Nashville loves Airbnb — it’s a hugely popular destination for short- and long-term guests of the city. It looks like the feeling’s mutual. Starting March 1, 2018, Airbnb and other companies will collect taxes directly from renters and remit to state and local authorities. That’s great news for anyone (like me!) who are renting all or part of their Nashville home.
Local city and county commissioners voted to impart a hotel occupancy tax on short-term and vacation rentals that are registered through rental portals like HomeAway, Airbnb, and VRBO.
So what does this local tax mean?
When someone books your rental on sites like Airbnb, they’ll see a line for local and state taxes. Under the new law, Nashville and Davidson County will now consider your rental to be a hotel accommodation.
The new law will officially go into effect on March 1, 2018. Until then, you’ll need to collect the taxes from your tenants. While it may sound like a hassle to get transferred over, it will be nice to not file taxes for the state and local level for each property come tax day.
So you do still pay taxes on your rental? Yes. Airbnb will make sure the local and state taxes are paid without sharing your private information. You’ll still be responsible for property taxes and other related expenses.
If you’ve got questions about investing in Middle Tennessee or logistics of hosting a short-term rental, feel free to email me – or better yet, call me directly at 615.988.0355!