Latest Information on the New York City Hotel Remarketer Tax
September 2, 2009
The New York City Department of Revenue has posted new information regarding the city’s hotel remarketer tax. NTA continues to oppose these updates to the tax and continues to seek clarity and answers.
The information offers guidance to tour operators in calculating the remarketer tax. Of particular interest to tour operators is language regarding the "unbundling of packages." The Department of Revenue states that:
"When a remarketer has put together or purchased a package for resale and the remarketer knows the price of the components, a "cost of components" method should be used to determine what part of the package represents taxable additional rent. The taxable additional rent would be based on the ratio of the wholesale cost of the hotel room to the wholesale cost of all the components of the package multiplied by the total mark-up for the package. However, many remarketers buy packages from other remarketers, who may have bought them from others, and so on. They frequently have no idea of the cost of some or all of the components. In that instance, a 15% markup on 70% of the average retail rate of a similar room may be used to compute additional rent."
In addition, information has just been posted regarding the Certificate of Registration.
If you have any questions, contact Matt Grayson at 800.682.8886, ext. 4250, +1.859.226.4259, or matt.grayson@NTAstaff.com.
