A well known hotel chain (name not mentioned)–somewhere in S. Texas has a room rate of $49.99. The sales tax rate is 8.25% percent. When it comes to hotels/motels there is to be no county or city tax figured into the state sales tax rate. Why are hotels gouging the travelers? If you go to any hotel/motel in TX and ask they’ll respond with either “because we can” or “that’s the way it is”. First off, if the American Motel/Hotel Association gets wind of any shady business practice, they won’t endorse the hotels doing it. Secondly, these “taxes” are NOT being reported to the state. All taxes assessed HAVE to be listed on the receipt. If it only reads “state sales tax” and that $49.99 hotel room costs you more than 54.11, then you need to see a breakdown of taxes assessed. Someone I know got charged $16.00 more and was told it was “state sales tax” which is an outright lie.
As you can see on this chart, the total charges assessed for the price of the room SHOULD HAVE BEEN the $54.11 since the total sales tax on that room is $4.12. Guests are not responsible to pay the owners state income taxes–the school taxes, etc…That comes out of the owners GROSS INCOME. Anyway, here is a state sales tax chart to back up what I’m PO’d about.
The problem arises in that most guests NEVER question why a fee is so high beyond the room price–even if it’s over $20. Again, GUESTS are not responsible for the owners taxes and such–and any fees assessed outside of the sales tax should be on the receipt. If it’s not, something is amiss… If they are being charged above the 8.25% sales tax, chances are the owners are collecting more income than they are reporting and people need to start turning them in. If enough people do it, the Attorney General might step in and set them straight about their accounting practices, if the Federal Government doesn’t get them for failure to report their “income”. Enough audits and these owners will stop pulling this shady crap on the travelers too.
There…I’m through griping for the moment! I think people are getting ripped off enough without these Hotels and Motels pulling this crap.