States Where OTAs Collect Revenue Tax on Behalf of Hotels (PMS)
In certain States, online travel agencies (OTAs) like Expedia are required to collect and remit taxes directly to the State for reservations paid through their platforms. In these cases, hotels typically invoice the OTA for the total amount paid by the guest, minus the OTA’s commission. However, when this tax arrangement is in place, hotels should not apply taxes to the OTA invoice, as the OTA is responsible for remitting the applicable taxes.
If your hotel is located in one of these States and is using the VM Cloud PMS, you can update the tax-exempt setting directly in the system. For hotels using the VM Desktop PMS, you’ll need to gather the list of impacted rate codes and the tax(es) to be exempted, then contact the Visual Matrix Client Experience team to update the rate plan mapping in the channel manager interface.
As of 08/07/25, per our knowledge, the following States are concerned*:
| - Arizona | - Indiana | - Massachusetts | - Oregon | - Washington |
| - Colorado | - Kentucky | - New Jersey | - Pennsylvania | - Wisconsin |
| - Connecticut | - Louisi | - New York City | - South Carolina | |
| - D.C. | - Maine | - New York State | - Utah | |
| - Idaho | - Maryland | - North Dakota | - Virginia |
*Consult your state and local tax code regulations for confirmation or additional information.
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