Can someone explain hotel taxes & fees on the island?

[Okcdiver2]

DD what i meant it was $4.41 us dollars for the tax. It was a Quintana roo occupancy tax it said.

 

[WetInPortland]

How about a adopt a street program for locals to clean their streets around their houses.

There are a couple of efforts along these lines:

Keep Paradise Beautiful - Cozumel

Trash Walkers Cozumel

 

[DandyDon]

I've checked test bookings at a variety of hotels, from the $10 hostels to $30-40 economy hotels to $100 properties to $300 higher end properties - trying a number of different booking sites. This was a tour, not a comprehensive study, but after checking several dozen variations - it seems that the hotels charge whatever "tax" they think they can get away with. Some break down quoted "taxes" with various names, but there is nothing consistent about any of this. My guess is that no government entity is enforcing rules even tho some officials surely collect some funds, perhaps at their discretion. Good Old Mexico.

 

[Christi]

AS El Graduado stated, the IVS (Federal Sales Tax) is 16% and whether you see it on the bill broken down that way or not, 16% comes straight off the top (for ALL BUSINESSES who sell products or services, not just hotels) that the business is liable o the government for. Businesses are tax collectors in that regard. Whether this tax is built in to the price you're paying or if they show it as a separate line item broken down to show you all costs is up to the business - but regardless. if it is a legally registered business, 16% of what you pay goes to he government in the form of a sales tax.

The 3% is the occupancy tax and again, whether it is bundled in with the 16% to show the effective 19% rate or shown separately or not shown at all, the hotel has to pay both the 3% and the 16% which go to different places. This tax should be charged by hotels, air b & b's, VRBO, etc.

If you book through expedia or one of the wholesalers,. read the fine print, they DO NOT include the tax in the price you're quoted originally.

Also, those who rent out their houses or condos as vacation rentals through VRBO or through AIr B & B, etc. are about to see a big change in tax laws as far as enforcement and penalties - so don't be surprised if you see them start charging the MX sales tax and occupancy taxes as they have always been required by law to do.

 

[DandyDon]

The 3% is the occupancy tax and again, whether it is bundled in with the 16% to show the effective 19% rate or shown separately or not shown at all, the hotel has to pay both the 3% and the 16% which go to different places.

Most do quote taxes as an extra charge, but 19% is rare - broken down or combined. The range usually seems to be 20 to 30%. Beds Friends Hostel quotes $10.86 for a dorm bed plus $16.33 taxes and fees. The variety is amazing.

If you book through expedia or one of the wholesalers,. read the fine print, they DO NOT include the tax in the price you're quoted originally.

Expedia does quote taxes, usually close to 19%, but I did notice a few others that did not.

VRBO quotes exactly 3% lodging taxes plus about 11% service fee. They seem to skirt a lot of issues.

I did email my booking site asking them to explain the 22.54% taxes. Their reply did not really make sense, pretty garbled actually, but seem to say that they did not calculate those but simply quoted what they properties said. I have also asked my hotel to explain, but no reply yet.

 

[Christi]

Most do quote taxes as an extra charge, but 19% is rare - broken down or combined. The range usually seems to be 20 to 30%. Beds Friends Hostel quotes $10.86 for a dorm bed plus $16.33 taxes and fees. The variety is amazing.


Expedia does quote taxes, usually close to 19%, but I did notice a few others that did not.

VRBO quotes exactly 3% lodging taxes plus about 11% service fee. They seem to skirt a lot of issues.

I did email my booking site asking them to explain the 22.54% taxes. Their reply did not really make sense, pretty garbled actually, but seem to say that they did not calculate those but simply quoted what they properties said. I have also asked my hotel to explain, but no reply yet.

Again, the 16% and the 3% for lodging is a LAW - not anoption. So whether or not YOU see it broken down, the establishment still has to pay it.

 

[DandyDon]

Again, the 16% and the 3% for lodging is a LAW - not anoption. So whether or not YOU see it broken down, the establishment still has to pay it.

I understand. What I don't understand is why many quote significantly more and call them taxes.

 

[Christi]

I understand. What I don't understand is why many quote significantly more and call them taxes.

Oh, that I don't know - they definitely should not be charging more under the guise of taxes. Even marine park fees are not taxable because they ARE a tax. Likewise, the environmental fee for hotels is a tax.

 

[DandyDon]

I don't think many would notice, they'd just pay - myself included usually. Since we know that the taxs are 16% IVA (federal sales tax), 3% room tax (a state tax on hotel room-nights), and a "city environmental clean-up tax" that will be reset each year - I think I can demand an
explanation from the property.

 

[ggunn]

I don't think many would notice, they'd just pay - myself included usually. Since we know that the taxs are 16% IVA (federal sales tax), 3% room tax (a state tax on hotel room-nights), and a "city environmental clean-up tax" that will be reset each year - I think I can demand an
explanation from the property.

Or, you could just look at the bottom line and decide whether it's the right price for what you expect to get, and not worry about how much of what you pay goes where. That's what I do when I am on Cozumel; it's not like I could change anything.