Making every dollar count through State lodging tax exemptions

  • Published
  • By 8th Fighter Wing Public Affairs
  • 8th Fighter Wing Public Affairs
KUNSAN AIR BASE, Republic of Korea --  Several states exempt uniformed service members and federal government employees from paying state lodging taxes when on official travel orders; however, travelers must know to ask for these exemptions.

Air Force members pay about $4.5 million in lodging taxes each year. Considering today's fiscal challenges coupled with tomorrow's uncertainties, the Air Force is continuously searching for cost-saving initiatives.

In a memorandum to comptrollers across the Air Force, Assistant Secretary for Financial Management Jamie Morin said, "The Vice Chief of Staff has taken a key step forward with the Every Dollar Counts campaign and we have received a huge response from Airmen around the world. One idea that caught my attention pertains to state lodging tax exemptions, which could save millions for reinvestment in mission needs."

Eleven states and territories, including Puerto Rico and the U.S. Virgin Islands, exempt U.S. military members and employees of the United States government from paying state taxes on hotel lodging charges that are directly reimbursable by the U.S. government.

This lodging sales tax exemption applies to both TDY and permanent change of station travel paid using the Government Travel Card. All government travelers are already exempt from lodging tax if their lodging bill is paid directly by the government using a centrally billed account.

Some states and territories require a form and some do not. Puerto Rico, Florida, Massachusetts, New York, Pennsylvania, Texas, and Wisconsin, do require a form which is downloadable from the GSA website. The U.S. Virgin Islands, Alaska, Delaware, Kansas, Missouri, and Oregon do not require any special forms.

All travelers should take advantage of theses tax savings and be aware of these state laws. All travelers should check with their hotel to verify state tax law compliance. If the hotel does not comply, the traveler should consider another hotel. Approving officials should review travel authorizations and vouchers for strict compliance with this requirement. GSA maintains a website and map with state tax information at this URL: https://smartpay.gsa.gov/about-gsa-smartpay/tax-information/state-response-letter.