From: Papier, Joel (NIH/OD) [E]
Sent: Thursday, June 07, 2007 2:16 PM
To: List ICTRAVELPOC-L
Cc: Stith, Kenneth (NIH/OD) [E]; Howard, Florence (NIH/OD) [E]; Rogerson, Anne (NIH/NIAID) [C]; Sieber, Anna (NIH/OD) [E]
Subject: OFM Transmittal No. 291 - Hotel Lodging Tax Exemptions

Importance: High

All,

In our recent quarterly reviews of the travel card transactions and corresponding travel program requirements, we are finding that our travelers are not consistently taking advantage of the lodging tax exempt status that is offered by various states/cities.   Existing HHS travel policy (HHS Travel Manual, Chapter 5-00-60) states, “The FTR requires traveling employees to exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business.  This includes claiming a federal exemption from payment of state and/or local taxes on lodging wherever this option is available to employees on official business travel.”  NIH travelers are expected to inform themselves about the tax exemption status of each location they travel to, and to take advantage of the lodging tax savings accordingly.  In this regard, GSA offers on its portal page

http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8203&channelId=-16881 a “State Tax Exempt Forms Overview” site where you will be able to reference those states and/or cities that offer a lodging tax exemption form. 

Our reviews show that our travelers frequently conduct official business in locations such as San Francisco, Los Angeles, and San Diego in California; the states of Florida, Pennsylvania, Texas; etc., all locations that are included on the above GSA listing. Yet, for travel to those locations, some travelers are not taking advantage of the potential savings associated w/ this lodging tax.  Therefore, effective immediately for all future trips, NIH is imposing the following policy guidelines:

If official business travel takes place in a location where the lodging property is listed under the GSA State Tax Exempt Forms Overview site, and the traveler’s voucher claim includes domestic lodging tax reimbursement, the traveler must have made every effort to obtain the lodging tax exemption and failing that, include proper justification in the Comments block of the voucher.  Failure to obtain the lodging tax exemption or not having the proper justification in the Comments block of the voucher is a basis for denial by the approving official of the reimbursement for the lodging taxes.    

This policy guidance will be incorporated into NIH MC1500-04.

Please make wide distribution of this guidance to your respective IC travel communities.

Thanks,

Joel