Maryland Sales & Use Tax Update
U.S. Only | Priceline has informed Marriott International that they intend to comply with the Maryland Sales & Use Tax law, which requires intermediaries to remit sales tax directly to the state. Thus, hotels should handle Priceline reservations and subsequent billings to Priceline as state tax exempt and not include the state tax in the amount billed to them. Furthermore, any applicable local taxes should be included in the amounts you bill. Priceline has indicated that they began remitting tax as of Friday, July 1, so this impacts any stay on or after that date.
The following changes will need to be implemented as soon as possible:
SS/ES properties:
- MBS Sales Tax will create a new tax rule 7 in FOSSE. This rule will exempt the state sales taxes.
- Tax Rule 7 will need to be attached to the reservation at check-in. Otherwise, the occupancy taxes will have to be rebated from the guest’s folio at check-out. The same (tax) charge codes that were posted by FOSSE must be used when rebating the tax (i.e.,T1, T2, T3, or T4).
Full Service properties:
- Priceline stays should be handled as state sales tax exempt in PMS/Opera. MBS Sales Tax is not able to make any system configuration changes for your hotel. You will need to report the Priceline stays as tax exempt on your monthly tax exempt worksheet.
As Priceline made the change on July 1, please adjust any in-house guests to tax exempt and rebate the accrued taxes accordingly. For more information on the Maryland Sales and Use Tax, please view the tax alert.
