it on your own if the property rents via those platforms.
Thanks!