Collection of parking and business improvement area special assessments by lodging businesses

Intended audience: Lodging businesses in Parking and Business Improvement Areas.

Effective May 10, 2021, lodging businesses that collect a Parking and Business Improvement Area special assessment from their guests do not have to collect sales tax or pay business and occupation (B&O) tax on such charges.

Are there any requirements?

Yes. You must separately state the charge for the special assessment and the room rate on all sales documents.

Do I need to report these charges?

No. Separately stated charges for the special assessment are not part of the selling price and do not have to be reported to the Department of Revenue.

More information

Engrossed Substitute House Bill 1512.

Questions?

For general tax questions, please contact us online or call 360-705-6705