No one likes taxes. No one likes resort fees. Who is suprised to learn that these two issues go together?
Hotels that charge one advertised rate and one resort fee instead of charging just one total hotel price are depriving state and local taxing authorities from revenue.
The Row Hotel in New York City advertises a $223.65 hotel room on their website. The hotel has a $25 facility fee. So a pre-tax hotel room at The Row costs $248.65. That is the amount that The Row should be taxed at to calculate the New York City occupancy tax and the New York City Javits Center tax. Yet, because $25 is missing from the total cost of the hotel, the entire price of the room is not subject to the occupancy tax or the New York City Javits Center tax. The resort fee at The Row in NYC is only being charged the New York City sales tax and the New York state sales tax. The facility fee / resort fee/ second room rate at The Row Hotel is only subject to 8.875% taxation. The advertised room rate is subject to a 16.3% tax rate.
New York City is losing out on their hotel occupancy tax and their Javits Center tax by not taxing the entire room rate. This is depriving New Yorkers of important funds that all of the other hotels are paying on their full advertised rate. The fifteen hotels in New York City that charge resort fees are depriving New Yorkers of essential tax revenue.