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Room rate is $125 - no taxes...is this legal?

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bbinnsitters

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I just booked a room and was told she doesn't take CC - just checks and cash. I am ok with that, but when she asked me to send a check directly to her and I asked what my total amount was, she told me $125 which is the room rate. Don't all B&B's charge tax? Should I be concerned?
 

Don Draper

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Sounds like maybe she is not charging tax, but the liability is on her not on you so I don't think it's anything you need to worry about.
 

wendydk

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Did she ask you to make the check out to a business name, or to her? All B&B's should have to charge at least state use tax, unless it's a state that has none (as some states have no sales tax). Some innkeepers also charge a flat rate, and then divide out the tax.
I wouldn't think that you could get in trouble, but who knows for sure?
 

gillumhouse

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Not your problem - but I would not want to be in her shoes when the IRS knocks. However, she could be including taxes in the rate but cash or checks only sets off the smell-o-meter.
 

seashanty

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i wouldn't worry either. as far as your visit goes, i'd assume it is $125 including tax.
it is up to the inn to charge, report and pay appropriate tax. we all know that there are places that under-report, and she may be. i don't know what the law is in every state.
if you were not in this profession, you probably would not even be aware there might be an issue. if you were to take a position there, then you'd have a problem.
 

JBloggs

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When you arrive you will get the gist. Don't worry about it til then. Please feel free to come back and share what you discovered (without sharing the Inn name place).
 

Breakfast Diva

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My posted rates have the tax included and I state that next to each rate you see on my website. This is because we have to pay only 1% state lodging tax. Our county does not have a transient tax (yet). When the guest gets their confirmation letter, the room price and tax are spelled out. I found that I can actually demand more $ for my rooms this way.
My room rate would be posted as $169 tax included so the room is actually $167.33
 

bbinnsitters

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My posted rates have the tax included and I state that next to each rate you see on my website. This is because we have to pay only 1% state lodging tax. Our county does not have a transient tax (yet). When the guest gets their confirmation letter, the room price and tax are spelled out. I found that I can actually demand more $ for my rooms this way.
My room rate would be posted as $169 tax included so the room is actually $167.33.
Ok, maybe that is what she is doing! I guess I will find out when I get there. Thx!
 

EmptyNest

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My posted rates have the tax included and I state that next to each rate you see on my website. This is because we have to pay only 1% state lodging tax. Our county does not have a transient tax (yet). When the guest gets their confirmation letter, the room price and tax are spelled out. I found that I can actually demand more $ for my rooms this way.
My room rate would be posted as $169 tax included so the room is actually $167.33.
Ok, maybe that is what she is doing! I guess I will find out when I get there. Thx!
.
I wouldn't lose any sleep over it....It isn't your problem, it is the innkeepers.
 

Copperhead

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In my area B&B's with 1-2 rooms are not required to collect ANY taxes, while those with 2-5 rooms only collect county tax (and city if within city limits). State taxes do not kick in until 6 rooms. Additionally as others have pointed out, it could also be included in the quoted rate.
I am going to state this for any innspiring that could read this thread. While the tax issue is not your problem, having a business that is undercover could pose a problem to anyone that goes there as a guest as well as putting themselves at risk. If this is not a ligit. business, they most likely do not have liability insurance and if someone gets injured on their property, they could have sever problems. Most homeowner insurances have clauses that frees themselves of any claims if they determine someone was paying to stay there.
 

gillumhouse

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My posted rates have the tax included and I state that next to each rate you see on my website. This is because we have to pay only 1% state lodging tax. Our county does not have a transient tax (yet). When the guest gets their confirmation letter, the room price and tax are spelled out. I found that I can actually demand more $ for my rooms this way.
My room rate would be posted as $169 tax included so the room is actually $167.33.
Ok, maybe that is what she is doing! I guess I will find out when I get there. Thx!
.
I wouldn't lose any sleep over it....It isn't your problem, it is the innkeepers.
.
It isn't your problem, it is the innkeepers.
The tax is not BUT if it is an unlicensed inn, it is a problem for guests if something happens. The big problem for guests is they have no way of knowing in advance.
 

Country Girl

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Where I am located there is no tax on 3 rooms or less so when I send the confirmation letter I let guests know that there is no additional charge for tax.
 

EmptyNest

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My posted rates have the tax included and I state that next to each rate you see on my website. This is because we have to pay only 1% state lodging tax. Our county does not have a transient tax (yet). When the guest gets their confirmation letter, the room price and tax are spelled out. I found that I can actually demand more $ for my rooms this way.
My room rate would be posted as $169 tax included so the room is actually $167.33.
Ok, maybe that is what she is doing! I guess I will find out when I get there. Thx!
.
I wouldn't lose any sleep over it....It isn't your problem, it is the innkeepers.
.
It isn't your problem, it is the innkeepers.
The tax is not BUT if it is an unlicensed inn, it is a problem for guests if something happens. The big problem for guests is they have no way of knowing in advance.
.
And, how would anyone know if a B & B is licensed or not??? THere maybe plenty of small B & B's where no license is required and there are plenty who run without them. So what if something did happen??? Having a license doesn't insure anything.
 

gillumhouse

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My posted rates have the tax included and I state that next to each rate you see on my website. This is because we have to pay only 1% state lodging tax. Our county does not have a transient tax (yet). When the guest gets their confirmation letter, the room price and tax are spelled out. I found that I can actually demand more $ for my rooms this way.
My room rate would be posted as $169 tax included so the room is actually $167.33.
Ok, maybe that is what she is doing! I guess I will find out when I get there. Thx!
.
I wouldn't lose any sleep over it....It isn't your problem, it is the innkeepers.
.
It isn't your problem, it is the innkeepers.
The tax is not BUT if it is an unlicensed inn, it is a problem for guests if something happens. The big problem for guests is they have no way of knowing in advance.
.
And, how would anyone know if a B & B is licensed or not??? THere maybe plenty of small B & B's where no license is required and there are plenty who run without them. So what if something did happen??? Having a license doesn't insure anything.
.
So what if something did happen??? Having a license doesn't insure anything.
As I said - The big problem for guests is they have no way of knowing in advance.
 

Morticia

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Interesting because lately we have had a lot of walk-ins who think the quoted price includes the tax even tho we very clearly state otherwise when we give the price. We even discussed just posting our prices with the tax included just to avoid the problem.
 

JBloggs

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Yeah for most of us we want the price to appeal to people, not bump it up, so the price per night + tax. Tax is 10% here for lodging and sales.
 

Proud Texan

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My posted rates have the tax included and I state that next to each rate you see on my website. This is because we have to pay only 1% state lodging tax. Our county does not have a transient tax (yet). When the guest gets their confirmation letter, the room price and tax are spelled out. I found that I can actually demand more $ for my rooms this way.
My room rate would be posted as $169 tax included so the room is actually $167.33.
Ok, maybe that is what she is doing! I guess I will find out when I get there. Thx!
.
I wouldn't lose any sleep over it....It isn't your problem, it is the innkeepers.
.
It isn't your problem, it is the innkeepers.
The tax is not BUT if it is an unlicensed inn, it is a problem for guests if something happens. The big problem for guests is they have no way of knowing in advance.
.
And, how would anyone know if a B & B is licensed or not??? THere maybe plenty of small B & B's where no license is required and there are plenty who run without them. So what if something did happen??? Having a license doesn't insure anything.
.
catlady said:
And, how would anyone know if a B & B is licensed or not??? THere maybe plenty of small B & B's where no license is required and there are plenty who run without them. So what if something did happen??? Having a license doesn't insure anything.
We have no license. One is not required. NO ONE has ever asked if we were licensed, insured, honest, human. All they want to know is "how much?"
 

Proud Texan

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Wish there was no tax here on 3 rooms or less
.We pay 7% if its 1 room or more...Mary in Bridgewater, Va..
Mary at Bridgewater Inn and Cottage said:
Wish there was no tax here on 3 rooms or less
.We pay 7% if its 1 room or more...Mary in Bridgewater, Va.
We have a flat 6% Hotel Occupancy Tax for the state. However, when the counties and cities weigh in, I've seen the tax at 13% or more in the larger cities.
 

EmptyNest

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My posted rates have the tax included and I state that next to each rate you see on my website. This is because we have to pay only 1% state lodging tax. Our county does not have a transient tax (yet). When the guest gets their confirmation letter, the room price and tax are spelled out. I found that I can actually demand more $ for my rooms this way.
My room rate would be posted as $169 tax included so the room is actually $167.33.
Ok, maybe that is what she is doing! I guess I will find out when I get there. Thx!
.
I wouldn't lose any sleep over it....It isn't your problem, it is the innkeepers.
.
It isn't your problem, it is the innkeepers.
The tax is not BUT if it is an unlicensed inn, it is a problem for guests if something happens. The big problem for guests is they have no way of knowing in advance.
.
And, how would anyone know if a B & B is licensed or not??? THere maybe plenty of small B & B's where no license is required and there are plenty who run without them. So what if something did happen??? Having a license doesn't insure anything.
.
catlady said:
And, how would anyone know if a B & B is licensed or not??? THere maybe plenty of small B & B's where no license is required and there are plenty who run without them. So what if something did happen??? Having a license doesn't insure anything.
We have no license. One is not required. NO ONE has ever asked if we were licensed, insured, honest, human. All they want to know is "how much?"
.
We have no license. One is not required. NO ONE has ever asked if we were licensed, insured, honest, human. All they want to know is "how much?"
See that's exactly what I mean. Who cares? Who asks? Who knows? And, even if you do, what does that mean? Doesn't really protect you from anything other than the zoning dept, showing up at your door to make you pay for their license.
 

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