Filing Instructions: Lodging for Business Filers
Note: If you are a Bulk Filer, use these instructions.
In the past, businesses had to have a sales tax permit for each lodging location. Starting April 1, 2019 businesses may have one sales tax permit for multiple lodging locations if they only have room rentals subject to lodging tax and no sales subject to sales tax.
Any lodging location that has sales subject to sales tax (ex: gift shop, room service, etc.) will still need a sales tax permit for that location. These instructions are ideal for businesses that only have online retail sales of lodging or have multiple lodging locations with no sales subject to sales tax (ex: a bed & breakfast with multiple locations and no gift shops). However, businesses with only one lodging location, these instructions will still apply, users will only select one lodging jurisdiction.
- Login to eFile & Pay using your Business eFile Number (BEN). If you are a service provider, enter your BEN, not the BEN of your client. After confirming your BEN, enter your User ID and Password.
- After logging in, choose Sales under the tax type you are filing. You will notice the procedure is mostly the same with the exception of a Lodging tax schedule replacing the Schedule A for Hotel/Motel.
- Select your Permit Number, click Continue and then select the Period for which you are filing and click Continue.
- Answer the questions shown on the screen. For this example, sleeping accommodations provided are subject to lodging (hotel/motel) tax. Answer Yes to this question and No to all others and then click Continue. Note: if you answer these questions incorrectly, you can use the Back button in the application to edit your answers. Do not use the browser navigation. Once you answer Yes to this question, it should be selected automatically the next time you file.
- After selecting Yes to the lodging question, you will see a new screen to enter your lodging jurisdiction(s). Type the city, town, or county of the lodging location in the Jurisdiction field and click Search. The associated jurisdiction will show under the Search Results. Click Add to add this jurisdiction to the return. Repeat this step to add any additional jurisdictions. If a jurisdiction is added by mistake, use the Remove button to remove it from the list.
The jurisdictions selected during this step will be saved and will automatically populate the next time you file a return. Click Continue once all jurisdictions have been entered.
- The Lodging Sale Entry screen is new for the eFile & Pay system. Enter the Gross Receipts and Less Exemptions for each jurisdiction and then click Calculate. Note: Only contracted stays of 31 or more consecutive days or stays paid by direct federal funds are exempt from lodging taxes.
The 5% state tax and applicable local option sales tax will calculate and display a Total Lodging Tax in the lower right hand corner. Click Continue.
- You will be redirected to the Sales Tax Return and your Total Lodging Tax amount will be automatically populated in line 6e. Enter any applicable Gross Sales in line 1, and then click Calculate. Click Continue when you've completed the form.
- If you see a blue message indicating your business is located in a county that has local option sales tax, this is OK. We are simply using the sales tax return to report and pay lodging tax as there is no separate lodging tax return. Click Continue in the bottom right corner to proceed.
- Verify your Sales Tax Return on the next screen. Use the Edit button to make any changes or the Submit button to confirm your return.
- After submitting the return, you will be provided with payment options. Follow the directions on the screen to complete your payment.
- When your payment is complete, you will receive a confirmation number for filing your return and can print a copy for your records.