It's not just small businesses that pay taxes. Mine from 2016:
Jay, do you mean the taxes Weilke mentioned? As far as I'm concerned, I pay them when I stay at a hotel/motel. They are usually broken out on my bill as separate line items for each day. Easy money for the municipality since transients don't vote so there no repercussions politically.
Aren't those passed on to the customer?
Yep, taxation without representation. Take a look at car rental charges, esp if you pick it up at an airport.
Easily solved: just increase your withholdings!
Sold out to Greenleaf, LKQ, Schnitzer, or Pull-a-Part?
I agree with this. The expo I attended last week was well attended by "zor's" pitching their opportunities. I would guess 2/3's were food. That is one sector that would not be the right fit for me.
I couldn't tell you now. It was several years ago, and the company he sold to wasn't really that relevant to the matter at hand. I just remember being stunned by how much they paid this guy.
Yep, those taxes, plus many more.
If you're charging, say, $100/night, the tax is $13. You're only collecting the tax, putting in in a bank account, and sending it off to the Man periodically. It's not ever "your" money and doesn't show up in your P&L.
Well, backing the taxes out of the billing is an easy piece of accounting.
Many are. The COO of the group we are starting to talk too began his franchising career with a few Meineke Muffler locations.
Sorry, not open to discussing this with someone I don't know personally.
That is almost physically painful to read, as it is clearly sincerely believed and not meant to be antagonistic.
For some taxes, the business owner is indeed the tax collector. Sales tax, occupancy tax, convenience tax, entertainment tax, arena tax, municipal and regional district tax, Convention and Visitor tax, park fee....all of these are broken out on my bill. I suppose it is bad that my schools taught me to read. Some are a fixed rate, everyone collects the same tax no matter how much the room costs. Some are a percentage and depends on the room cost. The point I'm making is that I pay these when I stay in a room. Every hotel/motel in a taxing location (usually municipality) has to collect these from me. The Hilton doesn't get an advantage compared to the specialty themed hotel a block away.
For some taxes, the business owner is indeed the tax collector. Sales tax, occupancy tax, convenience tax, entertainment tax, arena tax, municipal and regional district tax, Convention and Visitor tax, park fee....all of these are broken out on my bill. I suppose it is bad that my schools taught me to read. Some are a fixed rate, everyone collects the same tax no matter how much the room costs. Some are a percentage and depends on the room cost. The point I'm making is that I pay these when I stay in a room. Every hotel/motel in a taxing location (usually municipality) has to collect these from me. The Hilton doesn't get an advantage compared to the specialty themed hotel a block away.
I'll grant that the Air B&B (or whatever "sharing economy" entity competes with you) does seem to hold an advantage since they don't seem to need to jump through the hoops you need to do, and probably don't collect all these taxes. Maybe you should reopen as Amelia's Air B&B
Exactly, the taxes ADDED to the hotel's charges can be anti-competitive, and that's when you go to the government as a class to fight for equitable treatment. Online purchases used to go untaxed until enough B&M businesses made a case to have the taxing entities force businesses like Amazon to collect sales tax as if they had a physical nexus in a particular state/locality.For some taxes, the business owner is indeed the tax collector. Sales tax, occupancy tax, convenience tax, entertainment tax, arena tax, municipal and regional district tax, Convention and Visitor tax, park fee....all of these are broken out on my bill. I suppose it is bad that my schools taught me to read. Some are a fixed rate, everyone collects the same tax no matter how much the room costs. Some are a percentage and depends on the room cost. The point I'm making is that I pay these when I stay in a room. Every hotel/motel in a taxing location (usually municipality) has to collect these from me. The Hilton doesn't get an advantage compared to the specialty themed hotel a block away.
I'll grant that the Air B&B (or whatever "sharing economy" entity competes with you) does seem to hold an advantage since they don't seem to need to jump through the hoops you need to do, and probably don't collect all these taxes. Maybe you should reopen as Amelia's Air B&B
Jay, do you take all of the moneys received on guest bill payment and put it in a shoe box until tax filing time? If that's what you're doing, sure, it looks like you are being taxed at some huge rate. But what should be happening is tax collected goes into Account A, and your receivables (the actual charges) go to Account B. Account A is transparent to your bottom line. Your operating costs (gas bill, the electric bill) of course come out of gross revenues, and are deductions. I know you're smart enough to know all that, so I don't understand why we have a disconnect.
Of course we go through all the accounting hoopla to segregate all the various taxes. But that's just accounting sleight of hand.
Jay- I just looked at your web site. Rooms are $109.50 through $139.50. I'm pretty sure that doesn't include the taxes (sales, occupancy, beach, convenience fee, whatever apply to that locality). I don't recall seeing any room rates listed in any hotel mentioning the taxes; the one hotel that does will show a higher price than their competitors and lose business. One can argue that is unfair to the customer- the room costs more than $109.50, maybe a lot more, but that is the way the business works. The only money that really "belongs" to you for expenses is the $109.50, employees, electric, and air conditioning repair. The taxes that aren't listed on the web site, but are included in my bill, belong to the government. If you didn't have those taxes, would your web page show a different price for those rooms?
