Wyoming: Sales Tax for the Hospitality Industry
- Oct 7, 2014 | Gail Cole
It can be tricky for businesses in the hospitality industry to know where they stand with respect to Wyoming Department of Revenue has updated its Sales, Use and Lodging Tax Guidelines for the Hospitality Industry.
Lodging services provided to transient guests (those staying for fewer than 30 continuous days) are subject to Wyoming sales tax and any applicable locally enacted lodging tax.
Guests who stay for 30 days or longer are not considered transient guests and lodging services for these guest are not subject to Wyoming sales tax or local lodging tax.
- In the event any of these taxes were collected prior to the transient guest transitioning into not-a-transient (untransient?) guest, they must be credited to the guest.
- In the event a guest initially contracts to stay for 30 days or more and then leaves early or breaks up the stay, sales and applicable lodging taxes apply.
Businesses may enter into agreements with lodging establishments and reserve rooms “with the intention of rotating employees in and out of the room during the agreement period.” In this event, the business is the customer and so long as the business rents the room for 30 or more days, charges for the room are tax-exempt.
Sales tax may or may not apply to separately stated additional charges, such as charges for roll-away beds (tax applies) or charges for pay-per-view movies (exempt). Lodging taxes would not apply to such separately stated charges. However, when additional charges are not delineated on an invoice, those charges are “subject to Wyoming sales and lodging taxes as part of the lodging service provided.” The same applies to promotional offerings, such as ski packages.
Online travel companies
Last spring, the Wyoming Supreme Court found that online travel companies must remit taxes based not on the price that they reserve rooms for, but instead on the price that they resell those rooms to consumers.” The OTCs had hoped to “continue the practice of collecting and remitting taxes to the state based on the lower rates that they negotiate with the hotels instead of the higher prices offered to consumers.” In addition, the Court held that “the on-line companies were in fact vendors of lodging services when renting those rooms to consumers” and that online companies have “nexus with the state of Wyoming, despite having no physical presence in the state.”
How does your business handle transaction taxes in Wyoming and other states? Try using automated sales tax software as a service. Learn more.
Read the Wyoming sales, use and lodging tax guidelines in full here.