Are State Digital Services Taxes Off the Table? Don’t Count On It
The rumors of DST’s death are greatly exaggerated, and tax leaders should keep a close eye on developments.
Read Time 2 Mins
Whether you’re a bed and breakfast, an online travel agency (OTA) or a hotel chain, accurate tax calculation is critical. While these calculations have always been complex, the ramifications of non-compliance have never been higher.
Companies in the hospitality industry -- especially hotels and other lodging businesses – face intense challenges in light of a spike in litigation over lodging and occupancy taxes. Headlines from business pages and digital publications throughout the country demonstrate this surge:
Currently, more than a dozen separate legal battles over unpaid transient occupancy taxes are playing out among numerous state and local jurisdictions and travel companies. This litigation already is especially painful for OTAs, some of which are keeping more than $100 million in reserve to be prepared to address negative litigation outcomes.
Although there is no silver-bullet solution that guarantees tax compliance, lodging companies can limit their legal risk by:
These steps also can lower the likelihood that your lodging company winds up in the headlines for the wrong reasons.
*For more information about how Vertex is helping the hospitality industry with these types of tax issues, please click here.
Please remember that the Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information.
Discover how our technology solutions and software can help you streamline tax, stay compliant, and grow your business.
Browse All Solutions