Tax

This fourteenth annual HVS Lodging Tax Study presents comprehensive data on city, state, and special district lodging and sales taxes imposed on lodging sales. We provide historical data on tax rates and the collection and distribution of revenue from lodging taxes levied in all 50 States and the 150 largest US cities.

America’s hotels are projected to generate record levels of federal, state, and local tax revenue this year while paying employees historic totals of wages, salaries, and other compensation, according to state-by-state projections released today by the American Hotel & Lodging Association.

This report focuses on three tax incentives proposed under the title ‘American Innovation and Economic Growth,’ applicable to the hospitality industry.

Based on a sample of more than 3,000 hotels from CBRE’s Trends in the Hotel Industry database, U.S. hotel property tax expenditures averaged $2,626 per available room (PAR) in 2022. This is 10.8% less than the $2,943 PAR recorded in 2019, before the COVID-19 pandemic. Concurrently, the earnings before interest, taxes, depreciation, and amortization (EBITDA) for these same properties fell by 1.7%.

National Restaurant Association’s webinar with Frost Law tax experts explains how to get the most out of your returns.

This study examines the current status and historical trends of lodging taxes and policy trends in the US and analyzes lodging tax rates and revenues across a broad range of US cities. It includes lodging tax rates/collections on 150 US cities and all 50 US states.

Efforts to collect occupancy taxes on Airbnb lodging listings, designed by public policy makers to regulate the homesharing market, have put individual hosts at a distinct disadvantage compared to commercial listings, rather than leveling the playing field as intended, new research shows.

According to the March 2022 edition of CBRE’s Hotel Horizons national forecast report, the total revenue for a typical U.S. hotel is not expected to return to pre-COVID 2019 nominal dollars until 2023. Accordingly, hotel owners and operators continue to seek ways to control expenses. One potential reduction opportunity is property taxes.

If you are planning to make a large gift as part of your estate plan, you should consider taking advantage of the current tax exemption in effect until the end of 2025. After this time, the exemption will revert back to approximately one-half of its current value. This has potentially huge implications for hospitality executives and other high-net-worth individuals. Gordon Schaller, managing partner of JMBM’s Orange County office, explains below.

While the impacts of the COVID-19 pandemic on the lodging industry are ongoing, this tenth annual HVS Lodging Tax Study quantifies the revenue impact of the pandemic over the past year. An analysis of 25 major US markets shows losses totaling approximately $1.3 billion in 2020 from historical levels in 2019. HVS forecasts a loss of $1.45 billion in rooms revenue in 2021 from a baseline scenario with no pandemic.