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SPG reward redemption incurrs tax???

 
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Old Mar 25, 2014, 8:40 pm
  #1  
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SPG reward redemption incurrs tax???

This is a bit new to me. I've done redemptions from SPG, Hilton and Fairmont. I just booked a SPG reward for a stay, and they said I would owe around $50.00 in local and state taxes. I never heard or experienced this before. Was the operator incorrect? I've been booking redemptions for years, this would be the first time I will have to pay tax on a reward stay.
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Old Mar 25, 2014, 8:51 pm
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Tax on award nights>?
Free night award and room taxes
Do I pay taxes on top of cash and points?
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Old Mar 25, 2014, 9:10 pm
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That's great, but it wasn't cash and points. Just cash.
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Old Mar 25, 2014, 9:17 pm
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Originally Posted by comptalk
That's great, but it wasn't cash and points. Just cash.
Just cash? What award redemption are you talking about?
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Old Mar 25, 2014, 9:33 pm
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Originally Posted by comptalk
That's great, but it wasn't cash and points.
All three of the provided links address points-only awards. In particular, see http://www.flyertalk.com/forum/20999043-post21.html.
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Old Mar 25, 2014, 9:48 pm
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Could the $50 really be resort fees?
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Old Mar 25, 2014, 10:12 pm
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My bad. Long day/night. Just SPG points, no cash. Do not think it was a resort fee. She stated it was for local and state sales tax. Thought it was weird.
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Old Mar 25, 2014, 10:32 pm
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It might help if you disclose the property and location. It's possible that there could be some weird local "taxes" that are occupancy fees independent of room rates that might be charged for award stays, but IME normal percentage taxes and service charges are not charged on SPG award stays, although IIRC resort fees are.

What does your confirmation say?

Have you tried to call Starwood again and ask another agent for clarification?
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Old Mar 25, 2014, 10:35 pm
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It would help to know where this occurred.
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Old Mar 25, 2014, 10:42 pm
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Originally Posted by waywired
It would help to know where this occurred.
I don't think it has occurred yet. The OP seems to be about a future stay.
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Old Mar 25, 2014, 11:06 pm
  #11  
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It would be for the Le Meridien in Philadelphia, PA.
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Old Mar 25, 2014, 11:25 pm
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Originally Posted by comptalk
It would be for the Le Meridien in Philadelphia, PA.
Have stayed here on points. Pretty sure there were no taxes/fees of any sort. Used a suite night award to get the "Family Suite" (nice 2-bedroom suite with view of the clock tower). Also stayed here on cash and points and I think I did pay tax on the cash portion.

I'd bet a fair amount that you just got a mistaken agent. In fact I'm pretty sure I've had an agent tell me in the past that I would be responsible for taxes and fees but I didn't pay it any mind.
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Old Mar 25, 2014, 11:52 pm
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Originally Posted by platbrownguy
Have stayed here on points. Pretty sure there were no taxes/fees of any sort. Used a suite night award to get the "Family Suite" (nice 2-bedroom suite with view of the clock tower). Also stayed here on cash and points and I think I did pay tax on the cash portion.

I'd bet a fair amount that you just got a mistaken agent. In fact I'm pretty sure I've had an agent tell me in the past that I would be responsible for taxes and fees but I didn't pay it any mind.
Good to know.
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Old Mar 26, 2014, 2:07 am
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With nearly 600 nights.. this has happened to me. Mostly before the awards stays counted to status.

I'd always accept it at check out, let it post to my account, complain to spg and see it removed with some compensation points.

Generally a win if you play it right.
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Old Mar 26, 2014, 7:32 am
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Originally Posted by comptalk
It would be for the Le Meridien in Philadelphia, PA.
Definitely no taxes on the room rate for a 100% points stay.
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