Are Resort Fees Taxable in Colorado?

By Robert Palmer

If you are planning a trip to Colorado and staying at a resort, you may be wondering if the resort fees you pay are taxable. The answer is not a straightforward one, as it depends on the specific fees charged by the resort.

What are Resort Fees

Resort fees are charges that hotels and resorts add to your bill for amenities and services that they offer. These fees can cover things like access to a fitness center or pool, Wi-Fi, parking, and even in-room coffee.

Are Resort Fees Taxable in Colorado

The answer to this question is both yes and no. In general, if a resort fee includes charges for taxable items such as food or beverages, then the fee is considered taxable. However, if the fee only covers non-taxable items such as use of fitness facilities or Wi-Fi, then it is not taxable.

Examples of Taxable Resort Fees

  • Resort fee that includes daily breakfast or any other meals
  • Resort fee that includes alcoholic beverages
  • Resort fee that includes room service charges

If any of these items are included in your resort fee, then the entire fee is considered taxable.

Examples of Non-Taxable Resort Fees

  • Resort fee that only covers access to fitness facilities or pool
  • Resort fee that only covers Wi-Fi access
  • Resort fee that only covers local phone calls or newspaper delivery

If your resort fee only includes non-taxable items such as these, then it is not subject to tax.

The Bottom Line

In summary, whether or not your resort fees are taxable in Colorado depends on the specific items included in the fee. If any taxable items such as food or beverages are included, then the entire fee is subject to tax. However, if the fee only covers non-taxable items like fitness facilities or Wi-Fi access, then it is not taxable.

It’s important to note that not all states have the same tax laws when it comes to resort fees, so be sure to check with each state’s tax regulations before assuming anything.

Takeaway

When planning your next trip to Colorado and staying at a resort, be sure to check which items are included in your resort fee so you know whether or not you’ll need to pay taxes on it. With this information in mind, you can plan and budget accordingly.