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Last Updated: 6/26/2018

Sales – Fees and Other Charges

Fees and other charges by lodging facilities are taxable unless an exemption applies. See the table below for examples of taxable sales.

Taxable Charges


Admissions and fees for recreational areas and facilities

For more information, see Fact Sheet 123, Admissions and Amusement Devices.

  • Campgrounds

  • Golf courses

  • Mini golf courses

  • Picnic grounds

  • Playgrounds

  • Tennis courts

  • Health clubs

  • Swimming beaches and pools

Copy Charges

Charges for copies are taxable, including copies from coin-operated machines.

Equipment Rentals

Charges to rent equipment billed separately from a nontaxable meeting room. Examples include:

  • Audio-visual equipment
  • Computers
  • Decorations
  • Tables and chairs

Fax charges

Charges to send a fax are taxable.

Food and beverage sales

For more information, see the Food and Bar Establishments Industry Guide.

  • ​Restaurant
  • Bar
  • Room service
  • Catering charges
Parking services

For more information, see the Parking Service Providers Industry Guide.

Parking fees are taxable, including:

  • “Honor box” systems
  • Valet parking
  • Car washing services

Recreational equipment rentals

Charges to rent:

  • Athletic equipment
  • Boats and pontoons
  • Canoes
  • Paddle boats
Coin-operated entertainment and amusement devices

For more information, see Fact Sheet 158, Vending Machines and Other Coin-Operated Devices.

The use of all entertainment and amusement devices is taxable. Examples include:

  • Batting cages
  • Cranes
  • Foosball and pool tables
  • Jukeboxes
  • Photo or video booths
  • Video and pinball games
  • Rides

Vending machines

For more information, see Fact Sheet 158, Vending Machines and Other Coin-Operated Devices.

Starting July 1, 2017, the only taxable food sold through vending machines or honor boxes is prepared food, soft drinks, candy, and dietary supplements. Previously, all food sold through a vending machine was taxable.

Tips and Service Charges

Voluntary Tips

Tips that a customer voluntarily leaves or adds to a credit card receipt are not taxable.

Tips and service charges added by seller

Tips or service charges a seller adds to the bill are taxable, even if the tip amount is given to employees. The table below shows which taxes apply.

Tips or service charges for these items:

Are subject to these taxes:

Food only

  • 6.875% state general rate sales tax
  • Any local and special local taxes that apply

Liquor only

  • 6.875% state general rate sales tax
  • 2.5% liquor gross receipts tax
  • Any local and special local taxes that apply

Food and liquor combined (see note below)

  • 6.875% state general rate sales tax
  • 2.5% liquor gross receipts tax
  • Any local and special local taxes that apply

Note: If you can divide the tip or service charge to show what portion is for food versus liquor, do not collect the 2.5% liquor tax on the food portion. You must keep records showing how you determined the tax.

Telephone Charges

Charges for the actual cost of a telephone call are not taxable if they are separately stated on the guest’s bill. (Because the charge from the phone company to the hotel includes sales tax.)

Charges for making the telephone service available to guests are taxable. For example, if a hotel charges 50 cents per local call, it is an access charge and it is taxable.

Telephone call accounting systems

Many hotels use “call accounting systems” to track and determine the amount to charge guests for long distance phone calls.

If you use a call accounting system, you must:

  • Charge sales tax on the total amount billed to a guest for their long distance telephone service.
  • Pay sales tax to the telephone company for all telephone services.

Note: If you can distinguish between telephone calls billed to guests and your own administrative use, you may adjust the taxable amount reported on your sales tax return. To do this, subtract the actual costs of the long distance calls made by guests from your taxable sales.

Damage charges

Damage charges may or may not be taxable depending on what kind of property was involved.

For damage to:

The charges are:

Tangible items such as equipment or boats


Real property such as a hotel room or building

Not taxable

Combination of tangible items and real property

Taxable (The entire charge is taxable unless the nontaxable portion is separately stated.)

Gift shop sales

Most gift shop sales are taxable, except for food, clothing, and drugs. For examples, see the table below.



Candy, see Fact Sheet 102A

Clothing, see Fact Sheet 105

Dietary supplements, see Fact Sheet 102E

Drinks that contain 50 percent or more juice, see Fact Sheet 102C

Grooming and hygiene products, see Fact Sheet 117F

Grocery items, see Fact Sheet 102A

Magazines and periodicals

Newspapers and tabloids

Soft drinks, see  Fact Sheet 102C

Over-the-counter drugs, see Fact Sheet 117A

No-show charges

No-show charges – for when a room was held for a customer who neither arrived nor canceled the reservation –are taxable because a sale was made.

< Sales – Residential Short-Term Rentals

Nontaxable Sales >

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