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Because renting out a hotel room is not a sale. Ergo, a sales tax does not apply. An occupancy tax is the tax levied on short-term leases (i.e.,, hotels).
by rprasad 14y ago
Because renting out a hotel room is not a sale. Ergo, a sales tax does not apply. An occupancy tax is the tax levied on short-term leases (i.e.,, hotels).
- ajays 14y agoIt's mainly because (a) sales taxes are much less than these occupancy taxes, and (b) socking it to the visitor has no political repercussions; they're not going to vote in the elections anyways.
- Zak 14y agoThere's sales tax on renting a car most places - why not a room? Why should there be a different tax at a different rate for renting a room?