States that collects Revenue Tax on Behalf of Hotels

States that collects Revenue Tax on Behalf of Hotels

In some States, online travel agencies (OTAs) like Expedia are required to collect and remit taxes directly to the State on behalf of hotels for reservations paid through the OTAs. Typically, hotels charge OTAs the amount paid by guests online minus the OTA's commission. However, in these specific States, hotels should not charge tax to the OTAs, as the responsibility for remitting taxes lies with the OTAs.

If the hotel is located in one of these States and uses VM Cloud PMS, you can update this tax-exempt setting yourself. However, if they are using VM Desktop PMS or are not a Best Western Hotel, you will need to get the list of rate codes affected and the tax(es) that should be exempted and ask Visual Matrix Client Experience team to update the rate plan mapping in the channel manager's interface.

As of 01/02/24, per our knowledge, the following States are concerned*:

- Arizona
New Jersey
- Wisconsin
New York City
South Carolina

New York State

North Dakota
- Virginia
Massachusetts- Oregon- Washington

*Consult your state and local tax code regulations for confirmation or additional information.
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