RE:  Increase in the Transient Accommodations Tax Rate

Act 7, relating to the convention center, passed by the Special Session of the 1993 Legislature, increases the transient accommodations tax rate from 5 percent to 6 percent. This increase will take effect on July 1, 1994. Due to the change in the tax rate, the calendar year operators received their 1994 transient accommodations tax booklets containing the appropriate forms reflecting the differences in the tax rates. Period returns for January 1, 1994, to June 30, 1994, reflect the tax rate of 5 percent. Period returns for July 1, 1994, to December 31, 1994, reflect the tax rate of 6 percent. The annual return and reconciliation reflects both tax rates as part of the reconciliation.

For fiscal year operators with fiscal years ending July, 1994, through June, 1995, the Department of Taxation will be mailing out revised tax forms reflecting the 6 percent rate for the periods after July 1, 1994, and an annual return reflecting both tax rates. If you have not received the revised tax forms by July 31, 1994, please write or call any district tax office. The addresses and telephone numbers are listed below.
 
 

/s/
RICHARD F. KAHLE, JR.
Director of Taxation