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Understanding Tourism-Related Taxes in Utah

TourismThe backbone of the tourism industry is good customer service. Without it, people won’t be encouraged to buy products, pay for services, or even visit a place. Depending on this factor alone, it can decide how your business will go. Knowing how your state charges tourism-related taxes can make a difference. After all, nobody wants to pay more if they can have something for less.

The Utah State Tax Commission and Tanner Co say that taxes can be overwhelming, but if you try to know what they are and how they work, you’ll figure out why they’re important.

Transient Room Tax

Businesses in the hospitality industry have their own tax regulations. For instance, all counties in Utah impose a Transient Room Tax for hotels, motels, inns, campgrounds, and tourist homes. This depends on where your accommodation business is located, though.

A large-scale hotel along the busiest streets of Salt Lake City may have an 11.85% total tax package per every room booked, while a rural area hotel may only have 9%. The Utah Tourism Industry Coalition noted that all counties could charge a 4.25% TRT tax if the stay is less than 30 consecutive days. The State Tax Commission is responsible for collecting this, but other counties do it themselves. These include Davis, Duchesne, Emery, Garfield, Grand, Rich and Utah.

TRCC (Restaurant) Tax

Restaurants in Utah collect 1% tax from customers in the form of tourism, recreation, cultural, convention, and airport facilities (TRCC). About five counties— Emery, Piute, Millard, and San Juan—don’t implement this, however. Customers usually pay around 6.75% to 9.10% tax on the prepared food and beverages they order. The tourism marketing organization of a Utah county may use the tax collected to market and promote their own county, bringing in more tourists for revenue.

These are only some of the taxes involved in operating your tourism-related business. If you find this confusing, then it won’t hurt hiring professionals who can help you understand this matter better.

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