1 / 22

City and County of Denver

City and County of Denver. Introduction To Hospitality Taxes.

brie
Download Presentation

City and County of Denver

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. City and County of Denver Introduction To Hospitality Taxes

  2. The tax rates used during this presentation were valid and correct at time of recording. Rates may have changed since the recording, please visit www.denvergov.org/treasury for Denver’s tax rates and www.colorado.gov/revenue/taxfor current state wide tax rates.

  3. HOSPITALITY TAXES AGENDA • Lodger’s Tax • Taxable at 10.75% • Exemptions • Sales • Taxable at 3.62% & 4% • Non-taxable • Purchases • Taxable at 3.62% & 4% • Non-taxable

  4. LODGER’S TAX Tax is due on the amount charged for a room to a person who is not a permanent resident. Sleeping Accommodation in a Hotel, Motel, Lodging House, Guest House, Bed & Breakfast, Time Share etc… May include cancellation charges if guest retains right to use the room (Tax Guide 52)

  5. LODGER’S TAX • Colorado Convention Center 4.75% • CCC (Bond payments) 3.25% • General Fund 1.75% • Denver Metro Convention & Visitors Bureau, Convention Marketing and Tourism Promotion Project 1.00% Total Denver Lodger’s Tax Rate 10.75%

  6. LODGER’S TAX • Separate Lodger’s Tax Return • Due by 20th of the month following the month of the transaction

  7. LODGER’S TAX Pet fees • Mandatory fees to have a pet in the room - subject to Lodger’s Tax • Damage deposit for a pet – not taxable even if retained

  8. LODGER’S TAX Exemptions: • 30 days or more – actual occupancy or written agreement to pay for and occupy • Charitable, religious and government organizations Tax Guides 10 & 87

  9. LODGER’S TAX Exemptions: (Charitable, religious and gov’t) AND Must meet ALL 3 of the following requirements – • Part of regular charitable or religious activities or gov’t • Payment made directly with funds of exempt entity • No reimbursement of any kind to exempt entity (3-question form)

  10. LODGER’S TAX Exemptions: (Charitable, religious and gov’t) • Charitable organizations must have a • Letter of Exemption from Denver • Religious organizations must • Be incorporated and registered with the Sec. of State • Hold regular worship services to which the public are invited • Be recognized by CO Property Tax Administrator as a religious organization

  11. LODGER’S TAX Exemptions: (Charitable, religious and gov’t) Documentation to be retained on file by hotel – • Completed 3-question Exemption Form • The State of Colorado Exemption Certificate • Proof of payment with exempt funds • Denver Exemption Letter • (For Charitable Corporations only)

  12. LODGER’S TAX Exemptions: (Charitable, religious and gov’t) Proof of payment documentation: • Check - photocopy • Cash – PO and completed Form for Cash • Purchases • Wire Transfer document • Credit card - affidavit

  13. LODGER’S TAX

  14. LODGER’S TAX Exemptions: If adequate documentation is not provided, the hotel is to charge the tax and advise the guest that they may file a Claim for Refund with Denver , providing the guest files the claim with Denver within 60 days of the transaction.

  15. LODGER’S TAX Exemptions: Miscellaneous Burden of proof is on the hotel Call the City to confirm exemptions Taxpayer service – 720-913-9400 Audit Unit – 720-913-9330

  16. TAXABLE SALES General Merchandise 3.62% Examples of taxable sales: • Rental of: • Roll-away beds • AV Equipment • Conference phones • Videos • Pay-Per-View • Video games & equip. • Internet access kits • Gift shop sales (including chewing gum) • Copies • Incoming faxes • Laundry detergent • Ice not for human • consumption • (coolers, for sculpting)

  17. TAXABLE SALES Food & Beverages 4.0% Examples of taxable sales: • Restaurant or room service • In-room stock • Mandatory service charges • Gift shop candy etc. (plain water for human consumption is exempt) • Charges by caterers for food, service and • delivery • Vending machines and drinks by the glass • (tax is included) • (Tax Guides 32 & 55)

  18. NON-TAXABLE SALES Examples of non-taxable sales: • Meeting room rental • Laundry/valet services • Parking charges • Outgoing faxes • Postage stamps • Internet access fees • Original ice sculptures • (Work of Art exemption - Tax Guide 53)

  19. FUNDRAISING Sales to organizations for use in fundraising are taxable (Tax Guide 36) Annual Membership “Fees” paid to charitable and religious organizations are usually voluntary and if so, do not invalidate an exemption.

  20. PURCHASES Purchases made by the hotel, or restaurant may be subject to sales/use tax. If the purchase is taxable, sales tax may be paid at the time of purchase. If not, use tax should be remitted. Please refer to our use tax video for more information.

  21. THIS CONCLUDES OUR PRESENTATION ON HOSPITALITY CONTINUE YOUR DENVERTAX EDUCATION BY VIEWING OUR OTHER TAX VIDEOS www.denvergov.org

More Related