MACo: Apply State and Local Hotel Taxes Fairly

Today, February 11, MACo testified to seek amendments to SB190, which would impose the State Sales and Use Tax on the full price paid to an online travel website for the cost of a hotel room – under current law some online retailers are collecting only on a lesser “wholesale” price they provide to the hotel directly. MACo sought amendments to extend the same principle to any local hotel tax. Several conventional hotel chains also supported the bill, citing inequities in tax treatment across purchase venues.

The written testimony explains:

Hotel taxes are a vital revenue source for counties. While some counties may use this source as a General Fund revenue, most use these funds to promote tourism to improve the local economy. A few counties may use these revenues to pay debt service for convention centers or sports facilities.

For more on MACo’s 2015 legislation, visit the Legislative Database.

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