Florida DOR Determines Sales Taxability of No-Show Charges in Hotels

The Florida Department of Revenue (DOR) Nov. 22, 2017, determined in a letter ruling that hotel no-show charges are taxable. Taxpayer inquired whether Taxpayer’s no-show charges are subject to sales and use tax when a guest with a reservation fails to cancel the reservation and is a no-show. The DOR held that since Taxpayer’s guests are guaranteed a room upon making a reservation until 3:00 a.m. to 4:00 a.m. the next morning, sales tax is due on the no-show charge because the guests for all practical purposes are guaranteed a room. [Fla. Dep’t of Revenue, Technical Assistance Advisement 17A-026, 11/22/17] ...