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About Administering Tax Codes

Taxes on a hospitality product can be a flat amount (for example, $5) or a percentage, and have defined effectivity dates. Taxes are defined on a global basis and are later associated with individual properties. Using charge codes, the calculation of taxes is based on the products associated with an order. When a flat tax is calculated during the Trial Check or Post Check process, the flat amount (for example, $2) is applied to each quantity of the product used. For more information about event checks, see Generating Event Checks.

An occupancy tax is a flat tax assessed for room usage. For example, if a group uses Salon C, then a tax of $100 is levied regardless of the size of the group.

Service charges and taxes are time-dependent; both have a start date and an end date. Service charge and tax date applicability is based on when the function with which the line item is associated occurs. Because multiple functions might be associated with each order and these calculations are done on an order basis, service charges and taxes might be different for different functions on one order.

For example, a function might be held on 12/31/08 and another on 1/1/09, and a new set of taxes and service charges are effective on 01/01/09. If a function spans two days, then the tax applicability date is the first day. For more information about setting up service charges, see Administering Service Charges.

Taxes must be defined before they can be associated with charge codes, service charges, and properties. There are two levels of visibility for taxes:

• All Taxes. This view is used to manage all taxes for a particular property. This view would be used by a property revenue manager at a specific property to manage the taxes for the property with which the user is associated.
• All Taxes Across Properties. This view is used to manage all taxes for all properties in the chain of properties belonging to the organization. This view would be used by a corporate property manager to manage taxes for all properties.