state and hospitality taxes

[Dee C.]

We have to add 13% taxex on top of ofur room rate. Psycologically, would it be better to include the hospitality tax in the posted rate , then just add the 7% state tax afterwards?

 

[EmptyNest]

Personally, I don't think so. Then it makes your rate appear higher. I would just post my room rate and say + taxes. Afterall, the taxes aren't your fault and you have no control over them. :-(
Is hospitality tax same as lodging tax???

 

[Morticia]

Maybe psychologically, but you are going to get that guest who does the calculations and wonders why the 7% tax isn't taken on the whole amount of the stated room rate. And if you tax the stated rate, you're taxing on taxes.
So break the tax rate up: 6% hospitality tax (BAD name for a tax, BTW) + 7% state tax.
That lloks less imposing than just saying 13% tax.

 

[Dee C.]

Good point. It looks less imposing.

 

[Dee C.]

Personally, I don't think so. Then it makes your rate appear higher. I would just post my room rate and say + taxes. Afterall, the taxes aren't your fault and you have no control over them. :-(
Is hospitality tax same as lodging tax???.

Yes it's just another name for it. I think I will leave the rates the same and clarify what the taxes are. Taxws are one thing we can't control.

 

[gillumhouse]

Just list your rate and then list the taxes. I think I would call it Lodging tax and State tax since that is what it is. People do understand those taxes - they are found just about everywhere. Compared to some places you 13% is a piker. Many have 18 to 20% in taxes now. The hotel tax in Illinois in 1990 was 11% and I am certain it has gone up since then. I think it was still 11% when I quit in 1994.

 

[JBloggs]

NO NO NO!
Just post the rate and say Plus Sales and Lodging Tax
you are not advertising your taxes! you are advertising your room rates! the tax is the gvmt part, not your part...
Do you have online reservations? If so anyone can click and see the total room rate for their stay.
If it is a 3 or 4 night stay the rate will appear much higher. Tax is tax, they pay if on everything wherever they go! You never see a billboard for anything with the tax INCLUDED, that is not advertising, it will say plus tax.

 

[Iris]

Maybe psychologically, but you are going to get that guest who does the calculations and wonders why the 7% tax isn't taken on the whole amount of the stated room rate. And if you tax the stated rate, you're taxing on taxes.
So break the tax rate up: 6% hospitality tax (BAD name for a tax, BTW) + 7% state tax.
That lloks less imposing than just saying 13% tax..

Yup, I agree. Here in our little county of the world we have a 2% Convention and Visitors Bureau Assessment on top of 6% sales tax. And that is how we put it in the info online and our brochure. Break it up. they won't complain, it isn't your fault.
Sometimes I would like to add my very own "extra cleaning" assessment to the bill