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We are a newly formed management company. Is there a way to pay sales tax under our corporation and not the owners?

Full Question: We are a newly formed management company wanting to pay sales tax for the motel business. We are not the owners but we want to pay under our sales tax number. The property has a contractors' lien so owner is someone else and we just manage and pay our staff from our corporation. Sales tax is the question - is there a way to pay under our corporation and not the owners?

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Answer:

Diane Yetter photoThe determination as to who is the responsible party for collection and remittance of the sales/use occupancy tax will depend on who is actually making the sale. If the management company is running the hotel and handling all financial transactions, then it is likely the management company that will have responsibility for the collection and remittance of the taxes. However, the state may require that the management contract stipulate the responsibility. If the owner is the responsible party of all financial transactions, then it is likely they will be the party required to register for the tax numbers. If you would like additional assistance with this matter, feel free to contact us and we can discuss options.

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