Remarketer Tax Will Likely Reduce Room Bookings in NYC
September 1, 2009
New York City consistently ranks as one of the top U.S. destinations for NTA tour operators, but this visitation is likely to be impacted with today’s expansion of hotel room occupancy taxes to include remarketers.
According to an Aug. 24 survey conducted by National Tour Association, more than 80 percent of member tour operators that responded indicated they would book fewer hotel rooms in New York City when the revisions on the hotel room occupancy tax are implemented today. This sample of operators alone book as many as 60,000 rooms a year in New York City.
The New York City Department of Finance posted a memorandum Aug. 14 indicating that all New York City hotel room re-marketers would be required to collect and pay hotel tax on the additional amount they charge the hotel room occupants. Re-marketers were defined in the memorandum as "any person, excluding the operator, having any right, access, ability or authority, through any means whatsoever, to offer, reserve, book, arrange for, remarket, distribute, broker, resell, or facilitate the transfer of rooms…"
At this time, there is no instruction on the New York City Finance Web site regarding how re-marketers should collect, track, or pay this new tax. According to the Aug. 14 memorandum, a Registration Certificate is required for all NYC hotel re-marketers and this certificate is to be obtained by Sept. 3, 2009. The method of obtaining a certificate through the New York City Finance department is not currently known.
NTA opposes this revision on the hotel room occupancy tax and is actively petitioning for additional answers and guidance for members.