Nontaxable Sales

Cancellation charges are not taxable because the room was cancelled; no sale occurred and no sales tax is due.

Gift certificates and gift cards are not taxable when sold. When a customer redeems a gift certificate or gift card, charge sales tax on any taxable portion of the purchase. Apply the amount of the gift certificate or card as a cash payment.

Lodging is taxable when sold to schools, school districts, and nonprofit organizations, even when billed directly to the school or nonprofit organization. They cannot use Form ST3, Certificate of Exemption, to purchase lodging exempt from sales tax.

Businesses cannot use their Direct Pay authorization to buy lodging, meals, or other services exempt from tax.