If a hotel room is reserved in 2024 but the stay occurs in 2025, what state sales tax rate applies?


If lodging is booked in 2024, the hotel receives payment in 2024, and the provider reported the sale in 2024, the 4.45% state sales tax rate applies even if the stay occurs in 2025. However, if lodging is reserved in 2024, but the sale does not occur until 2025 (when the provider receives payment and reports the sale) then the 5% state sales tax rate applies.