The City Tax function calculates the tax and charges guests based on different sets of rules for each city’s requirement. For a reservation to qualify for the city tax posting, define the Purpose of Stay field on the reservation with a value that has the description field starting with an asterisk (*) on its configuration.
The City Tax is posted to each reservation based on gross or net room revenue amounts, purpose of stay, percentage, and flat amount depending on the city’s regulations. You can set up the City Tax package as Included in Rate, Add to Rate - Separate Line, or Add to Rate - Combined Line.
Purpose of Stay Start (you must configure Purpose of Stay codes with a description matching the value entered if using this option).
Purpose of Stay (you must configure Purpose of Stay codes matching codes entered if using this option).
Predefined amount ranges (you must configure City Tax Ranges using this option).
Net rate amount (rate amount to consider for calculation after taxes are deducted).
Gross rate amount (rate amount to consider for calculation before taxes are deducted.
Percentage of the applicable rate amount.
Number of children (if child rate buckets are configured).
Based on different package attributes such as Included in Rate, Add to Rate - Separate Line, or Add to Rate - Combined Line.
City Tax qualified packages (any package that is configured with a lodging transaction code).
Special Calculation Rule (where the city tax is calculated by the number of people in the room, and posted based on the number of adults in the room).
Purpose of Stay
Configure the Purpose of Stay code in Administration > Reservation Management>Purpose of Stay to activate the City Tax functionality on reservations.
In the Description field, enter the value that will identify the purpose of stay code and activate the generic City Tax package code. Enter the value in the first position of the Purpose of Stay description and insert a single quote at the beginning and at end of the value/description.
For example, if the value is 1 and the description is City Tax Guest, enter ‘1City Tax Guest’ to enable the City Tax calculation. If you enter ‘City Tax Guest1’, the city tax will not calculate.
If not using a specific value for Purpose of Stay to calculate the City Tax, leave this field blank. The default value of an asterisk (‘*’) will be used if this field is blank.
The Purpose of Stay Start can be characters, numbers, or alphabetical letters. If using alphabetical letters, use upper case letters in both the Purpose of Stay Start field and the first position of the Purpose of Stay Description field.
City Tax Ranges
Tax ranges are defined at the property level by selecting Administration>Financial>Rate Management>City Tax Ranges. The City Tax Ranges screen enables you to configure the settings.
0.00-10.0 = 0.00
10.01-25.00=0.50
25.01-50.00=1.00
50.01-100.00=2.00
100.01-150.00=3.00
Each additional 50.00 increased by 1.00
Property (mandatory): Enter or confirm the property name.
Amount From (mandatory). The beginning value of the amount range.
Amount To. The end value of the amount range.
Tax Amount (mandatory). The applicable tax amount required by authorities.
Interval Amount. This defines the intervening amounts, such as, for every 50.00 EUR tax, increase by 1 EUR.
The City Tax function (CITY_TAX) is available within the Posting Attributes Formula field in Package Codes. The function calculates the city tax based on the Purpose of Stay defined on the Additional Details screen on the reservation.
City Tax Package Code Setup
Purpose of Stay Start
Purpose of Stay
Amount Ranges
Room Net Gross
Percentage
Special Calculation Rule (Special Calculation Rule for Dresden)
Child One (Available if Child Rates are active)
Child Two (Available if Child Rates are active)
Child Three (Available if Child Rates are active)
Packages To Include
Enter field information in single quotes, except for the Percentage field.
Parent topic: Rate Management