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Are you ready for a sin tax?
https://forum.costaricaticas.com/viewtopic.php?f=1&t=47793
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Author:  Sauceman2015 [ Thu Aug 06, 2015 11:24 am ]
Post subject:  Are you ready for a sin tax?

A new bill passes the first stage. The approval of the law changing the taxation of motels is expected to generate between ¢800 and ¢900 million colones in tax revenue, that will be administered by the Instituto Mixto de Ayuda Social (IMAS), for programs to support the needy, Ch*ldren and housing.

The bill, that was approved Tuesday in first reading, changes the income tax paid by motel operators from one based on monthly profit to a flat tax rate based on the number of rooms.

The change also affects strip clubs (called night clubs or “nights” in Costa Rica) and massage parlours (with or without a happy ending), among others.

Under the bill, if approved in second and final debate, motels are divided into three categories: A, establishments with more than 100 rooms; B, from 50 to 100 rooms; and C, less than 50 rooms.

The tax for category A motels the tax is equivalent to 13% of the income of a clerk of the Judiciary (currently around ¢400.000 colones monthly); in category B, the tax rate is 10%; and in category C, 5% per month.

Under this formula, a category A motel would pay a tax of ¢52.000 colones, per room, per month. B motels ¢40.000, and C motels ¢20.000.

The use of a percentage based on a minimum particular public sector salary is a popular use of lawmakers, taking advantage of twice year increases in wages.

Author:  Pops [ Fri Aug 07, 2015 10:04 am ]
Post subject:  Re: Are you ready for a sin tax?

This seems like a good formula for taxation. I don't see this putting a big dent in most of the establishments effected and would be a much more reliable formula than depending on the business to accurately report its income that is probably 90% or more in cash. There is another thread giving another description of the pending tax increase. I hope this one proves to be the correct one. Businesses are already paying taxes but if the government expects this formula to generate more revenue, it means they have analyzed what they are receiving based upon what is being reported and comparing that with what they will receive if they change to a flat tax based upon number of rooms. It will cut into the profit of establishments who have been under reporting but will not close them down. I go to a motel that costs $40 for 12 hours. I have never stayed 12 hours. It has close to 100 rooms. On Friday and Saturday night it is packed.

Author:  Ilv4play [ Fri Aug 07, 2015 3:30 pm ]
Post subject:  Re: Are you ready for a sin tax?

Pops wrote:
I go to a motel that costs $40 for 12 hours. I have never stayed 12 hours. It has close to 100 rooms. On Friday and Saturday night it is packed.


Ruta 32 has 122 rooms, not that I have ever been there......

Author:  Sauceman2015 [ Fri Aug 07, 2015 5:50 pm ]
Post subject:  Re: Are you ready for a sin tax?

Ilv4play wrote:
Pops wrote:
I go to a motel that costs $40 for 12 hours. I have never stayed 12 hours. It has close to 100 rooms. On Friday and Saturday night it is packed.


Ruta 32 has 122 rooms, not that I have ever been there......


I think that is the one Pops was referring to. His home away from home. LoL

Author:  Pops [ Fri Aug 07, 2015 8:31 pm ]
Post subject:  Re: Are you ready for a sin tax?

I never counted. It is convenient. There are several more motels around on the same design but out of the way for me. Rent for 12 hours for $40 gets you a king sized bed, comfortable mattress, large Jacuzzi, steam room, shower, room service, tv with porno, very discrete (drive in close garage door pay through sliding door system), a mile from the gulch. I have no doubt that each room is in use at least twice a day, probably on an average of three or more times. The revenue from one day of use would pay for the flat tax as described by OLD. Not a bad gig. I wish they had a motel on the same model in Jaco.

Author:  Grey Ghost [ Sat Aug 08, 2015 12:54 am ]
Post subject:  Re: Are you ready for a sin tax?

Motel Eden......i have stock there :P ....oh my ACE in the hole :wink: .......MaY be there if my room is not ready upon arrival.... :D

Author:  Ilv4play [ Sat Aug 08, 2015 1:53 am ]
Post subject:  Re: Are you ready for a sin tax?

I have been there where all the doors are down so we went to a bar for a little while and returned and found one open. When we were driving around though I saw the highest number was room 122. That place is probably one of the best short term places for comfort and amenities.

Author:  JazzboCR [ Sun Aug 09, 2015 3:39 pm ]
Post subject:  Re: Are you ready for a sin tax?

Just for shits and grins, I looked up how quickly I could drive there from near my home--they have me driving amazingly, blazingly fast through Central America.:
https://www.google.com/maps/dir/Publix+ ... d9.9484634
But seriously here's a notice on the place (I think).: https://foursquare.com/v/hotel-de-paso- ... e248d316cc
By the way, how's my syntax?

Author:  Ilv4play [ Sun Aug 09, 2015 8:55 pm ]
Post subject:  Re: Are you ready for a sin tax?

Jazzbo that is the place. Definitely worth checking out if you have never been.

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