Tax on resort fee?!

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Mar 22, 2017
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#1
Hello. I work as an admin and I am reconciling a trip for a traveler. So we prepaid the room which included the room occupancy tax, (state) tourism assessment tax/fee, (city) tourism marketing district tax/fee. Then on a separate folio they charged a resort fee AND those same taxes (different amounts) and claim that they charge those same taxes on the resort fee. They claim because we did not agree to pay the resort fee in our prepayment they are charging it after the fact. We have a corporate account with several local hotels, including Hilton. Something seems fishy here. Basically they are claiming the resort fee + taxes/fees on the resort fee as an incidental. In addition to the 30 dollars a day for parking. Anybody encounter such a thing? I am waiting on my contact in accounts to get back to me but I thought I'd see what all of you had to say. Thanks!
 
Jan 11, 2017
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#2
Yes, I do encounter this frequently: Vegas hotels consider resort fee + taxes on resort fee as incidental. (At least they always warn about it during reservation.) In Vegas parking is not part of the resort fee or the basic room price.
I am sure our experts will give you detailed explanation, but there is nothing new in this.
 

Carrie Livingston

Moderator
Staff Member
Advocate
Jan 6, 2015
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St Louis
#4
In certain states, sales tax is charged on any fees that are required to be paid. If you have to pay the fee to get the item (i.e. resort fee for hotel room) that the fee charged is a part of gross receipts and therefore subject to sales tax.
 

jsn55

Verified Member
Dec 26, 2014
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#5
It's disgusting but true. I've been screaming for several years about resort fees. To me it's simple, a mandatory fee should be included in the room rate. Taxing the resort fee separately kinda proves that the fee IS part of the room rate. I stay at a great many Hiltons at all price levels, and only once did I pay the resort fee ... we were at a resort and the front desk told me about it when we checked in. If I'm not told at checkin, I don't pay it. I've dissected the benefits of these fees and I receive all the benefits because of my Diamond status. That usually ends the debate. Of course, you have to have a little time and the skin of a rhino to have these discussions at checkout, but calm and polite has always prevailed for me.
 

kenish

Verified Member
Sep 1, 2015
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#6
@Amonkey - You can call the Tax Board for the city, county (Clark Co.), and state of NV...or look at their websites. They can answer your questions about tax on fees.

FYI our group of 20 ran into a tax issue at a restaurant. They charged a 20% service fee (no problem) but added tax. Long story short, in CA a tip is not taxable but a service fee, corkage fee, etc. is taxable.
 
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Carrie Livingston

Moderator
Staff Member
Advocate
Jan 6, 2015
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St Louis
#9
Due to reporting requirements with the IRS, many restaurants have changed some of their practices. I don't know many details about it but since I deal with state tax.
 
Aug 28, 2015
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New York
#10
Don't waste your time calling anyone. Of course resort fees are taxed, as are parking fees and every other thing one pays for. There is more than one tax on a resort fee.

The folio will look like this:
Resort fee:
Resort fee occupancy tax:
Resort fee civic fee: