Lodging

How does the state sales tax rate increase to 6% on July 1, 2008, affect hotels, motels, and similar businesses?

  • The state rate for hotel and motel lodging remains at 5%.
  • The hotel/motel tax, if any, still applies.
  • The local option tax (LOST) does not apply, whether or not the rental is subject to hotel/motel tax.
  • All hotels, motels, and similar establishments will complete an additional schedule when filing their returns.
  • The first return affected was the July - September 2008 quarterly return, which was due the end of October.