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Change To Hotel Tax Possible
https://forum.costaricaticas.com/viewtopic.php?f=4&t=25225
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Author:  Mucho Gusto [ Thu Sep 18, 2008 3:43 pm ]
Post subject:  Change To Hotel Tax Possible

Hotel Tax May Go, $15 To Be Added To All Airfares To Costa Rica
Inside Costa Rica

Good news for visitors staying at hotels in Costa Rica, as the 3% hotel tax could be soon eliminated. The bad news is that the government is considering making up the shortfall by added a us$15 flat fee on all airfares to Costa Rica, if the legislation currently before the Legislative Assembly is passed.

Currently, guests at hotels in Costa Rica pay a 16% tax on their room (13% sales tax and 3% hotel tax). The hotel tax on a us$100 a night hotel room would be us$3, or us$21 for a seven night stay. Paying the lower air tax of us$15 is cheaper that the hotel tax., However, budget travellers would not see the same benefit as the cost for a stay at a hostel can range from us$10 to us$20 a night. Using a us$15 per night average, the total tax paid on a seven night stay is only us$3.15.

The objective of the legislation, according to its promoter, Maureen Ballestero, is to boost revenue for the Instituto Costarricense de Turismo (ICT) - Costa Rican tourism board. Although the 3% hotel tax collected by the government is sent to the ICT, more and more visitors are now staying at condos or vacation homes either owned or rented for their stay, which are not subject to the hotel tax.

Ballestero said that in some cases hotel operators are charging the hotel tax but not reporting. "There are more hotels and more visitors, but revenue from the 3% hotel tax has remained the same", said Ballestero.
Ballestero added that it was time to update the system and feels that she will get the support of the other legislators. In 2006, the ICT received us$7.9 millions in revenue from the hotel taxi, an increase of almost 20% over the us$6.6 million dollar revenue in 2005.

Author:  Western [ Thu Sep 18, 2008 7:20 pm ]
Post subject:  Re: Change To Hotel Tax Possible

Mucho Gusto wrote:
Ballestero said that in some cases hotel operators are charging the hotel tax but not reporting.


:shock:
I'm shocked to hear that some underhanded hotel operators would actually find a way to circumvent the government's tax system! :wink:

Cash is king in C.R. Looks like the govt is slamming the door on that loophole. :x

But there is still the 13% sales tax... :lol:

Author:  El Viejo [ Thu Sep 18, 2008 9:37 pm ]
Post subject: 

Contacting a hotel on line and asking for a cash rate always results in a %25-40% rate reduction. It beats internet rates and corporate hotel swho can't tweak their deal. Capitalism at it's best.

Author:  DiegoC [ Fri Sep 19, 2008 7:41 pm ]
Post subject: 

Make a law or policy and someone will find a way to get around. The archetypal example is the overly complex and lengthy US income tax code.

Author:  JazzboCR [ Fri Sep 19, 2008 8:29 pm ]
Post subject:  re: U. S. Tax Code

To amplify Brother DiegoC's remarks, in many cases his quoted example being prime, it's those who benefit from interpreting a code or regulation who write it in the first place. The U. S. Tax Code guarantees full employment for tax lawyers, accountants, and various and sundry money mavens, as well as of course criminal defense attorneys (this is not a knock on any of these professions).

Author:  DiegoC [ Sun Sep 21, 2008 6:14 pm ]
Post subject: 

My guess is that the $26 exit tax will simply be raised to $41. Does anyone know differently?

Until two or three years ago, citizens paid an exit tax of around $40 and visitors paid $26. My numbers may be a little off but they are in the ball park. In other words CR citizens paid more than visitors. That said, why should citizens and residents who live here be required to pay a tax in lieu of a hotel tax?

Additionally, no one likes being taxed, but if the tax money is used for a good reason it can be tolerated. However, this tax benefits the funding a bureaucratic money pit called ICT.

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