Occupancy Tax
Occupancy Tax, also known as lodging tax or hotel tax, is a fee that guests pay when staying at hotels, bed and breakfasts, or vacation rentals. It's like a sales tax specifically for temporary lodging. Property managers must understand this concept because they're responsible for collecting these taxes from guests and sending them to local government agencies. This knowledge is particularly important in the hospitality industry because failing to handle these taxes correctly can result in penalties.
Examples in Resumes
Managed Occupancy Tax collection and reporting for a 15-room bed and breakfast
Implemented new system for tracking Lodging Tax payments and submissions
Achieved 100% compliance in Hotel Tax reporting and remittance
Typical job title: "Property Managers"
Also try searching for:
Where to Find Property Managers
Professional Organizations
Online Resources
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where you discover previous occupancy tax calculations were incorrect for the past year?
Expected Answer: A senior manager should discuss creating an audit plan, contacting tax authorities, preparing corrected returns, implementing new verification procedures, and training staff on proper tax calculation methods.
Q: What systems would you put in place to ensure accurate occupancy tax collection and reporting?
Expected Answer: Should explain implementing automated booking systems, regular auditing procedures, staff training programs, and maintaining organized records for different tax jurisdictions.
Mid Level Questions
Q: How do you stay current with changes in local occupancy tax rates and regulations?
Expected Answer: Should mention monitoring local government websites, maintaining relationships with tax offices, participating in industry associations, and subscribing to relevant newsletters.
Q: Explain your process for preparing monthly occupancy tax returns.
Expected Answer: Should describe gathering booking records, calculating total room revenue, applying correct tax rates, maintaining documentation, and ensuring timely submission.
Junior Level Questions
Q: What is occupancy tax and why is it important?
Expected Answer: Should explain that it's a tax charged to guests for overnight stays, collected by the property, and submitted to local authorities, emphasizing the importance of proper collection and reporting.
Q: How do you calculate occupancy tax for a guest's stay?
Expected Answer: Should be able to explain basic calculation: multiplying room rate by number of nights by the local tax percentage, and know where to find current tax rates.
Experience Level Indicators
Junior (0-2 years)
- Basic tax calculation
- Guest billing
- Record keeping
- Use of booking software
Mid (2-5 years)
- Tax reporting and submission
- Staff training on tax collection
- Audit preparation
- Compliance monitoring
Senior (5+ years)
- Multi-property tax management
- Tax law compliance strategy
- Process optimization
- Financial planning and forecasting
Red Flags to Watch For
- No knowledge of local tax rates and regulations
- Poor record-keeping skills
- Lack of attention to detail in financial matters
- No experience with hospitality management software
