Travel Industry Association of Kansas Transient Guest Tax February - PDF document

Travel Industry Association of Kansas Transient Guest Tax February 9, 2011 Introductions: Steven Brunkan Lynn Robinson What is the Transient Guest Tax? Tax on bedroom rentals paid by guests A local tax, used to finance city and county tourism activities Currently, 90 cities and 33 counties currently levy the tax Who has to pay? Any person renting a bedroom (sleeping accommodations) for less than 28 days What is not subject to the tax? Room rentals for greater than 28 days Federal Government (direct purchases) are exempt What Businesses have to collect the tax? Businesses holding themselves out to the public And having more than 2 bedrooms furnished for rent by guests All hotels, motels, bed & breakfasts and accommodation brokers Includes hunting lodges, does not include Dept of Wildlife & Park cabins, RV parks Who can have a transient guest tax Statute does set some requirements If a county has a tax, the city can not If a city has a tax, the county can have one for the rest of the county, but not for that city Have had cities and counties working together Where city had tax and county wanted one County enacts higher tax rate, city rescinds their tax Interlocal agreement – city tax returned to city, county keeps remainder How can the money be used For Convention and tourism promotion Local gov’t has a lot of leeway. See AG’s opinions on usage How to Enact the Tax Pass City ordinance or County resolution, subject to protest period (vote can be held as well) Notify the department of the tax, includes sending copy of ordinance or resolution Starts on the 1st day of a calendar quarter, 30 days after notification to department Department notifies all businesses (from a list received from city/county) Non-uniformity of statutes Can opt-out of rate limit Can’t change any aspects of the statute dealing with the administration of the tax Processing Returns are mailed to the businesses Due back in the department, with remittance on the 25th day of the following month (Jan receipts to department Feb 25th) Upon receipt, returns are date validated – effects distribution. Returns are checked, money deposited, data entered and posted into processing system Non-filers identified and mailed non-filer notice Partial payments recognized and letter mailed requesting payment Both will result in going to Collection Area if not paid Approximately 800 returns processed monthly Distribution Transient Guest is a local tax, all money returned to the city or county Except for a 2% processing fee that is retained by the State Money distributed quarterly Distributed 30 days after end of calendar year quarter End of January, April, July, October Consists of data received during prior quarter with a validation date within that quarter. Returns received late, or if not validated until 1st of next month, falls to next distribution Department develops the distribution, hands off amounts to State Treasurer State Treasurer does the deposit/cut checks, sends e-mail notice, posts advice statement on web Tax Entity Reports available to city and county officials

Travel Industry Association of Kansas Transient Guest Tax February 9, 2011 Reports and Confidentiality Restraints Department can not divulge individual taxpayer data Exception is to city or county with the tax Tourism offices are not city/county employees and can not have individual taxpayer data City and County Tax Entity Reports Monthly reports by taxpayer of returns filed and dollar amount to be distributed Confidential to cities and counties with a tax, official usage only Statistical reporting Monthly and quarterly reports of tax distributed by city and county, with number of filers. Some may not be published due to lack of 5 reporting businesses On our web site, under Statistics Miscellaneous Sales tax Connection Rooms are subject to state and local sales tax, must have 4 bedrooms vs. more than 2 Local tax is distributed back to cities and counties There are more exemptions – all government, schools, churches Some cross checking occurs in processing between the two taxes Room Rentals by corporations Rent block of rooms for several months Different employees use the rooms No Transient Guest tax due as room rented for more than 28 days. What if long term stay, but they check out for one day in the middle of the stay (and don’t pay for that day) Count # of days stayed, if less than 28 days tax is due Restart count Contacts: Steven Brunkan Phone: 785-291-3580 Fax: 785-296-7928 E-mail: steven.brunkan@kdor.ks.gov Lynn Robinson: Phone: 785-296-3082 Fax: 785-296-7928 E-mail: lynn.robinson@kdor.ks.gov Office of Policy and Research Kansas Department of Revenue Docking State Office Bldg – 2nd floor 915 SW Harrison Street Topeka KS 66612 Statute: K.S.A. 12-1692 to 12-1699 and parts of K.S.A 12-16,101 to 12-16,113 Web Sites : Kansas Department of Revenue: http://www.ksrevenue.org/ (for transient guest reports, click on Statistics) State Treasurer: Bank Advice Statements and historical data: http://www.kansasstatetreasurer.com/prodweb/financial_services Publication: Business Taxes for Motel, Hotels & Restaurants (KS-1540)

Travel Industry Association of Kansas Transient Guest Tax February 9, 2011 Overview What is it, who pays, who collects it Who can have the tax and how to enact in your city or county Currently 90 Cities and 33 Counties with the tax Use of the Tax Proceeds Convention and Tourism Promotion Broad discretion by city and county ( See AG opinions) Processing Who collects: Hotel, Motel, B&B duties Dept of Revenue processes Distributions Quarterly – End of January, April, July, October Consists of prior calendar quarter’s returns State Treasurer actually makes deposit, writes checks Advice statement on web site Reports and Confidentiality Restraints Tax Entity to Cities and Counties – confidential data Statistical Reporting – distributions on our web site Miscellaneous Sales tax Connection Room Rentals by Corporations Questions? Contacts: Steven Brunkan Phone: 785-291-3580 Fax: 785-296-7928 E-mail: steven.brunkan@kdor.ks.gov Lynn Robinson Phone: 785-296-3082 Fax: 785-296-7928 E-mail: lynn.robinson@kdor.ks.gov Office of Policy and Research Kansas Department of Revenue Docking State Office Bldg – 2nd floor 915 SW Harrison Street Topeka KS 66612 Statute: K.S.A. 12-1692 to 12-1699 and K.S.A 12-16,100 to 12-16,101 and K.S.A. 12-16,113 Web Sites: Kansas Department of Revenue: http://www.ksrevenue.org/ (for transient guest reports, click on Statistics) State Treasurer: Bank Advice Statements and historical data: http://www.kansasstatetreasurer.com/prodweb/financial_services Publication: Business Taxes for Motel, Hotels & Restaurants (KS-1540)