Businesses operating as a Hotel must charge the Hotel Tax on the price of the room paid by the guest.
The term "Hotel" includes an apartment, hotel, motel, inn, guest house, bed and breakfast or other building located within the City which is available to rent for overnight lodging or use of facility space to persons seeking temporary accommodations. This tax is imposed on the rental of a hotel room to accommodate paying guests.
The Hotel Tax is filed and paid monthly for the prior month's activity. The Department of Revenue issues a "Monthly Hotel Tax Coupon Book" to simplify tax payment. Coupons can also be printed from Revenue's website.Effective July 1, 2015
- Adds definition for Booking Agents that facilitate room rentals (ex. AirBnB or FlipKey) and allows them to collect and remit Hotel Tax on operator’s behalf. Booking Agents that do not collect and remit will have quarterly reporting requirements.
- All booking agents must alert operators of the Philadelphia tax obligations.
- Companion legislation laid out rules for residential properties that are rented out on a short-term basis – less than 31 nights in a row.
Who Must File
The hotel operator must file and remit the tax. It is the hotel's responsibility to collect the tax from the guests paying for the room.