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Review tax exemptions and requirements that might apply prior to your next domestic trip

Understanding Lodging Taxes for Your Next FedRooms Stay

FedRooms travelers may have come across an unexpected charge for a state sales tax on a past hotel stay. Prior to booking your next trip, it is important to understand that sales tax policies differ from state to state.

Tax charges will depend on the location of your hotel, in addition to the charge card that you use.

This General Services Administration (GSA) SmartPay program map highlights states and territories that currently exempt government travelers from state sales tax for their hotel stays when they use their Government travel card.

When you stay in these states, you’re not charged state sales tax when you pay with an Individually Billed Account (IBA) travel card. An IBA is a travel card authorized by your agency and issued in your name specifically for use when you’re on official travel. IBAs can be identified by the sixth number on the card.

Even in tax exempt states, you may still be charged for some local taxes. These local taxes are usually listed on your hotel invoice as lodging or room taxes.

In addition to paying with your travel card, certain states also require you to complete a tax exemption form. FedRooms hotels may be able to provide the form; however, you should check the requirements before you leave on your trip as some forms require your supervisor’s signature prior to check-in.

If you’re using a Centrally Billed Account (CBA), which is a government travel card held by an organization, state sales taxes are exempt in all states and territories. This typically only applies to direct-billed group bookings. If you request a state sales tax exemption and the hotel refuses, or if you see taxes on your bill at checkout, first double check that the state truly is tax exempt. Then, confirm that the charges aren’t local taxes. Finally, confirm with the hotel that you have completed the forms required by that state for tax exempt status as each state has different requirements.

Please review tax exemptions and requirements that might apply prior to your next domestic trip. If you’re still in doubt, or if you want to learn more, check out these GSA SmartPay resources.