Lodging Tax is a tax that property owners and property managers are required to pay for renting out a room or property in certain states or localities. Other terms that describe lodging tax are: Stay Tax, occupancy tax, room tax, sales tax, tourist tax, or hotel tax.

Lodging tax requirements vary by city, county, region, state, and country. Lodging taxes can be levied on the cost of the stay, a per night, or per person basis.

Property owners are responsible for any taxes associated with renting their property, but some jurisdictions require HomeAway to collect and remit lodging tax for online bookings.

See What lodging taxes does HomeAway collect and remit? for more information.

Topics covered in this article:

How does HomeAway collect and remit lodging tax?
How do I know if HomeAway is collecting and remitting tax?
How are taxes displayed in my dashboard?
How do I collect and remit additional taxes?
What amounts are subject to lodging taxes?
What information does HomeAway provide to my jurisdiction?
How do I know what has been paid to my jurisdiction?
Tax returns
Information travelers see about taxes




 

How does HomeAway collect and remit lodging tax?

HomeAway will collect and remit lodging tax in required jurisdictions when rental bookings and payments are made online in our system. We’ll notify you when we start to collect and remit lodging tax in your area.  
 
HomeAway collects lodging taxes from the traveler at the time of booking and remits the taxes to the appropriate taxing authority when required (either monthly, quarterly, or annually).

Every property owner is responsible for understanding and complying with the laws and regulations applicable to their property listing.

Property owners are responsible for the collection and remittance of lodging tax when:

(a) your property was booked prior to and including the day before HomeAway began collecting and remitting lodging tax in the jurisdiction where your property is located;
(b) the booking is not made by using our online system;
(c) you use alternative payments (which is no longer offered to new listings) not managed in our online system; or
(d) you use external software to integrate with our online system.

Important: Each property owner is responsible for understanding and complying with the laws and regulations applicable to their property listing.

 

How do I know if HomeAway is collecting and remitting tax?

To determine if HomeAway collects and remits lodging tax for a specific property:
  1. Log into your account.
  2. Click Calendar in the left navigation menu
  3. Click Rates.
  4. Click on the gear for Rates settings.
  5. Click Taxes. You will see here what taxes HomeAway is collect and remitting for your listing.

If you don't see any lodging taxes listed, that means HomeAway isn't collecting this tax on your behalf and you remain responsible for collecting and remitting taxes from your guests.

To see a full list of list of jurisdictions HomeAway currently collects and remits taxes for, click here.


How are taxes displayed in my dashboard?

If HomeAway is collecting and remitting taxes on your property, there will be one or two sections shown under taxes:
  • The first section displays taxes HomeAway is obligated to collect from travelers and remit directly to your jurisdiction.
  • The second section displays taxes that are collected from travelers and sent to you to remit to your jurisdiction. This section only appears in select jurisdictions where HomeAway is obligated to collect some of the tax, and you are obligated to collect some of the tax.  HomeAway will monitor the applicable tax rates for you so you can remit the proper amount of tax to your jurisdiction.
By continuing to accept bookings, you agree that you are registered as a taxpayer, and will remit any tax sent to you to the appropriate government agencies. Upon inquiry or audit by any taxing jurisdiction, HomeAway may require you to provide your tax registration number and documentation that you remitted all taxes to the appropriate jurisdiction.

You cannot opt out of HomeAway collection and remittance of lodging tax in jurisdictions where HomeAway is required to collect and remit or has an agreement with the tax authority.
 

How do I collect and remit additional taxes?

If we are collecting and remitting specific taxes for your property, but there are additional taxes you responsible for, you will have to collect these from your travelers separately. You can no longer add a tax through our tax settings page.

To collect additional taxes from travelers you can do one of the following:
  • Make an additional payment request for the tax
  • Collect that tax from traveler on arrival
  • Edit the quote to add the required tax.
You will then need to remit the additional collected tax to your jurisdiction.
 


 What amounts are subject to lodging taxes?

Each jurisdiction mandates different rules that determine what amounts are subject to lodging taxes.

Generally, taxes are applied to the rental amount (money or value) paid from the traveler, including any owner fees (for example, cleaning fee, pet fee, etc.). Refundable damage deposits are generally not taxable, but can become taxable in certain jurisdictions if the deposit is not fully refunded. Some jurisdictions require us to collect taxes on our service fee.

If your listing is located in North America, visit MyLodgeTax to learn more regarding the specific charges and fees that are taxable.
 

What information does HomeAway provide to my jurisdiction?

When a stay is booked and paid for through the HomeAway platform, HomeAway will identify the amount of tax we have collected and will remit it to the jurisdiction.

This tax is remitted on a tax return filed with the jurisdiction under the taxpayer account of HomeAway.com, Inc.

Your name, your jurisdiction tax ID, your company name, address, and/or other details specific to your property will not be identified on the tax return filing because the tax information provided identifies HomeAway.com, Inc. as the taxpayer. The transaction details may be made available to the taxing jurisdiction upon audit and pursuant to the appropriate legal process.

If your jurisdiction contacts you and wants information related to taxes that are being collected and remitted by HomeAway, please refer the taxing authority to HomeAway. You should check the reporting requirements for your specific jurisdiction(s) or consult your tax professional to avoid penalties for not reporting.
 

How do I know what has been paid to my jurisdiction?

This information can be accessed through your payment download report. Click here to find out more information on how to do this.
 

Tax returns

You may still need to file a tax return after HomeAway begins collecting and remitting tax in your area. In many jurisdictions, you are required to submit a tax return for lodging taxes even if the amount of tax you collected is equal to $0. Additionally, if your property is listed on multiple sites, you may still have a tax filing obligation on reservations booked on sites other than HomeAway.

You should check the reporting requirements for your specific jurisdiction(s) or consult your tax professional to avoid penalties for not reporting.
 

Information travelers see about taxes

Starting on the date collection and remittance begins, travelers will see a separate charge called ‘Lodging Tax’ on their traveler quote, which will be added to the total amount they pay for their reservation. The checkout experience for travelers using alternative payments will remain unchanged.

If your traveler made a booking on a HomeAway site before the date HomeAway begins tax collection/remittance, but will check in after the date HomeAway began tax collection/remittance, you remain responsible for collecting and remitting tax associated with that booking. HomeAway only collects taxes at the time of booking. If you have split payments, HomeAway collects all taxes at the time of booking, regardless of the payment schedule.

If your traveler asks you for a tax receipt, please direct the traveler to the Service Fee invoice in the Payments detail area of the HomeAway app.  Taxes are also shown on the traveler’s quote and payment confirmation. After the date that HomeAway begins tax collection/remittance, lodging tax amounts will be clearly displayed to the traveler.

If a traveler asks for a refund of the lodging tax, please contact HomeAway Customer Service or refer the traveler to HomeAway Customer Service.