I’m no math whiz but even I can see if you bake it in, it starts to pyramid. So if my rate is 100 per night and I charge the guest 115 to cover the tax, then not only I am getting reported for the 115, I’m also responsible for paying tax on the 115 instead of 100. Oh and I am charged their commission on the tax too. I just get it in cash.
I think sometimes people just think it is the cost of doing business but how many of them realize every little thing starts cutting into your profits. Reminds me of the old I Love Lucy show where Lucy and Ethel bottle their own salad dressing and forget about all the production costs, and in the end end up delivering all the salad dressing orders door to door. And Ricky calculates they lost money on every bottle instead of making a windfall.