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Why do the hotels tax the Resort Fees?

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San Diego...
posts: 141
reviews: 37
Why do the hotels tax the Resort Fees?

This will be my last post on this issue but this fee really bothers me. Please forgive me.

Will someone please explain why the "resort fee" has a tax. The hotels already tax the room rate.

Just looking for answers. Thanks!

Brighton
posts: 4,031
reviews: 30
1. Re: Why do the hotels tax the Resort Fees?

I don't think it's the hotels' choice but the tax department's. The resort fee is a separate service so is taxed accordingly.

I just don't like resort fees!

Atlanta, Georgia
posts: 1,438
reviews: 6
2. Re: Why do the hotels tax the Resort Fees?

The hotel doesn't tax the resort fee. The state of NV imposes the tax (and county, or other local govt.).

The hotel may call the room rate whatever it wants, or itemize it into a bunch of different "fees" but the state doesn't care. The total amount paid for the room is taxed.

Saint Joseph...
posts: 2,112
3. Re: Why do the hotels tax the Resort Fees?

I'm not an Tax Accountant.... but here's my guess. Instead of viewing it as a tax, I'm guessing they view it as a "service". So just like you are taxed for Valet Parking , you will be taxed for the Resort Fee. They wouldn't tax it... if they didn't HAVE to.

Park Forest...
posts: 11,391
reviews: 76
4. Re: Why do the hotels tax the Resort Fees?

It is a bit jarring to see a tax on what I would perceive as a service charge when you come from a state that doesn't tax services. But apparently either Nevada sees it as a hotel charge or they tax services.

California
Destination Expert
for Las Vegas
posts: 33,202
reviews: 4
5. Re: Why do the hotels tax the Resort Fees?

If they didn't tax resort fees, what would stop a hotel from charging $25 as a room rate and $75 in fees just to avoid taxes?

Newton, New Jersey
posts: 947
reviews: 115
6. Re: Why do the hotels tax the Resort Fees?

Sales tax is how a state earns income. Not to mention there's no state income tax in the state so they nail people in other areas.

NOVI
posts: 838
reviews: 3
7. Re: Why do the hotels tax the Resort Fees?

They don't tax it, the state of Nevada does. The state likes money, especially from non-residents

Jersey
posts: 31,592
8. Re: Why do the hotels tax the Resort Fees?

just like you are taxed for Valet Parking

Actually- parking (both valet and self-park) is free in Vegas. Tip-yes/tax no.

ontario
posts: 1,172
reviews: 11
9. Re: Why do the hotels tax the Resort Fees?

I'm not from Nevada, or even the US for that matter. However I wouldn't think your government is much different from ours (not looking for a debate) and if it is the case, the government decides what items are taxable.

Government's tend to frown on companies/businesses that do not apply taxes to applicable items.

The hotel does not gain anything by taxing services/items, as all taxes are remitted to the governemnt. There is no financial gain for the companies to randomly apply taxes to their services/product.

Like I said assuing your tax rules/laws reflect similar to those of your boardering neighbour. :)

Seattle
posts: 582
reviews: 48
10. Re: Why do the hotels tax the Resort Fees?

I agree with a previous poster. If the state didn't tax the resort fee every place on the strip would be selling rooms for $1/night and having $100/night resort fees.