What FedRooms Can Waive: The Difference Between an Add-On Fee and a Tax
Understanding the difference between add-on fees and taxes.
Reviewing your hotel bill can be tricky with taxes and fees varying by hotel, city, and state. A traveler recently came to us with the question as to what the difference is between fees versus taxes that they can be charged by a hotel.
When you book the FedRooms rate, you are exempt from add-on fees such as destination fees and cleaning fees. President Biden and the Federal Trade Commission are exploring ways to crack down on hotel’s adding various fees to room rates, saying this practice is unfair and likely unlawful. FedRooms is fee-free, meaning no service add-on fees, resort fees, or early check-out fees will be applied to your stay. You can rest assured you won’t have to face the headache of a higher bill than you anticipated at check out.
FedRooms cannot waive taxes. Certain cities are permitted, and do charge a 2% Tourism Public Improvement District (PID) tax on all hotel room rates. This fee is mandatory and would not be removed even if the state exempts state sales tax.
Refer to the SmartPay FAQ webpage for more information.