In some states and U.S. territories (e.g. Puerto Rico), federal travelers on official business are exempt from paying certain lodging taxes when using a DoD Government Travel Charge Card (GTCC). You can find out if the state where you are traveling is tax exempt on the Per Diem screen in the Defense Travel System (DTS). When making a reservation, just look for a notification under each TDY location and follow the link to GSA Smartpay for any required Tax Exempt Forms prior to your trip. You may also see a Pre-Audit for hotels in locations that require a tax-exempt form.
Keep in mind:
- You must be on official travel and pay with your Government Travel Charge Card. Individual travelers must use their Individually Billed Account (IBA) to qualify for the state sales tax exemption if there is one. Employment with the federal government doesn’t exempt you from lodging tax on personal travel.
- With group bookings for which the hotel payment is a direct bill or through a Centrally Billed Account (CBA), the state sales tax is exempt in all states and territories.
- You may need to fill out a lodging tax exemption form (depending on the state/territory) and present it at check-in. Tax Exempt Forms are available at all DoD Preferred and FedRooms hotels, however, you should check the requirements before you leave on your trip as some forms require a supervisor’s signature.
- Some local taxes may still apply. In some instances, tax exemptions apply only to state taxes and local taxes may still need to be paid.
For more information on state sales tax exemptions, watch the video below or check out answers to frequently asked questions. For tax forms and other resources, visit smartpay.gsa.gov.