VI Hotel Tax

[michiganfamily]

I just received an email from our villa stating that as of January 16, 2016, the hotel tax in VI rose from 10% to 12.5%. We booked our villa in November of 2015 and I have completely paid our balance. They stated that they are enforcing this even on bookings secured before this date. The villa is now wanting another 2.5%. Has anyone else experienced this? Any information would be helpful.

[jimg20]

Unfortunately, most of us are experiencing the same thing. The Territory Government interpreted the act that raise the tax as applicable to every rental on or after that date. They were asked if a reservation had been made or if the reservation had been paid for prior to that date did it still apply. They responded that it did.

Some hosts/owners chose to absorb the cost and not pass it on to their guests. I don't know what your bill was, but consider this. If one was staying for a week and paying $2,000.00, the cost would be a bit over $7.00 per day. In the overall scheme of things is that a big problem? Probably not.

JIM

[michiganfamily]

Thank you Jim for your response. Unfortunately it is 50.00/day for us. I just was caught off guard as we had paid our bill and are ready to go. I am assuming they knew this was a possibility in November when we booked, perhaps they should have told us that this increase may happen. For the amount of money we have already paid, I would have liked to see the owners absorb this portion. However, it will all be good when I am on the beach with a drink in my hand!

[loria]

they had to know -- i sent out notices to all of our reservations just before hallowe'en it's too bad that they didn't let you know --it's really dishonest on their part -- I can only imagine that they didn't want to lose the rental (if you are outside of your contractual ability to cancel) --
i am sorry that they did that .

[stjohnjulie]

Not to be devil's advocate, but there Was a lot of confusion about how this new increase would affect current bookings and the communication of the new law was a bit poor. A lot of people who short term rental were confused about how the increase was going to affect bookings they already had. I would have liked to seen the government give much more notice than they did. The increase impacted soooooo many bookings that were already in place because many villas book a year in advance. The law was passed late September, signed soon after, and it affects ANY stay starting January 2016.

[inuny]

I agree that the tax increase has been a problem. But michiganfamily, you said that the additional tax (from 10% as expected to 12.5%) was costing you $50 additional per day. If so, your daily rental rate would be $2000/day.

[michiganfamily]

Yes you are correct. Close to 2000.00/day. We would not have said a word had it been figured in our original contract however to be paid in full and come back at the end of February to collect more just didn't sit well with me. It is what it is and I certainly will not let it ruin my vacation I was just curious if it had happened to anyone else. Thanks to all for your information and feedback.

[Andrea266]

Julie is right, it really wasn't made clear when the tax increase would be put into effect. Like many vacation rental owners, we already had several bookings for 2016 who were paid in full at the 10% rate when the increase was made official. We opted not to bill our guests already booked for 2016 the additional 2.5%, as it felt a little petty to us. So we're eating the cost ourselves, which is not a huge deal considering we're a budget accommodation, but it's still a little annoying that the plan to increase the hotel tax wasn't thought through a little more by the V.I. government.

[jimg20]

... but it's still a little annoying that the plan to increase the hotel tax wasn't thought through a little more by the V.I. government.

Can you name one thing that that the VI Government has done that WAS apparently thought through?

JIM

[mizarumonkey]

Giving themselves raises.

[Andrea266]

... but it's still a little annoying that the plan to increase the hotel tax wasn't thought through a little more by the V.I. government.

Can you name one thing that that the VI Government has done that WAS apparently thought through?

JIM

Ha! Yes that went through my mind when I was replying but I figured I'd leave my opinions of local politics out of it

[Coconuts]

In addition to raises, pension plans seem to have been given lots of careful attention. The financing of said pension plans (see GERS), not so much...

http://viconsortium.com/business/mapp-g ... -retirees/

All the best,

Kevin

[adsjayhawk]

We are not charging our guests that booked before the tax increase, because we do not feel it is fare. Does it cut into our operating expenses-yes. We are nowhere near $2K a night . I would ask that they absorb the increase, especially since you booked in November. If it is a management company you are dealing with, I would request that they or you check with the owner of the villa.

[michiganfamily]

Thank you for your feedback. I am happy to report that after speaking again with the owners of the Villa, they have decided to cover the tax increase. They understood why we were disappointed and made it right. Our trip is less then a month away and we are super excited. Thanks again!!

[northerngal]

Michiganfamily, where are you staying? We are also a "Michigan family" planning a trip for next March!