I recently planned to travel and had to cancel the trip but forgot to cancel the hotel. Under the agreement the hotel states "Should you need to cancel please contact us 24 hours prior to 05 Sep 2007 local property time to avoid cancellation penalties." Since my credit card was charged the full room rate for one night is it legal for the hotel to charge taxes? They did not perform a service and it was a penalty? Is this taxable?
2007-09-11 01:38:11 · 6 answers · asked by readi29 1 in Business & Finance ➔ Taxes ➔ United States
They provided the service of having a room ready for you to use. Whether you use it or not is irrelevant.
2007-09-11 01:45:58 · answer #1 · answered by airjarrod 7 · 0⤊ 1⤋
Yes, it's perfectly legal for them to charge you taxes. They are charging you a penalty, but the penalty is 1 nights stay, which they have to pay room tax on, so they are passing that tax on to you.
2007-09-11 09:59:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You paid for the room. They are required to collect the tax on all room rentals. The fact that you didn't occupy the room is irrelevant; it was available for your exclusive use. Pretty cut and dried.
2007-09-11 10:16:10 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
sorry u paid a silly tax.
it is legal and mandatory that they charge it.
2007-09-11 08:47:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Correct, they are required to.
2007-09-11 09:03:15 · answer #5 · answered by Rob 2 · 0⤊ 0⤋
They not only can, they are required to.
2007-09-11 09:00:51 · answer #6 · answered by Judy 7 · 0⤊ 0⤋