State Law Changes in the Hospitality Industry & What You Should Know
At Grant McCarthy Group, our tax services are focused on helping clients with all business tax-related issues, including practices, procedures, compliance and multi-jurisdictional tax complexities. With our team’s broad and deep industry experience, we quickly assess situations and determine the appropriate service solutions to help our clients reduce their tax burdens and maximize their cash flow.
State laws are revised for many reasons. Some state laws are changed immediately or in some cases, years or decades.
With our team’s broad industry experience and knowledge, we will make sure you stay informed of the latest changes to state law that affect you and your business. Below are updated laws for 2021 thus far.
Ohio – Pandemic Property Tax Relief
The Ohio Governor signed a law allowing Ohio businesses to seek pandemic-related property tax relief. The bill will allow for a “special valuation complaint filed for tax year 2020″ requiring property to be valued as of Oct. 1, 2020 instead of Jan. 1, 2020. The law also permits multiple valuation complaints in the same triennial valuation period for tax years 2020 through 2022, so long as an owner claims property dropped in value due to the pandemic or state Covid-19 orders. View bill here.
Massachusetts – Guidance re: Advance Payment Requirements for Sales/Occupancy Taxes
The Massachusetts Department of Revenue (DOR) issued guidance addressing the newly enacted prepayment provisions for sales, meals, and room occupancy excise taxes in the form of “frequently asked questions.” Such guidance addresses, among other things, how taxpayers should claim the credit for the advance payment on the tax return, whether use tax should be included with the advance payments, and which additional taxes and fees should be included with the advance payment. View information here.
Georgia – Law Imposes Excise Tax on Marketplace Facilitators
Effective July 1, 2021, Georgia will impose its excise tax on rooms, lodgings, and accommodations on marketplace facilitators, including the $5 nightly excise tax. Note that the new law imposes the collection burden on the marketplace facilitator. View bill here.
West Virginia – Hotel Rooms Booked through Marketplace Facilitators Subject to Sales Tax
Applicable January 1, 2022, where a hotel or hotel operator contracts with a marketplace facilitator to offer hotel rooms, the marketplace facilitator is responsible for the collection and remittance of the West Virginia hotel occupancy tax imposed by any municipality or county when the marketplace facilitator makes or facilitates West Virginia sales equal to or exceeding $100,000 in gross revenue, or the marketplace facilitator makes West Virginia sales in 200 or more separate transactions for an immediately preceding calendar year or a current calendar year.
All taxes collected are deemed to be held in trust by the marketplace facilitator, on behalf of the hotel or hotel operator, until those taxes have been remitted by the marketplace facilitator to the taxing authority. View bill here.
At Grant McCarthy Group, our clients come first. Staying informed about changes to state laws affect how we all do business and we are dedicated to helping our clients tackle their most important tax challenges and opportunities. With offices and people throughout the country, we do business where you do business. Contact us today to learn more about how we can help you and your business.
