If an entity is tax exempt, are there any taxes I need to collect from them?

No, if an entity is tax exempt, you do not need to collect sales and lodging taxes. In order for a governmental entity to take advantage of the tax exemption, the purchase must be paid directly to the seller by governmental funds, for example, with a credit card in the name of the exempt governmental agency.  When using a credit card, verification that the purchase is for governmental purposes and will be paid for by the governmental entity is required. Evidence of this must be retained in the seller’s records. A purchase by a government employee using cash or personal check, even if the employee presents a tax exemption number and plans to be reimbursed, is not tax exempt. 

If the entity is charitable or religious, the federal or state tax exemption number must be presented to the seller.  For each sale, the vendor must record this number, date of sale, and name of organization. Keep this record in your permanent files for audit purposes.  In addition, in order to be tax exempt, the organization must be conducting regular religious, charitable, scientific, literary, or educational business. For example, a church that has tax exempt status would have to pay applicable sales and lodging taxes to a hotel if church members are on a ski vacation, even if the lodging services were paid with a church check.

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1. Why does Aspen have a lodging tax and how much is it?
2. How often do I need to remit these taxes?
3. If an entity is tax exempt, are there any taxes I need to collect from them?
4. If I rent my house on a short-term basis, for example, through a vacation website or property management company, am I required to collect and remit sales and lodging taxes?
5. Do I need to do anything else if I rent my home on a short term basis?
6. My lodging establishment charges a civic assess- ment/convenience/booking/ service fee on each booking. Is that subject to sales and lodging tax?