New York Sales Tax for Hotel and Motel Operators
- Feb 16, 2015 | Gail Cole
New York Department of Taxation and Finance has recently updated its Guide to Sales Tax for Hotel and Motel Operators.
Subject to sales tax
Sales tax applies to the following:
- The rent for every occupancy of a room or rooms in a hotel in New York State
- Charges for additional services, facilities, amenities, and items that are incidental to the occupancy of the room or rooms, whether combined or separately stated
Not subject to sales tax
- Charges for a permanent resident of a hotel
- Charges when the rent is not more than $2 per day
- The rent of a room meeting the definition of “place of assembly”
- Rent for “any occupancy that is excluded or exempted from tax under the Tax Law or any provision of law”
- “Reasonable and separately stated charges for any service or other charge or amount not required to be paid as a condition for occupancy” of a room or rooms. For example, separately stated charges for food and drink, entertainment, and various other services.
New York City unit fee
In addition to the state sales tax, a hotel unit fee of $1.50 per unit per day is imposed on hotel occupancy in New York City, which encompasses the following counties: Bronx, Kings, New York, Queens, and Richmond. The same exclusions from sales tax apply to the New York City fee.
Local occupancy taxes
Locally imposed occupancy taxes are not within the purview of the New York Department of Taxation and Revenue. As a result, they are only minimally referenced in the guide. Local occupancy taxes should not be included when calculating New York State sales tax. Questions about these taxes should be addressed to the local taxing jurisdiction.
The guide is quite extensive, spanning 47 pages and covering everything from how to address a sales tax rate change to how to address frequent stay / points reward programs. Please refer to the Guide to Sales Tax for Hotel and Motel Operators for additional information.
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