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Old Nov 21, 2017, 9:43 am
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Taxes on award night redemptions
I recently redeemed points for an award stay. As is custom, I presumed it included all taxes. When I checked out the hotel claimed I owed a daily tourism tax as this wasn't covered by points. All other taxes were covered. It was only a couple of dollars, but it's the principle of the matter. Was the hotel right or am I right?
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Old Nov 21, 2017, 9:53 am
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Only % taxes are included
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Old Nov 21, 2017, 10:01 am
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Originally Posted by howtofreetravel
Only % taxes are included
Huh?
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Old Nov 21, 2017, 10:05 am
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Originally Posted by hockeyinsider
I recently redeemed points for an award stay. As is custom, I presumed it included all taxes. When I checked out the hotel claimed I owed a daily tourism tax as this wasn't covered by points. All other taxes were covered. It was only a couple of dollars, but it's the principle of the matter. Was the hotel right or am I right?
https://www.flyertalk.com/forum/11391243-post36.html
https://www.flyertalk.com/forum/11397564-post39.html
SPG picks up taxes based upon value. Those based upon headcount or days are not included. I have had some properties absorb these charges that netted a $0 folio. I also find some things are called taxes that really aren't taxes to make you believe there is nothing that can be done about them (can't fight city hall attitude).
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Old Nov 21, 2017, 10:50 am
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Originally Posted by hockeyinsider
I recently redeemed points for an award stay. As is custom, I presumed it included all taxes. When I checked out the hotel claimed I owed a daily tourism tax as this wasn't covered by points. All other taxes were covered. It was only a couple of dollars, but it's the principle of the matter. Was the hotel right or am I right?
Hotel is correct.
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Old Nov 21, 2017, 1:33 pm
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Originally Posted by hockeyinsider
Huh?
6% state tax on $0 is $0. 15% VAT on $0 is $0. Etc. So whether or not you are "paying" this %-based tax is somewhat meaningless.

But $10 per person per day tax is still $10 per person per day.
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Old Nov 21, 2017, 2:03 pm
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Originally Posted by hockeyinsider
I recently redeemed points for an award stay. As is custom, I presumed it included all taxes.
What did the reservation confirmation say?

Here's the text from a confirmation at a location with a destination marketing fee earlier this year:Rate DetailsSPG Free Nights
Rate is valid for single or double occupancy. Additional person and bedding charges may apply.Taxes
Room rate includes the following:
Hst:
13.0 % Per Room / Per Night Hotel Charges
Room rate excludes the following:
Dmdf:
10.0 % Per Room / Per Night

Emphasis mine.
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Old Nov 21, 2017, 2:59 pm
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Originally Posted by 3Cforme
What did the reservation confirmation say?

Here's the text from a confirmation at a location with a destination marketing fee earlier this year:Rate DetailsSPG Free Nights
Rate is valid for single or double occupancy. Additional person and bedding charges may apply.Taxes
Room rate includes the following:
Hst:
13.0 % Per Room / Per Night Hotel Charges
Room rate excludes the following:
Dmdf:
10.0 % Per Room / Per Night

Emphasis mine.
So your example contradicts what has been stated above. On what will the 10.0% Dmdf be based?
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Old Nov 21, 2017, 3:35 pm
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Taxes
Room rate includes the following:
Gst:
6.00 % Per Room / Per Night
Local Gov Fee:
3.00 Usd Per Room / Per Night
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Old Nov 21, 2017, 5:35 pm
  #10  
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Originally Posted by hockeyinsider
Taxes
Room rate includes the following:
Gst:
6.00 % Per Room / Per Night
Local Gov Fee:
3.00 Usd Per Room / Per Night
You should expect to pay US$3 per room per night on an award booking.
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Old Nov 22, 2017, 9:46 am
  #11  
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Originally Posted by CPRich
6% state tax on $0 is $0. 15% VAT on $0 is $0. Etc. So whether or not you are "paying" this %-based tax is somewhat meaningless.

But $10 per person per day tax is still $10 per person per day.
That is what one would think at first pass. But IF the reward is processed as a payment of room rate, then the taxes would still be computed on that rate, added to the total, with the award payment credited, leaving the taxes due. Think of how they handle cell phones today. A fully subsidized phone still garners sales tax on the retail price. As stated above, typically the % taxes are zeroed or absorbed by the property but headcount fees have not been for me (with very few exception).

As for the rate details on the web, I've found those woefully misleading and don't apply to award bookings. My guess would be the code is not able to differentiate between types of stays.
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Old Nov 22, 2017, 10:04 am
  #12  
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OP - What is the exact location of the property? There are jurisdictions which impose per day per head taxes and some which even specify that it is paid by the customer. Without details, this thread will keep spinning out over maybes.

Also, what exactly did your confirmation say?
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Old Nov 22, 2017, 10:50 am
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Originally Posted by Often1
OP - What is the exact location of the property? There are jurisdictions which impose per day per head taxes and some which even specify that it is paid by the customer. Without details, this thread will keep spinning out over maybes.

Also, what exactly did your confirmation say?
Four Points by Sheraton, Penang, Malaysia. I quoted what it said in post No. 9.
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