Lodging businesses often provide other services in addition to lodging.

Retail services

Some amenities are defined as retail sales or services, so they are subject to the Retailing business and occupation (B&O) tax and you must collect sales tax; lodging taxes may also apply. Examples of retail services common to lodging businesses include:

  • Food services.
  • Gift shop sales.
  • Vehicle parking.
  • Telephone calls.
  • Faxing and copying.
  • Laundry and dry cleaning services.
  • Charges for using meeting and banquet rooms.
  • Charges for providing indoor or outdoor space to hold events.
  • Video, movie, or game rentals.

Lodging businesses with restaurants should refer to our restaurant guide for more information. Lodging businesses, such as campgrounds, with general/grocery stores should refer to our convenience store guide.

Lodging business that allow timeshare members to use their points in exchange for lodging should refer to our Tax Topic article titled Timeshare agreements.

Other services

Some amenities are not considered retail sales. These types of charges are subject to B&O tax under the Service and Other Activities classification. Retail sales tax does not apply.

Examples of guest charges that are subject to the Service and Activities B&O tax classification include:

  • Resort fees.
  • Charges for Internet access.
  • Deposits kept as a penalty for late cancellations.
  • Self-service or coin operated laundry machines owned by the lodging business.