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The Hotel Room Occupancy Tax must be paid on the occupancy, or the right of occupancy, of a room or rooms in a hotel. A "hotel" includes an apartment, hotel, motel, boardinghouse, bed-and-breakfast, bungalow, or club, whether or not meals are served. The occupant of any room or rooms in a hotel must pay the tax.
One of three taxes and one fee that apply to hotel room rentals in New York City. The Department of Finance collects the Hotel Room Occupancy Tax, also known as the Hotel Tax. The New York State Department of Taxation and Finance collects:
1. New York State Sales Tax
2. New York City Sales Tax
3. New York State Hotel Unit Fee ($1.50 per unit per day)
Hotel operators and remarketers (when a room has been purchased through a re-seller) collect the tax from the occupant. A building is not considered a hotel if rooms are only rented for up to 14 days or are only rented once or twice during any four consecutive tax quarters of a 12-month filing period. Rentals to permanent residents should not be included in the number of rooms counted as hotel room rentals.
Who is Exempt from this Tax?
- A permanent resident (one who occupies a room for at least 180 consecutive days;
- New York State, a political subdivision of the State, or a public benefit corporation;
- The United States;
- The United Nations;
- A not-for-profit organization that was formed and operated exclusively for religious, charitable or educational purposes, or for the prevention of cruelty to children or animals.
Every operator of a hotel or small facility must file a Certificate of Registration with the Department of Finance and obtain a Certificate of Authority empowering the operator to collect the Hotel Room Occupancy Tax.
In case of operators opening new hotels, a Certificate of Regitration must be filed within three days after guests begin renting rooms. Within five days. Every operator as described above is required to file a Tax Return. Quarterly returns must be filed for each property covering the three-month period ending on the last day of August, November, February and May of each calendar year. The return must be filed within 20 days of the end of each quarter. Effective for periods beginning on and after September 1, 2004: Operators can file a tax return on an annual basis if their hotel has fewer than ten (10) rooms (small facilities) or ten (10) furnished apartments. This return will be due on March 20th of each year covering the prior period of March 1st to the last day of February.
An operator subject to the tax should file a single tax return for furnished apartments or living units for single-families located at multiple addresses, but registered under a single certificate. A schedule should be attached listing the location of each apartment or living unit. Returns should be mailed to the following address: NYC Department of Finance CRT Tax Return Unit PO Box 5160 Kingston NY 12402-5160
Additional resources
NYC Department of Finance (DOF)
Hotel Room Occupancy Tax
PO Box 5160
Kingston NY 12402-5160
For further assistance, please call 311 and ask for: Finance - Hotel Occupancy Tax