State Lodging/Sales Tax ?

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I pay quarterly
39% (9 votes)
I pay monthly
52% (12 votes)
I never pay
9% (2 votes)
Total votes: 23

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Mary in Virginia

 

Proud Texan's picture
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We also have a 2% County Tax that we have to pay monthly.

Joey Camb's picture
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they were talking about bringing in a lodging tax in York (city near us) and in Birmingham another big city and our main compeition for conferences which would be $2 per room let per night - however don't think they have thought it through as how would you prove how many nights you had let? etc and how would it be collected and how often? Birmingham's idea was the money would be ring fenced then to only be used for tourism and to either advertise events or subsidse them ie 10,000 people come to see the darts organiser wants $2000 to come to birmingham rather than anywhere else then the money could be used for that - you would easily make the money back in hotel stays for fans, film crews (darts world cup was huge) family etc and the spend of all these people. Plus the advertising that you get from the city's name being mentioned all the time and shots of the city etc all the time.

I personally woudn't object to that here but feel it would be a faf on to collect it and I would have to be sure it was being used to promote and get events.

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gillumhouse's picture
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camberleyhotelharrogate@yahoo.co.uk wrote:

they were talking about bringing in a lodging tax in York (city near us) and in Birmingham another big city and our main compeition for conferences which would be $2 per room let per night - however don't think they have thought it through as how would you prove how many nights you had let? etc and how would it be collected and how often? Birmingham's idea was the money would be ring fenced then to only be used for tourism and to either advertise events or subsidse them ie 10,000 people come to see the darts organiser wants $2000 to come to birmingham rather than anywhere else then the money could be used for that - you would easily make the money back in hotel stays for fans, film crews (darts world cup was huge) family etc and the spend of all these people. Plus the advertising that you get from the city's name being mentioned all the time and shots of the city etc all the time.

I personally woudn't object to that here but feel it would be a faf on to collect it and I would have to be sure it was being used to promote and get events.

That is similar to a tax we have here. It is called Business & Occupation tax. Quarterly, businesses fill out a form from their cities with the amount of revenu they collected and then they pay the percentage for their type of business. As a Service business, I pay .005%of my revenue (or to make it easier 50 cents of every $100) GROSS revenue. Rentals pay more (apts). Contractors pay $2 per $100 but they seem to be the only ones who manage to pass it on to the customer - I know not why other than they just build it into the price and it is not an extra line item. If I raise my price to cover it, I will just be paying more tax and it would be a bear to add. (Retail pays 34 cents per $100.)

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Occupation tax is different than lodging property tax or taxes that are paid by the guest, collected by the lodging property, and remitted to the collecting agency.  Usually lodging tax is used to promote tourism and/or set aside for entities as determined by the local governing body (here, some goes to an alliance for sports and recreation).  Occupation tax is what you pay for the privelige of owning/operating a business within a municipality.  There's a coding system for businesses within the U.S. which is what they use to determine where your tax falls.  There are some areas that don't require that tax for B&Bs, probably also don't require B&Bs to have a business license. 

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Silverspoon's picture
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 In our town and state, we are not required to collect the room tax but we ARE required to have a business license, pay tax on the furnishings of the B+B, pass the water test, fire inspection and health inspection.  We are required to be Serv Sa fe certified as well.  

Not having to charge the room tax allows us to be quite competitive with the larger places where guests are not only charged the additional 10% tax but may also have to pay a "resort" fee, tip housekeeping and pay for  wifi.

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Madeleine's picture
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Oh, that works out well! No tax can really lower the price. We used to stay at a place in upstate NY where the lodging tax was 14%. We always stayed when they had their 2 for 1 sale, but it was still a chunk of change!

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gillumhouse's picture
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Yes, I know the difference, I was referring to her refernce of collection difficulty - how do they know how many nights. B & O is also self-reporting although they are starting to get to use tax records to nail non and under payers.

Many areas here (cities & counties) have the 6% lodging tax and more and more cities are enacting the "head tax" - if you work in that city you pay $1 to $2 per week deducted from your check and it is usually used for street repair on the premise these people are using the streets even if they do not live there.

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A "head" tax is not uncommon and has been around a long time.  I had to pay it when I worked in downtown Denver and lived outside the city and county...that was back in the 1980s!

gillumhouse's picture
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WV is loathe to enact any extra taxes - people do not take it lightly. Potholes big enough to cause car problems make for convincers.

Skamokawa's picture
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Annually here, by the end of January for the previous year.

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State sales tax was paid monthly, but they went to a quarterly payment system right after we closed the biz.  We have several local and special option taxes here in addition to the State sales tax which also get remitted to the State.  Some of those local taxes were (and are) not subject to collection by lodging properties. 

Local lodging tax was paid monthly, and still is.  

Breakfast Diva's picture
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In my area we only have to pay the 1% state lodging tax. There are two hotel/motel properties near us that charge the guests a "surcharge". When you book online, it is called 'tax' (which it's not). It's totally ripping off the tourists. I looked up the regulations on the state site and they can legally do it if they offer room service. Both these places have a restaurant they own, but I don't think they actually offer room service. Because our tax is so low, most people would have no idea they are paying more than they should.

I guess technically, I now have room service with our dinners, so I could add an additional 8-10% surcharge, but I would NEVER do that. It's just a ripoff. It's just another way to get more money in their pocket instead of increasing room rates. In my opinion, they are also ripping off the state because if they had higher room rates the state would get more money in it's coffers.

By the way, this 1% state tax is to promote tourism.

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Breakfast Diva wrote:

In my area we only have to pay the 1% state lodging tax. There are two hotel/motel properties near us that charge the guests a "surcharge". When you book online, it is called 'tax' (which it's not). It's totally ripping off the tourists. I looked up the regulations on the state site and they can legally do it if they offer room service. Both these places have a restaurant they own, but I don't think they actually offer room service. Because our tax is so low, most people would have no idea they are paying more than they should.

I guess technically, I now have room service with our dinners, so I could add an additional 8-10% surcharge, but I would NEVER do that. It's just a ripoff. It's just another way to get more money in their pocket instead of increasing room rates. In my opinion, they are also ripping off the state because if they had higher room rates the state would get more money in it's coffers.

By the way, this 1% state tax is to promote tourism.

If you served food HERE BD you have to pay meals tax on every item (the guests would). 

Taxes are paid by guests, we just get to do all the paperwork and pay the powers that be. 

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Breakfast Diva's picture
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That's one of the great things about my state. No sales tax. LOVE IT

Arks's picture
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05/22/2010

Yes, that's being discussed here, padlocking the place unless they pay the estimated $19,000 (with penalites) they owe. The state would sure do it if they weren't paying in the state taxes they collected.

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gillumhouse's picture
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I pay quarterly - sales tax only. Since I live in the city limits of a municipality that when the Legislature created the "bed tax" had no lodging in city limits, they did not go to the expense of enacting an ordinance to collect said tax. Therefore, I cannot legally collect it.

At first I was quarterly, then they decided I did not collect enough and was changed to annually. THAT was a nightmare as it was payable in January! In the last couple years I am back to quarterly - YEA!!

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We don't collect state tax either, our state is 5 and under no tax.  But we do have local hotel tax that is collected quarterly.  We went the rounds like Maddie but they finally settled on quarterly. 

Silverspoon's picture
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 Not required to pay because of size.  Specifically exempted from charging and collecting state and local room tax. The state seems to know that small (3 rooms or fewer) B+B's plow their meager profits back into the historic homes that house the B+Bs.  

Arks's picture
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Silverspoon wrote:

...exempted from charging and collecting state and local room tax. The state seems to know that small (3 rooms or fewer) B+B's plow their meager profits back into the historic homes that house the B+Bs.  

Taxes don't come out of profits, technically. You just tack them on to what you would charge anyway, then pass them on to the government. You're just a collection agent. It only "costs" you money if you let yourself think those taxes you collect are yours, rather than the government's. Then it really hurts to send them in! It helps to put the taxes collected into a separate account daily so you don't get the idea that money is yours to keep.

Of course, since every other place around you would be collecting them too, charging the taxes wouldn't hurt your business any more than it hurts larger places.

We've had an interesting situation here in my little town, which has a 2% advertising and promotion tax that goes for upkeep of our community center and ball fields. A local restaurant had not paid their AP tax in over 2 years and the city finally investigated. Seems the restaurant had been tacking an extra FOUR percent (in addition to regular sales taxes) on each sale all this time, calling it taxes on the customer's bill, and pocketing all the money! The city is not happy.

gillumhouse's picture
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They have CLOSED restaurants in the county seat for not paying their sales taxes.

Madeleine's picture
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Silverspoon wrote:

 Not required to pay because of size.  Specifically exempted from charging and collecting state and local room tax. The state seems to know that small (3 rooms or fewer) B+B's plow their meager profits back into the historic homes that house the B+Bs.  

Which really has nothing to do with collecting sales tax from guests and sending it to the state... The guest pays the tax, not the property. (I know you know that. So there must be some other reason your state has chosen not to require small properties to collect tax.)

We went round and round with the state on collecting lodging tax. At first we had to send it quarterly, then we had to send it monthly, then we had to send it quarterly then back to monthly. It was insane. They kept saying, 'You don't make enough to send it in monthly. Wait, you're making too much to send it in quarterly. What happened you're not making enough to send it in monthly? Hold on, you're keeping too much money back from the state each month, send it monthly.'

We're finally stuck with monthly. It's all online. We calculate the lodging tax collected and set it up so the state can take it on the 15th of each month. They finally seem happy with that.

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Madeleine.....this why I posted this question. I am going through the same thing with the state of va. Back and forth ...monthly, quartly, now they want monthly on line (electronicly).    Sad

Innkeep's picture
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06/04/2008

The state of Virginia must have figured out that you have lots of spare time now that you retired from your other job!

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03/11/2009

Possibly ...but at times I think its "job security" as they about 2xs a yr send a letter that I didnt pay .So I get on my bank account on line & print off the check they cashed ! "job security" .Its like VDOT throwing their lunch trash on the road ,then picking it up the next day. :Sad(

Generic's picture
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02/24/2011

I collect three... room tax is payable quarterly. Provincial and federal are payable annually with quarterly provisionals. (So I pay them quarterly, but the final report is only due at the end of the year.)

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Joey Camb's picture
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mine is the never pay one - we don't have it!

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