HomeAway, VRBO to collect taxes on bookings in Arizona, Iowa, and Kansas beginning January 1
- Dec 21, 2018 | Jennifer Sokolowsky
HomeAway and VRBO will start collecting lodging tax for its hosts in Arizona, Iowa, and Kansas on January 1.
In Arizona, HomeAway and VRBO (which is owned by HomeAway) will begin collecting state transaction privilege tax, county excise tax, and local transient occupancy taxes on behalf of hosts for all bookings as of January 1. Arizona passed a law earlier this year requiring all short-term rental online platforms to collect and remit state and local taxes on short-term rentals.
Airbnb already collects taxes on Arizona short-term rentals booked through its platform as a result of a voluntary agreement reached with the state in 2017. Airbnb collects state transaction privilege tax, county excise tax, and local transient occupancy tax on short-term rentals.
For more on short-term rental taxes in Arizona, see our Arizona Vacation Rental Tax Guide.
In Iowa, HomeAway and VRBO will begin collecting state and local hotel and motel tax on January 1. Airbnb has been collecting state and local hotel and motel tax for Iowa bookings since November 2017.
If you’re a short-term rental host in Arizona or Iowa, you’re still required to register with the state and file regular lodging tax returns, even if an online platform is collecting and paying taxes for you. MyLodgeTax can help short-term rental hosts comply with lodging tax registration and filing obligations.
HomeAway and VRBO will also start collecting state retailers’ sales tax, local sales tax, and local transient guest tax for bookings in Kansas on January. 1.
Airbnb already collects state retailers’ sales tax, local sales tax, and local transient guest tax for Kansas hosts. It also collects city-administered transient guest tax for bookings in Leavenworth.
In Kansas, short-term rental operators who have more than two bedrooms for rent must register with the state and file regular tax returns, regardless of whether their online rental platform collects taxes on their behalf.
While Airbnb collects taxes for hosts in far more locations, HomeAway has added several jurisdictions to its tax-collecting list this year. These include New Jersey, Maine, Idaho, Oregon, and Washington states; Los Angeles and Santa Monica, California; Portland and Multnomah County, Oregon; and Pinellas and Orange counties, Florida.