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Lawmakers vote to double the tax on motels to 60%
By the A.M. Costa Rica staff

Lawmakers overwhelmingly voted Tuesday to approve an increase in tax on motels, the name of places here for sexual liaisons. Operators will be hit with an 83 percent tax

Some 40 lawmakers approved on first reading the bill, No. 18.718, that doubles the 30 percent tax to 60 percent. The Instituto Mixo de Ayuda has said that this would bring in 700 million colons a year. That would be about $1.33 million and 200 percent more than the agency gets now from the tax.

The bill specifically lists the Instituto Mixto de Ayuda Social as the recipient of the tax and gives the government agency the power
to close down operations that fail to pay the tax.

The tax also covers massage parlors, night clubs, pensions and hotels that are not listed with the Instituto Costarricense de Turismo. These operations, too, are those designed for sexual encounters.

Such places already pay an additional 23 percent tax, so the final tax bill will be 83 percent on top of their own fees.

Some 133 businesses are believed to be subject to the proposed tax.

The bill needs one more vote in the legislature before being sent to President Luis Guillermo Solís.

More money for those corrupt fuckers to steal.

That's not an additional tax...it is a confiscatory fee intended to curb the operation of these businesses. Guess we'll be seeing more folks phucking in their parked cars or illegal operations running out of folks homes!

Wonder how they plan to enforce it, if signed into law...more raids and "inspections" in full riot gear.....??

Well, my knowledge of economics indicates the additional tax will be passed along to the customer or consumer by the businesses. According to everything I have been reading on CRT, tourism has steadily been declining in CR. Common sense would tell you that increased taxes to be passed on to the consumer would be counter productive & depress tourism further. Of course, the CR government may actually wish to curb the operation of certain business types.

Whatever the reason, it looks like the tax will pass & prices will probably rise at the places most of us frequent. For me, CR prices are currently about at the max level I care to spend for CR style entertainment based on my opinion of value for money spent. I consider hotel rooms, drinks, meals & other activities as entertainment while vacationing. Higher costs for the same entertainment is simply less value for the money.

I am returning to CR in 4 weeks with 4 friends for a short vacation after an 11 month LOA. I'm sure we will all have fun but I must give some serious thought about returning if the costs for the same entertainment increase significantly after the tax is imposed. There are other places I enjoy vacationing which offer more value for my money by way of nicer hotels, drinks, meals & other activities. CR has been a nice change of pace. NO, I'm not a cheap ass. NO, I'm not a CR sucks guy either. Just my thoughts & opinions!

The Colombian peso closed at COP 2,951 per US dollar today....that's what I call value for your entertainment money!

The Costa Rica colon is being artificially manipulated and propped up, it has for quite a while. When it blows up it will be ugly, ugly for the local economy...great for us tourists. It will certainly bring the entertainment value back closer to where it should be. Until then, there is a disconnect between cost and quality, for sure!

I know if I was a business owner I would be very concerned as most people that enjoy the hobby will soon be spending their dollars elsewhere. The DR and Colombia are about to get an economic boost if this goes through. Should be interesting to watch.

its a "sin" tax
no different than the tax we pay on tobacco, or cigarettes...

the question is how the market will react...
would you pay 83% markup on a 40$ session?

it makes a properly negotiated cien freelance session a better value imo
and its starting to get into Germany price range now too.. 200$ more for a ticket and 3hrs extra flight for legit 10s in a luxury setting

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its easier to fool people than to convince them they have been fooled- mark twain

wonder what effect this new tax will have on the DR, SL, Mona Lisa and Zona II??

Based on my personal estimations, for what its worth, just an opinion…the Costa Rica Colon should exchange at about CRC 680 to 700 per US Dollar; not the Banco Central politically massaged and artificial $528 to 540…

We'll see, time will tell…but artificial pegs always blow up!

It hasn't blown up yet and it has been a lotta years.

The locals use the MP's far more than us gringos, they should be the ones complaining. I am not sure how the government can track this activity anyhow.

Ingus, I absolutely agree! I already pay the "sin tax" on my smokes & avoid the "sin tax" on my alcohol as much as possible by using the duty free shops when traveling.

No, I will not pay 83% mark-up on an original $40 price tag for "high mileage" entertainment.

You are correct about the negotiated freelance option being a better value if the tax passes. Also, your thoughts on CR approaching Germany pricing are exactly my thoughts when comparing CR to my favorite spot in Asia. That's not even considering the CR police horror stories I have read or the wonderful CR family court laws that can cost you a small fortune defending against a chica making up a good lie about you being a baby's daddy or beating her ass. WTF?

The more I think about it, the more I think CR may actually be trying to rid the country of the types of places we frequent. Literally, tax the places to death!

One thing to keep in mind, this tax will only be on the 'room rental' NOT the girls' service fee so the total increase won't be 83%.

For example at Harry's Nasty MP, the total is $40 an hour but only $10 of this is for the room. If Harry passes on the 83% increase and tosses himself a 17% bonus (100% increase), the total session price would be $50, as the room rental goes from $10 to $20.

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The only thing that matters is happiness in all it forms...

You're not. You'll only see the INCREASE in the room rate, as you are already paying the original.

Col! Absolutely right! The locals will just absorb it just like we do when they increase tax on things back home. In the end, who cares? It's still cheaper than at home.

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bypassin' kinky, and usin' the whole chicken!!!