Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
March 21 — Homeowners who offer flats, futons and fabulous views for rent on home-sharing services including Airbnb Inc. and HomeAway Inc. will receive notices from San Francisco’s Assessor-Recorder that they have to itemize and pay taxes on each toaster, mattress and television used in the residence.
The notice going out the week of March 21 is the latest in San Francisco’s push to ensure all taxes are paid by hosts offering crash pads for short-term rental. This also marks the first full year the city’s short-term rental registration and tax ordinance is in effect, Assessor-Recorder Carmen Chu told Bloomberg BNA.
“When people think about property taxes, naturally the thing people think about is land and improvements. But also there is a second” tax many businesses in the San Francisco area already file for covering tangible property used in a business, Chu said March 18. “It is a lesser-known tax and that’s why we thought it was important to get the message out to our constituents.”
“Middle class families shouldn't have to pay extra taxes on their sheets. This invasion of privacy mandates that San Franciscans inventory and pay taxes on every picture frame, towel and spoon in their home,” Airbnb said in a statement.
Airbnb’s statement, e-mailed to Bloomberg BNA March 18, said the taxes were optional and not mandated by state law, but Chu disputed that point. She pointed to Calif. Rev. & Tax Code Section 441(a), which requires all business owners to file taxes. Rev. & Tax Section 201 states all property in California is subject to taxation.
“We’re disappointed that that’s the position they’re taking on it because I think they could have and could play a helpful role in helping” hosts, Chu said. “Honestly, this is new for many of us so we’re going to be seeing for the first time what the impacts are going to be for San Francisco.”
Those who registered must file the 571-R form on April 1 and are considered late after May 7. An updated version of the form will be posted on the Assessor-Recorder's office website.
Property owners will list and describe the property used in the short-term rental, when it was acquired and the purchase price. “We will be the ones to apply any depreciation factors to help come up with the current assessed value,” Chu said. “All we’re asking people to do is give us as much information they can.”
In 2014, Airbnb began paying taxes to Portland, Ore., and San Francisco, Airbnb’s hometown, in 2014. The October 2014 ordinance covering San Francisco-based Airbnb, HomeAway and HomeAway-owned VRBO.com (Vacation Rentals by Owner) requires registration and payment of the 14 percent transient occupancy tax. Some 2,000 properties were registered .
Airbnb last month agreed to collect lodging taxes in Alabama, while Louisiana this month expanded the definition of hotels for tax purpose collection to include short-term rentals .
The company reached earlier agreements with Illinois, Florida, North Carolina, Rhode Island, Philadelphia, Phoenix, San Diego and Paris.
Airbnb Jan. 15 launched a partnership with H&R Block to help hosts file tax returns in the U.S. and pay income taxes.
To contact the reporter on this story: Joyce Cutler in San Francisco at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan Tuck at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)