taxes add up to at least $7.00 a day for the time that you are there.
2006-10-06 02:01:57 · 4 answers · asked by ♣DreamDancer♣ 5 in Business & Finance ➔ Other - Business & Finance
The state of RI have a 7% sale tax on any taxable item. hotel has to add the 7% sale tax to that item. Then the town where tourist is massing like Newport the state add 5% to that 7% sale tax. That 5% call hotel tax is money that the town want because the 7% is not getting into the city of Newport so town want that 5% back to the town where the income was earned.
Yes it's too much tax compare to MA where sale tax is 5%
2006-10-06 02:13:25 · answer #1 · answered by Kenshin 5 · 1⤊ 0⤋
Because the state, city, and county impose occupancy taxes on hotel stays.
Merchants don't get to keep the taxes they collect. It goes straight to the government.
They have to show that they charged these amounts in addition to and based on their own service charge.
2006-10-06 02:10:54 · answer #2 · answered by Phoenix, Wise Guru 7 · 2⤊ 0⤋
Because the hotels has to pay those taxes. I guess they could include that in the per room per night charge, but, by charging them separately they could either increase or decrease the amount easier if tax rates ever change.
2006-10-06 02:08:40 · answer #3 · answered by spot 5 · 1⤊ 0⤋
To supplement their tax base.
Most monies are used to improve the areas infrastructure.
2006-10-06 02:09:55 · answer #4 · answered by Doubting Thomas 4 · 1⤊ 0⤋