You pay taxes on your NET profit after ALL business expenses. You can deduct the payment to the homeowner, any relevant business expenses (fuel, office, cell phone, internet, etc.) thus this is a great tax reducer.
As far as tax reporting, I have not seen Counties reporting the payment. The reporting is not what triggers the tax obligation though – the fact that you made money does. You do get to deduct your business expenses. Same for the homeowner, he may pay taxes on his net proceeds – he/she can deduct what he paid you though and he will still make money.