sandralist

So the Paris you save up your money to visit is being seriously altered by AirBnb, which doesn't pay any taxes to the city and, if it did, would look to acquire political clout in Paris to advance its own American-based business interests (probably already does) ahead of the needs of residents, undermining democracy in Paris.

MmePerdu

Nukesafe, with regard to local occupancy taxes in the US (nothing to do with France), I live just outside a relatively small town and am required to pay the county a 10% transient occupancy tax on my Airbnb income for bookings less than 30 days (all of them). When I found it about it, I went to the county office, signed up, paid the tax I owed for the past 6 months I'd been using the site and was told, "You're doing the right thing" by the clerk who took my money & issued my license. I realized at that point that the county does nothing to enforce the regulation, and I may be the only one in the county paying the tax. It only applies to those of us outside town limits, the municipalities are free to have a tax or not, enforce it if they have one or not. When there's such confusion among governmental entities, multiplied by thousands of them, and when there isn't enforcement of statutes that exist, is it any wonder that both hosts and the company wait, for the most part, until someone steps up and compels them to report and us to pay up? For my part, I just write my quarterly checks because I don't want to think about consequences. 10%, by the way, does not seem minuscule to me. I assume it's less where you are.

kerouac

All revenue from holiday rentals must be reported as of January 1st, 2016. This will probably cause a certain number of properties to go off the market, but probably not all that many. I would still advise people to avoid any rental that requires a payment in cash -- this screams "illegal."

sandralist

Enforcement of tax laws is incredibly expensive. Your tax bill would go through the sky if Federal, state, county and municipal governments actually had to go out and enforce tax compliance. Tax paying in the US, at almost every level of government, an "honor system" backed up by dire threats of disporportionate penalites, fear of turn-your-life-inside-out audits and show trials of celebrity tax cheats so the little folk aren't tempted to cheat to pay up because all that trouble wouldn't be worth.

When new posters come onto Fodor's and whine they got a ticket driving in a foreign country -- and how were they supposed to know the rules? The signs were confusing, nobody at the rental office or tourist office ever mentioned they needed a special pass, blah blah -- and the oldster posters can't WAIT to pounce and scold: You're expected to know the law.

I'm more than a little surprised that somebody place their home on the commercial rental market but doesn't check with their local authorities about zoning laws? Licensing? A change in property tax status?

Ok. I believe it. But if you are expecting your cash-strapped, under constant assualt from demagogues state and local public employees to come knocking on your door to hand you pamphlets about your taxes, they won't. They can't afford it. The taxpayers revolted and left without the resources,

Up to you to be good, informed citizens.

If I worked in a county office, I'd never argue with anybody over their back taxes and penalties. Last time I needed to deal with public employees in the US, I walked in, past 2 armed guards, and the staff were all sitting behind bulletproof glass. I felt so sorry for them. I think it is amazing they come to work at all -- but then again, they probably need the jobs or don't have a big enough property to put on AirBnB. For their trouble, they only get criticized by every self-absorbed lazybones about not doing more to tell people how to take responsibility for their own lives and not break the law.

sandralist

(Yes, I'm moralizing. But the attitude that people in America display toward their own deteriorating communities and civic institutions -- "hey, not my reponsibility" -- is pretty destructive to people who can't afford to spend months out of America every year.)

fuzzbucket

It's "fuzzbucket", happygoin...
Since you feel the need to re-hash left-overs from TA, here goes:

My apartment was rented legally, since as a resident, I had the right to do so for up to 4 months. I declared all revenue, accepted only direct bank transfers for payment so I would have a paper trail, and paid appropriate taxes to the French government. If you care to see the statements prepared by my expert comptable, as well as my US tax info, I will happily send you copies - as long as you agree to provide similar information about your personal affairs.

As for the other comments - I presented the other side of the coin when I discussed some of the more common problems associated with vacation rentals. Not all of them - not by a long shot - are managed well or well-maintained. Not all of them are comfortable, not all of them are what first-time visitors expect. This is important for people to realize, especially if they've never rented abroad.

Those of you who always rent from the same companies when you visit Paris, or have a larger budget than many other people, will not face these problems. I cannot count the number of people I see on a daily basis in the Marais who wait hours trying to get into their apartments - and who are not happy about it.

One last note - apartments normally do not have central air-conditioning systems, because residents don't feel the need to install units which will only be used a couple of weeks during the year. Some have portable units which are not very effective.
If you're coming to Paris in the Summer, you will need dependable central air-conditioning, and almost all hotels provide that.

pariswat

Nuke and others :
Welcome to France (and Europe).
There is a culture of tax evasion and black market here - don't know if it is the case in US, but when we are taxed about 50% we like to evade the fisc.

(50%... I just got my and of year bonus, believe me, it IS 50% taxe (actually more).

Then welcome to our intricate intenal laws and miscommunications : our left hand doesn't know what the right does.

I got a visit from an inspector working for European community and wanting to make a study on revenues in Belgium - one of the first things she said was 'don't worry we will not forward your info to the fisc (!).

So NO, the revenues are mostly NOT declared. I realize now that you are mostly honest people (no, I'm not talking about you Happy), so you didin't get this basic..

Why would they declare revenues when they can avoid it ? AirBnb was not required to pass on any info on them - so they were transparent.

Let me again tell you this story of my renting a BnB in Paris (rue St Denis, close to the prostitutes actually, but I diverge) : I rented in July and I got the invoice nr 2 (because I asked for it) : the guy was renting his appartment every week, I never saw it on Booking.com because it was never free (he told me so too) and he does ... 2 invoices on 6 months - 180 nights !!!!

That is tax evasion.

so Iris, re-read my previous posts taking into consideration that about none of these revenues are declared. You'll understand better

So now, when AirBnb will pay the residence tax they are obliged to do, they will indeed push on that button and send their file with all rented nights from all their apartments to the french authorities. Who will discover who rents for how much. And tax them.

With the potential impact of raising the prices for rentals. Because NET revenues of non declaring apartments owners will be drastically lowered.

Money, it is all about money...