Lodging Tax Rate

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Samster

Samster

Well-known member
Joined
May 30, 2008
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Location
South Carolina
What is the lodging tax rate for your location? Our local government is proposing a 1% increase next year which will put us at 8%!!! (Higher than the largest metro area in the State.) We will be back at 14% taxes on January 1st with the sales tax here if this goes through. Ouch. Right now folks are "enjoying" only 13% for a few months.
 
12% in total - 6% sales (to the state) and 6% lodging (to the town). 1/2 of the lodging tax (3%) goes to the town visitors center.
 
7%. The state wanted to raise it to 10% but the lodging associations fought it and won.
 
7% state, 5% hotel and I don't see one penny of my hotel tax going to anything worthwhile! Last year the town "had to" spend the 15K in reserved hotel tax or "lose it", the chamber (who controls it) proposed an "electronic signboard" to advertise "what is going on in the town. Hmm, lets see, middle of nowhere, nothing going on to "advertise in lights". (and of course they would not use if to advertise private businesses like hotels). I made my feelings known about it's use, they never got the signboard however I never found out what the funds were actually used for - lesson: get involved (like we all have time haha) in how those hotel tax funds are being used
 
3%
Hotels pay 6%.
Plus 6.75% sales tax on food only... which means $0.37 per person per night.
=)
Kk.
 
Lincoln, NE has 12% which is made up of 6 taxes for city, county and state.
 
Since my city had no lodging facilities when the Legislature enacted the hotel tax, did not enact the ordinance to collect said tax. Since our County CVB was destroyed in a "little boys peeing contest" between two cities in this County who one would receive 1/2, I asked the Council to stop the enacting of the ordinance that I had asked them to do.
Therefore, I collect 6% WV sales tax - period.
 
In my Parish (AKA county for most of US) Hotels collect 11 3/4% Taxes (4% state, 4% city, 3% Tourism) B&B's w/5 or less rooms only collect the 3% Tourism Tax.
I feel your pain agoodman1963, but as with almost any gov. agency it will take a massive revolt to get things to change. Been there, done that! In our area they have used the money to open 2 tourist info centers with 6 part-time emp. and a full time staff of 11-15. In my 10 years open, how many guests have they brought me....less than a handful just another gov. money pit.
One thing that they have done that has helped kick off some tourist growth is to issue grants (with some of the 3% tax) to non-profit groups that host annual events such as our Wooden Boat Festival, or Heritage Festival etc. This has taken a good 5-6 years to see the profit in hotel stays but it has helped some. (So to be fair...they may have helped indirectly to more guests at my door, but only because of the grants, not work on their part!)
 
Thanks, all for the feedback. All lodging properties have been asked to respond to the City on this and I intend to formulate a reply. We will be higher than the largest metro area in our State if they increase this tax!! And our total tax is higher than all of you who have responded. We just had some guests from Europe here who were astounded by the taxes. I think that they are trying to enact this increase prior to the completion of a major tourist draw here.
 
Samster, I have noticed that if it is voted on by the people, it is far easier for the tax to be passed because local voters do not see it affecting THEIR pockets.
I have one other issue you can use in your battle. You should make note of the number of accommodations that are within 30 or so miles of your county. Since I know your area fairly well, I know that there are quite a few. Also make note of their average rates and taxes. If the tax rate goes up, more visitors will look at surrounding areas for lodging. I am finding that tourists are looking at the total charge for a stay more and more, mostly because a lot of hotels have started charging tack ons - subject for another thead - but they are starting to ask more!
 
Copperhead said:
Samster, I have noticed that if it is voted on by the people, it is far easier for the tax to be passed because local voters do not see it affecting THEIR pockets.
I have one other issue you can use in your battle. You should make note of the number of accommodations that are within 30 or so miles of your county. Since I know your area fairly well, I know that there are quite a few. Also make note of their average rates and taxes. If the tax rate goes up, more visitors will look at surrounding areas for lodging. I am finding that tourists are looking at the total charge for a stay more and more, mostly because a lot of hotels have started charging tack ons - subject for another thead - but they are starting to ask more!.
Click to expand...
Thanks, yes I've thought of that with regard to other lodging nearby, especially across the river.
This will NOT require a vote. How about that?
Just read a quote from someone in another area in the State where they wanted to raise the lodging tax and he said, "The economy is not good, business has weakened - taxes are a hot button for our customers". We have gotten a 1% reduction in our sales tax as of Oct. 1st. January 1st another special tax will go away but a new one taxes its place so we would stay at 13%. If the City does this, we're back up to 14%.
Seems crazy to be higher than everyone around us, as you said.
 
Just as a note for inspirings (this won't help you, Samster) - if you are buying a turnkey operation, ask for a copy of last year's lodging tax payments. Get the ones that the town furnishes (the owner will probably have to request them, and they will black out other lodgings' contributions). It is another way to verify the income from rooms running through the B&B.
 
Samster said:
Copperhead said:
Samster, I have noticed that if it is voted on by the people, it is far easier for the tax to be passed because local voters do not see it affecting THEIR pockets.
I have one other issue you can use in your battle. You should make note of the number of accommodations that are within 30 or so miles of your county. Since I know your area fairly well, I know that there are quite a few. Also make note of their average rates and taxes. If the tax rate goes up, more visitors will look at surrounding areas for lodging. I am finding that tourists are looking at the total charge for a stay more and more, mostly because a lot of hotels have started charging tack ons - subject for another thead - but they are starting to ask more!.
Click to expand...
Thanks, yes I've thought of that with regard to other lodging nearby, especially across the river.
This will NOT require a vote. How about that?
Just read a quote from someone in another area in the State where they wanted to raise the lodging tax and he said, "The economy is not good, business has weakened - taxes are a hot button for our customers". We have gotten a 1% reduction in our sales tax as of Oct. 1st. January 1st another special tax will go away but a new one taxes its place so we would stay at 13%. If the City does this, we're back up to 14%.
Seems crazy to be higher than everyone around us, as you said.
.
Click to expand...
Not surprising that no vote is required - once the law was enacted in WV to allow the increase from 3% to 6%, the country or town governments could enact it with a vote at their own regular meetings. Most did it almost immediately - the county enacted it less than one month after the state approved it, on June 1. Our town at least waited to enact the change until January 1, so we didn't have people showing up with reservations confirmed at one tax rate now being asked to pay another. We didn't argue against the increase, just asked for the delay. DH was on the council at the time and chair of the finance committee. Tourists don't vote.
 
5% state sales tax plus 6% city lodging tax (new as of August 2008)
 

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