Denver Hotel tax

Above is part of a recent invoice for a hotel room for a night in Denver, Colorado.  The total taxes on the room charge come to 16.5%, which is more than the 15% rate of GST in NZ, although less than the rate of VAT in some European countries.

The significant aspect is that it shows the allocation to state, county and city governments.

In NZ all GST charged and collected on accommodation goes straight to the central government, and none to local authorities, even though these often supply the infrastructure and amenities for these visitors.

We suggest a similar sharing of GST revenue by the central government to the local councils; this would relieve the burden on ratepayers.