Georgia Department of Revenue Guidance on Taxability of Accommodation Charges

The Georgia Department of Revenue issued a policy bulletin clarifying the correct application of sales and use tax to charges for any room, lodging or accommodation in the state.  The bulletin specifically addresses how to appropriately apply tax to charges for rooms, lodging, or accommodations furnished to transients by hotels, inns, tourist camps, tourist cabins, or any other place in which rooms, lodging, or accommodations are regularly furnished to transients for consideration.

Included in the Department’s definition of a retailer and dealer is any person, including owners of private residences, cabins, or cottages who make a sale or charges for any room, lodging, or accommodation.  Rental agents who rent such accommodations to transients on behalf of owners are also considered dealers subject to sales tax.

Georgia sales tax is levied on the sale or charges for any room, lodging, or accommodation in the state furnished to transients by any hotel, inn, tourist cabin, or any other place, including private residences, in which rooms, lodgings, or accommodations are regularly provided to transients for consideration.  However, the tax does not apply to accommodations provided to any one person for a period of 90 or more consecutive days.

The Department specifies that the sales price subject to sales tax is inclusive of various charges despite their description.  The enumerated charges included in the sales price are identified in the bulletin.  Notably, the Department disclaims that the list is not exhaustive.  However, some of the charges listed include: credit card fees, damage fees, early/late departure fee, extra person charge, linen fee, pet-fee, “peace of mind” fee, smoking fee, resort fee, security deposit, and inspection fee.  These charges will be subject to tax, regardless of whether they are separately stated from the accommodation charge.

Furthermore, the Department highlighted that providers of accommodations are liable for tax on all purchases of tangible personal property that are attributed to making their rooms livable and rentable.  These providers are viewed as end users and consumers.

To register to pay tax in Georgia you will need to visit the Georgia Tax Center Website. If you would like to apply for a voluntary disclosure you can apply using the Voluntary Disclosure Application.  A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. She can be reached at 954-800-4138 or JeanetteMoffa@FloridaSalesTax.com