Smoky Mountain Airbnb Tax Collection Question

Smoky Mountain Airbnb Tax Collection Question

Member since 2020 · 15 posts · 6 votes

I use MyLodgeTax (Avalara) to assist in my collection and remitting of state taxes for my Cabins in Gatlinburg and Sevierville. I'm not sure I am collecting the correct amount from Airbnb.  According to Avalara, Airbnb collects and remits state and county sales tax and I should only collect the additional 3% hotel tax (or 3.19 if I include license renewal fee) This all makes sense.  What's unclear to me is how to set this up properly on Airbnb.  It looks like they have a default setting which collects the proper state and sales tax like Avalara says.  But in order to add the additional 3% to be collected, I have to switch to Airbnb's "Custom" setting and manually add the taxes.  My question is do I just add the 3% hotel tax, or do I have to add ALL of the taxes? Does Airbnb no longer collect and submit any taxes on their own if I choose "Custom"? I currently have manually added all of the taxes and am worried that I am double collecting.  I've attached a pic to show how I have my Airbnb set up.  Does anyone who manages a similar situation have any advice?  Thanks!

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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    6y

    @Josh Madigan


    The way you have it is fine. Could also do the following... 

    Default.

    Ad 3% “management fee”

    Pricing Settings/Standard Fees and Charges/Other Standard Fees/Management Fee

    I charge 4.5% no one has ever said a word. 

    I also charge a $50 linen fee on one of my properties. Again. No one has said a word. 

    There’s no wrong way to do what you’re asking. Just need to educate yourself so you know whose paying what. 

    You could theoretically not bother with any of this junk and charge 3-4% per night more than what you think your house is worth and do it that way. 

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6y

    Airbnb has a custom setting?

    Can you add a pet fee here?

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