Palm Beach County raises Tourist Development Tax

Check out this article by the Sun-Sentinel HERE

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The Tourist Development Tax, “Bed Tax” or “Hotel Tax”, rate has increased from 5% to now 6% on Transient Accommodations.  (Transient accommodations are living quarters or other accommodations in any hotel; apartment hotel; motel; resort motel; apartment motel; rooming house; mobile home park; recreational vehicle park; including site, rental house, or condominium, that is rented for a period of six months or less.)

The “bed tax” is due on the total rental charge, which includes any amounts required to be paid as a condition of the use or occupancy of the accommodation.

Other charges that are considered to be part of the right to occupy a transient living accommodation include:

• Deposits if used to offset rental charges
• Mandatory resort fees
• Mandatory cleaning fees
• “No show” charges for guaranteed rooms
• Fees for roll-a-way beds or cribs
• Charges for microwaves or refrigerators
• Non-refundable pet fees
• Fees for extra persons
• Charges for day use
• Non-refundable smoking fees
• Extra charges for environmentally clean rooms
• Charges for early check-in or late check-out

Please note that rooms provided at no charge or “comped” are not taxable.  The barter of living accommodations for any other taxable or non-taxable sale or service IS subject to TDT.  Discounts or room adjustments may be deducted. However, you may not offset credit card fees or any other costs from the total room charge.

Some common charges that are not subject to the Tourist Development Tax include:

• Charges for telecommunication services, including facsimile services.
• Charges for television system program services, including charges for movies, electronic games, videotapes and DVDs.
• Food, drinks, and other items, such as combs, shampoo, playing cards, aspirin, or similar items purchased through a refrigerator or other device located within a guest’s accommodation.
• Charges for the use of safes or safety deposit boxes located at an establishment’s registration desk. (In-room safes are subject to the Tourist Development Tax).
• Charges, fines, or damage fees for lost or damaged items, such as room keys, towels, linens, dishes, silverware, or other similar items.
• Charges for admissions, such as golf, tennis, cultural or events, billed separately to a guests accommodation bill.
• Charges for transportation services.
• Laundry services charged to a guest or tenant’s accommodation bill.
• Valet service charged to a guest or tenant’s accommodation bill.
• Merchandise packaging or delivery service charged to a guest’s accommodation bill, such as flower delivery services or charges for packaging and delivering items for shipment under the direction of the guest.

For More Information Visit www.pbctax.com/tourist-development-tax