Tax And Other Incidentals Rant

[Snaggletiger]

Every Fall, we like to pick a weekend where AU is playing an away game and head to the beach.  We have people down and throw a game day partay.  Was trying to book a house and on one particular house, I just told them to bite my a$$. Okay, I hung up but I thought about saying it.  The website said $150.00/night.  I knew there would be a couple of other "incidental" fees as we've stayed in this community a ton of times.  Wanted 3 nights. 

Okay, yes sir.  We have that available.  The total for 3 nights will be $903.84.

Excuse me. Did you say $903.84?

Yes sir. Will you be paying with a credit card?

Wait...no....$903.84?  The house is $150.00 a night, amirite?

That's correct sir.  Will you be paying with...

Wait, excuse me.  What am I missing here?  How do you come up with $903.84?

That's 3 nights at $150.00 per night.  $150.00 pet fee.  $162.00 cleaning fee.  $45.00 damage deposit.  And 12% tax.  Oh, and there will be a small charge for using a credit card.

So let me get this straight.  This is a pet friendly place, but you're going to charge me another night's rent for a pet? And tax that?  You're going to charge $162.00 to have someone come in and change the sheets, mop and vacuum? And tax that?  You want a $45.00 damage deposit?  And even though I get that back, you're going to charge me tax on that? Oh, and let's not forget the nominal charge for using a credit card.  You gonna' tax that too?

Oh, no sir. No tax on that.  Is this a Visa or....

Click


So $150.00 a night turned into double that.  Can you tax services in Fla.? A pet fee? Plus, this is the off season and owners who rent their homes are normally doing anything to get people in and offset some cash flow.  Not gouge the living shit out of them.  Anyway..not a cool story, bro..just a rant.   

     

[WiregrassTiger]

Yep. Almost as big of a racket as legal fees.

[wesfau2]

Tried to tell you about staying on 30-A with teh gays and snooty folk.

[Vandy Vol]

Can you tax services in Fla.?

I don't know about Florida tax law, but in most states, services are not taxable.

However, in many states, when that service is inherently combined with a tangible good, then both the cost of the good and the service can be taxed.  As an example, the delivery fee you get charged for pizza?  Taxed.  We've seen lots of pizza places get hit by the AL DoR and municipalities because they didn't pay the proper sales tax on the total cost of the pizza and delivery fee.

This would also apply to something like when a mechanic puts in a new part on your car, except that Alabama has a statute that specifically excludes taxing the labor involved in that.  There are a handful of other exclusions, but for the most part, if a service is combined with a tangible good, both are taxed.

That may be how they're getting away with taxing you on those service fees, but again, I ain't no Florider atturnah, so I'm not positive on that.  HIV, on the other hand...positive on that.

[Saniflush]

Tried to tell you about staying on 30-A with teh gays and snooty folk.

I bet he has one of those little stickers on the back of his car.  We have already heard that he has a little sticker in his trousers.

[Godfather]

#richpeopleproblems

[War Eagle!!!]

#richpeopleproblems

It's not fair!!! My monthly beach trips are costing DOUBLE what they used to cost! I may only be able to go every other month now!!!

[Saniflush]

#richpeopleproblems

says #peoplewithpools

[GH2001]

It being whitepeopleproblems aside, I understand what the nutless one is saying. I was scoping out places in Gulf Shores on VRBO back in Aug for a Sept trip. Saw a few places that were where I needed to be (triathlon near the Hangout) within walking distance so I sent a few inquiries. The responses I got back were almost identical to Snags. Cleaning Fee 125.00, Service Fee 125.00, NON REFUNDABLE Damage Deposit 75.00, Parking Fee 25.00....all on a room that was 90 a night for 2 nights. None of those were disclosed in the ads. Then on top of that the double digit tax on the room, which I understand but some of the owners on VRBO include the taxes in the price. These ads implied the taxes and all other things were included when they were not.  Especially when you hit the little "Instant Quote" button and it gives you a quote that is almost half of what the real quote is. Its just a little disingenious to me. But still optional. They lower the room rates to tease you and jack up the hidden costs when it comes time to book. The price we pay to play the game I guess. Supply and demand and all.....

[Snaggletiger]

See? GH gets it.  High 5. 

The rest of you can bugger off. 

[GH2001]

See? GH gets it.  High 5. 

The rest of you can bugger off.

But like I said, its all optional. Its just somewhat dishonest to hold those fees back until it comes time to pay. Little bit of sticker shock when you think youve gotten a good deal.

[Snaggletiger]

But like I said, its all optional. Its just somewhat dishonest to hold those fees back until it comes time to pay. Little bit of sticker shock when you think youve gotten a good deal.

I can handle a little sticker shock.  Sometimes, it feels pretty good, depending on the sticker.  But exactly double the room rate?  Now you're just being an butthole because you can.

[Godfather]

says #peoplewithpools

Yeah well if you knew the whole story, that isn't really the case, but since you never call no moe.

[Snaggletiger]

Yeah well if you knew the whole story, that isn't really the case, but since you never call no moe.

Don't forget #peoplewithlargeboats

[Saniflush]

Don't forget #peoplewithlargeboats

#doingflipsandshit

[chityeah]

Doesn't every one here live within 4 miles of the beach like me? My view while having a cocktail and medicinal smoke Wednesday. It was horrible.

[Tiger Wench]

I don't know about Florida tax law, but in most states, services are not taxable.

Actually, there are only 16 states that do not require sales tax on services.  AL, CA, CT, FL, GA, IL, IN, KY, MI, MS, ND, NY, OH, OK, RI and TX.  This is an integral part of the business model change we are implementing in one of our divisions right now (from an equipment rental business to a master limited partnership, in the event any nerds are interested), and I am unfortunately more well versed in this topic that I ever wanted to be.

[Godfather]

Doesn't every one here live within 4 miles of the beach like me? My view while having a cocktail and medicinal smoke Wednesday. It was horrible.

:raises hand:

[Vandy Vol]

Actually, there are only 16 states that do not require sales tax on services.  AL, CA, CT, FL, GA, IL, IN, KY, MI, MS, ND, NY, OH, OK, RI and TX.  This is an integral part of the business model change we are implementing in one of our divisions right now (from an equipment rental business to a master limited partnership, in the event any nerds are interested), and I am unfortunately more well versed in this topic that I ever wanted to be.

I'm not sure that your list is correct.  Tennessee follows the same rules as Alabama, where any labor/service that is inherent to the creation, installation, or repair of tangible personal property is taxable, but otherwise is not taxable.  I grew up in Tennessee and just double checked on their gubment website.

By statute, there are several services that are taxed by themselves (cable and telecommunications services are two that I know of off the top of my head that have their own sales tax rate in Tennessee), and the services that your company provides may be taxed, but those are the exceptions.  As a general rule of thumb, services by themselves aren't taxed unless specifically mentioned in a statute or otherwise inherently involved with tangible goods.  At least that's the case in Tennessee and Alabama, and I presumed it's the same in most states, but maybe not.

[Tiger Wench]

I'm not sure that your list is correct.  Tennessee follows the same rules as Alabama, where any labor/service that is inherent to the creation, installation, or repair of tangible personal property is taxable, but otherwise is not taxable.  I grew up in Tennessee and just double checked on their gubment website.

By statute, there are many services that are taxed (cable and telecommunications services are two that I know of off the top of my head that have their own sales tax rate in Tennessee), and the services that your company provides may be taxed, but as a general rule of thumb, services by themselves aren't taxed unless specifically mentioned in a statute or otherwise inherently involved with tangible goods.  At least that's the case in Tennessee and Alabama, and I presumed it's the same in most states, but maybe not.

Per the documents from our tax attorneys, for purposes of our MLP, we don't charge sales tax in these 16 states.  You are welcome to call them.