taxes

Hotel Occupancy Tax FAQs

Airbnb

As of May 1, 2017, Airbnb began collecting and remitting the 6 percent state hotel occupancy tax on Texas short-term rentals booked through the Airbnb website.

The following are frequently asked questions from Airbnb Hosts and the answers:

When did Airbnb begin collecting and remitting Texas state hotel occupancy tax?

On May 1, 2017, Airbnb began collecting and remitting Texas state hotel occupancy taxes on behalf of all hosts for all bookings on the Airbnb website from that date forward. Hosts will no longer be responsible for collecting such taxes on Airbnb rentals and will not have an option to opt-out of collection by Airbnb.

Do Hosts need to report Airbnb rental receipts or taxes collected to the Comptroller after May 1, 2017?

Hosts should not report any of their Airbnb rental receipts to the Comptroller on the Texas Hotel Occupancy Tax Report (form 12-100), either in Item 4 "Total Dollar Amount of Receipts" or Item 5 "Total Taxable Receipts" for any Airbnb bookings made on or after May 1, 2017. Airbnb will report rental receipts and remit state hotel occupancy taxes to the Comptroller for its Hosts' rentals.

Are Hosts responsible for state hotel occupancy taxes collected on Airbnb rentals prior to May 1, 2017?

Yes. Hosts are responsible for collecting state hotel occupancy taxes and remitting to the Comptroller. Any bookings Hosts have through Airbnb prior to May 1, 2017, must be reported to the Comptroller.

Are Hosts responsible for state hotel occupancy taxes on bookings/reservations made prior to May 1, 2017, for stays that occur after that date?

Yes. Hosts are responsible for state hotel occupancy taxes on bookings/reservations made prior to May 1, 2017, regardless of when the guest actually occupies the short-term rental.

Are Hosts responsible for local hotel occupancy taxes after May 1, 2017?

Many cities and certain counties and special purpose districts impose a local hotel occupancy tax. Hosts may be responsible for local hotel occupancy taxes imposed by taxing jurisdictions where their short-term rentals are located for both Airbnb rentals and non-Airbnb rentals. If Hosts have further questions regarding local taxes, they should contact their local jurisdictions for more information.

What if Hosts use non-Airbnb websites for their short-term rentals?

The collection and remittance of Texas state hotel occupancy tax is required for all short-term rentals (unless an exemption applies). Although Airbnb is handling the tax for bookings on its site, Hosts are still required to collect and remit the tax for bookings made on non-Airbnb rentals.

Can Hosts who only offer short-term rentals through Airbnb close their hotel occupancy tax accounts with the Comptroller after May 1, 2017?

Yes. Hosts may close their state hotel occupancy tax account if, after May 1, 2017, they offer all of their short-term rentals through Airbnb. Hosts who do not close their accounts must file reports showing zero receipts or be subject to a $50 non-filer penalty. Hosts may still have reporting requirements for local hotel occupancy tax on Airbnb rentals within the city, county, or special purpose district that impose a hotel occupancy tax. If Hosts have further questions regarding local taxes, they should contact their local jurisdictions for more information.

Can a Host exempt guests who quality for exemption from state hotel occupancy tax after May 1, 2017?

No. Airbnb treats all rentals of 29 days or less as taxable. If an exemption applies, Airbnb will refund the guest directly, and will maintain necessary documentation to support the exemption.

What should a Host do if they are audited by the Comptroller for short-term rentals booked through Airbnb?

Hosts are not liable for state hotel occupancy taxes collected by Airbnb after May 1, 2017. Instead, Airbnb is responsible for state hotel occupancy taxes collected after May 1, 2017.

In the event of an audit, Hosts can view detailed information about their Transaction History located in their Airbnb account through Airbnb's website.

Where can Hosts find information about the taxes Airbnb has remitted on their behalf?

Hosts can view detailed information about their Airbnb bookings any time in their Transaction History, located in their Airbnb account.

Will Airbnb report to the Comptroller any personally identifiable information regarding the Hosts or Guests on its Texas Hotel Occupancy Tax Report?

No. Airbnb will not report any personally identifiable information regarding the Hosts or guests on its Texas Hotel Occupancy Tax Report to the Comptroller. Airbnb will only be reporting total receipts and total taxable receipts for each city and county.

Can Hosts claim the 1% Timely Filing Discount on Airbnb rentals made after May 1, 2017?

No. The person required to file a Texas Hotel Occupancy Tax Report may deduct one percent of the amount of the tax due as shown on the report as reimbursement for the cost of collecting the tax. As of May 1, 2017, for Airbnb rentals, Airbnb is required to collect state hotel occupancy taxes and is required to file a Texas Hotel Occupancy Tax Report. Therefore, Hosts may not take the timely filing discount. Hosts may continue to take the timely filing discount on non-Airbnb rentals.