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Re: New 12.5% Hotel Tax on Existing Reservations

Posted: Thu Oct 29, 2015 8:03 pm
by loria
so-- lets get this straight-- if gas tax goes up -- you pay it-- property tax goes up -- you pay that too-- sales tax on clothing-- yep-- you pay that too-
i get being upset about it -- but it is something that is out of the control of the small operator (or large operator) FWIW -- i won't be passing it on -- but unfortunately this WILL impact other plans i had for giving until next year-- which makes me very sad. we are a newer rental -- and so just getting our finances in line....

Re: New 12.5% Hotel Tax on Existing Reservations

Posted: Fri Oct 30, 2015 5:07 am
by stjohnjulie
It is my understanding that the 12.5% is applied to the whole cost,including any fees, as in the gross cost of the rental. Our Gross Receipts tax that businesses pay of 5% also works in this way.

Re: New 12.5% Hotel Tax on Existing Reservations

Posted: Fri Oct 30, 2015 7:23 am
by Travelling Wilbury
OK, I think this has gone way off base. In my original question I was just inquiring to see if folks that already had existing villa reservations were being assessed the "new" additional 2.5% tax increase. Previous discussions in this forum suggested that existing reservations may be "grandfathered" in and not charged the additional tax. Nothing more, nothing less.
Let's all chill out!!!
:D

Re: New 12.5% Hotel Tax on Existing Reservations

Posted: Fri Oct 30, 2015 3:06 pm
by Joppa
One time inquiring about a villa I said I know the tax is 10% what other fees will there be. The agent quickly corrected me and said actually the tax is 15%. I can understand paying a fee and a tax but appreciate honesty and wouldn't rent from them.

Re: New 12.5% Hotel Tax on Existing Reservations

Posted: Fri Oct 30, 2015 7:38 pm
by Tracy in WI
Kirk,

I have been following the news regarding this pending tax increase for several months and inquired many times with various sources as to the date it would take effect. There was no mention of an effective date of the increase despite the news of this passing in the local online papers. I am thankful to Julie for posting the response she received here on this forum.

Re: New 12.5% Hotel Tax on Existing Reservations

Posted: Sat Oct 31, 2015 12:22 pm
by loria
totally agree with what Tracy said-- thank you julie for sending on the information-- much appreciated (and was VERY frustrating trying to figure it out -- and then if i am correct to learn that this increase is largely to support HORSE RACING in St Croix????)

still I have two conflicting documents one saying the 1st of January and the other the 16th! --

Re: New 12.5% Hotel Tax on Existing Reservations

Posted: Sun Nov 01, 2015 5:49 am
by stjohnjulie
No problem at all! Glad I could help out. I know it is so frustrating to get so much conflicting information. Unfortunately, that is not too uncommon here. I reached out to Beverly because she has always been so responsive and helpful. And figured since the hotel tax is something that she is intimately familiar with as Commissioner of Tourism, she would have the info handy. Glad I got it! But I was unable to find any kind of press release online myself. So I'm not surprised that there is so much confusion about it.