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Updated over 6 years ago on . Most recent reply

User Stats

71
Posts
29
Votes
Sean Wilt
  • Investor
  • Savannah, GA
29
Votes |
71
Posts

Motel/Sales Tax as line item or just bury in the daily rate?

Sean Wilt
  • Investor
  • Savannah, GA
Posted

Good evening,

I am getting ready to list a new property on AirBnb/VRBO and I am wondering what the best way to handle Hotel/Motel and Sales Tax.  Since this is Georgia, I have confirmed that AirBnb will NOT automatically withhold and remit the tax on my behalf so I have to manage it on my own.

My question is, I have seen a few listings in my area that line item the tax out on the booking so the renter sees and and pays it along with the nightly fee and cleaning fee.  To me, that just seems like a bunch of line item add-ons to the nightly fee which could turn off a potential renter.  I feel like just charging a straight nightly fee that was large enough to cover the taxes, would be a better approach.  However, I also know that a higher basic nightly fee could be harmful from a competitive perspective.

Any thoughts on the best way to do this? I will need to pay 13% tax between the two obligations so it's a fairly large number.  I would expect to get about $60k-$80k revenue/year on the property.

Thanks!

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