USVI-On-Line

Someone told me that if you rent a villa from the owner instead of a rental company, that it's up to the owner's discretion whether they collect the 8% VI Hotel Tax or not. Is this true? In the past, we have rented from both owners and companies and always had this tax.

Anyone else heard of this?

I don't know that it is 'up to the owners discretion' to collect the VI Hotel tax - but it is not discretionary that they owe it - perhaps there is an under the table,off the books rental income going on as an underground economy.

I can't remember the exact number, but a business (or villa owner) must pay the Hotel Tax if the total revenues exceed a certain dollar amount. I believe this amount is $15,000 per year.

So, as the other's have said, Yes, the villa owners must pay it.

We've rented directly with an owner a few times.

One of the times we negotiated on a price and in the end it was x dollars including tax and it was a nice round number so I'm not sure if we were paying tax or not. It's the owner's responsibility to pay the tax so you can't really ever know if they're actually paying it.

This summer we rented a place through the owner and she didn't charge us tax because we weren't going through one of the agencies where her property was listed.

We're going in a couple weeks and we negotiated with the owner and were told that we would be paying the tax, no ifs, ands, or buts about it.

NOT TRUE

The VI Gov't is very serious about their tax!!

It does not matter if you book direct or through a marketing company. ( which will collect their 25% commission and the 8% tax ) The tax is due and should be paid.

I bet you a week at the villa that if they are not collecting the tax, they are NOT paying it. This hotel tax helps the VI and our main source of jobs; it puts people in our shops, restaurants, villas and hotels.

If they are above board they are collecting and paying the VI Tax

Ted
Into The Mystic

The 8% room tax is NOT legally optional--whether you go directly thru an owner or through a booking agent or through your 'aunt jane' (if they're collecting rent, they should be paying the room tax). And I don't believe there's any kind of rental threshold that has to be passed before it's due.

My sentiment is that if someone tells me they don't have to collect it, then I wonder what else they're not being truthful about with me (like the real condition of their villa vs the pictures or some such).

After working with, and managing, people most of my life, I've found they're pretty consistent, ie if they lie about one thing, they'll lie about a lot of things; if they're honest about one thing, they're basically honest about everything.