DISCLAIMER: Please note, this is not a legally approved document. We are outlining what our customers are doing in the USA when it comes to the Tax requirements in general. They may be using Mews to achieve some of it and some third-party services to get to some of the remaining requirements.
In Mews, we show each tax separately for the State, County, and Municipal (city/town) levels. This is not related to the way that a property submits its tax returns. On bills and invoices, IRS (Federal tax office) requirement is that the many different taxes aren't grouped in 1 line, e.g. sales tax & occupancy tax shown as 1 combined tax on bills & invoices.
Sales taxes always apply to products, and in many cases to nights.
In most states, properties report sales taxes to the State tax office, even if the tax is at a county or local level.
Occupancy taxes, tourism assessments, and other fees are applied to accommodation by State, Province, District or Municipal law. These taxes are common in locations where tourism is a major contributor to local revenue and they rarely apply to products.
Alcohol and restaurant taxes
Some cities legally require taxes on alcohol, food & beverage, or entertainment. These taxes usually apply only to products, but some states apply them to accommodation instead of or in addition to an occupancy tax.
Transient (long-stay) exemption
Most occupancy taxes, and some sales taxes, apply only to "transients". This is so these taxes are applied only to guests, not renters. The most common exemption is stays over 29-31 nights, but this can range from 14 nights to 180 nights. When the exemption applies, the entire reservation becomes tax-exempt in most states. Taxes are automatically removed from the reservation when it exceeds the long-stay exemption. Taxes aren't automatically removed in legal environments where a signed rental agreement (lease) is needed.
Threshold (nightly rate) exemption
Reservations with a low nightly rate are tax exempt in some legal environments. In these cases, the reservation is automatically tax-exempt in Mews.
In some legal environments, reservations with a high total cost, e.g. $5,000, are also tax-exempt. This is not automated in Mews.
Government & non-profit exemption
Almost all U.S. states provide tax exemptions for specific types of guests. This is usually government officials, diplomats, non-profit (charity) organizations, and schools/universities travelling for work. None of these exemptions are automated in Mews.