Lodging Sales Tax Exemption Changes

The University of Utah is a tax exempt entity, and is exempt from taxes on IN STATE lodging expenses paid DIRECTLY to the hotel or lodging property.

In July of 2011, however, the state implemented a change to the process of lodging tax making it necessary for the University to pay lodging taxes up front, and request reimbursement for the tax payments after the stay.

NOTE: The University is only tax exempt as it relates to lodging expenses when we PAY THE HOTEL DIRECTLY. When University travelers pay for hotel stays on their personal credit cards, we will not be eligible for reimbursement from the state. University travelers will continue to be reimbursed for both the cost of their hotel room AND the tax when reimbursement requests are submitted.

When your department requires reimbursement after paying the lodging tax, send the following items to the Tax Services & Payroll Accounting office.

  1. A copy of the hotel receipt showing the amount of lodging tax paid.
  2. The Chartfield to which you would like the refund applied – which should be the same Chartfield charged for the tax.
  3. Your name and contact information for any questions we might have.

The refund requests are sent in quarterly to the State Department of Revenue, and you can expect your reimbursement within two months of submitting. The reimbursements will be credited back to the Chartfield you originally submitted, and you will receive an email notification when they come in.

Subscribe to the Travel Tidbits E-mail ListSubscribe to the Travel Tidbits E-mail List

2 Responses to Lodging Sales Tax Exemption Changes

  1. Leslie says:

    Question is: Is it mandatory to submit for a lodging tax reimbursement when pd directly to the vendor from the U…or is this optional?

    Thanks,
    Leslie
    1-6137

    • Kori DeHaan says:

      There is not a mandate to request tax reimbursement. Bob Schirmer (Tax Manager) is indicating that the process runs smoothly, however, so he encourages departments to send the documentation.