Are Hotels Allowed To Charge Higher Tax Rates?
Im booking a hotel at the Ritz Carlton, and they are charging me 10.25% taxes, instead of the 5% state tax rate. Is this legal to do?
Im booking a hotel at the Ritz Carlton, and they are charging me 10.25% taxes, instead of the 5% state tax rate. Is this legal to do?
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Sure, hotels have additional taxes added on sometimes in addition to sales tax. What state are you talking about by the way?
They aren’t allowed to charge higher taxes – they are REQUIRED to do so. Most states/municipalities have higher tax rates on hotels and rental cars. The reason for this? Tourists don’t vote. . . . .
You don’t say what city it’s in, but many cities or counties do levy an additional sales tax on hotel rooms.
Hotels and rental cars are sources of additional tax revenue to support special projects. Usually, their tax rates are higher than the regular sales tax.
You can also be charged flat occupancy fees as well.
This is called transient lodging tax and has nothing to do with the state sales tax. Cities set their own rates. In San Francisco it is 14%.
is it in a different state?