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News > Hotel tax exemptions could help AF save millions of dollars
Hotel tax exemptions could help AF save millions of dollars

Posted 8/17/2012 Email story   Print story

    


by Staff Sgt. Clinton Atkins
Air Education and Training Command Public Affairs


8/17/2012 - JOINT BASE SAN ANTONIO-RANDOLPH, Texas (AFNS) -- During a time of increasing Department of Defense budget constraints, the Air Force continuously looks for innovative solutions that save money and positively impacts the mission.

Air Education and Training Command's Financial Management office said Air Force travelers could help save millions of dollars by taking advantage of tax exemptions while using the government traveler's card at hotels in select states.

Those traveling to Alaska, Delaware, Florida, Kansas, Massachusetts, Missouri, New York, Oregon, Pennsylvania, Texas or Wisconsin and staying in off-base lodging are exempt from paying state sales tax for the hotel room. Visit https://smartpay.gsa.gov/about-gsa-smartpay/tax-information/state-response-letter for a list states hyperlinked to more information about the tax exemptions.

Temporary duty budgets were significantly reduced across the command and have increased the use of online meeting capabilities such as Defense Connect Online and video teleconferences to save money. However, there are times when using Web-based capabilities or video teleconferences are not the best methods for conducting the meeting.

"When that's the case and TDYs are required to fulfill the mission, we can do more to stretch our dollars," said Judy Griffis, a financial specialist with AETC.

"The resources we have to accomplish our ... mission are declining," said Col. Charles Fiquett, director of AETC Financial Management. "As a result ... we're looking at every Airman at every level to do whatever they can to save dollars while becoming more efficient. The Cost Conscious Culture initiative is designed to do exactly that -- sustain excellence while responding to declining resources."

While most formal training classes require students to be billeted on installations, that's not always the case.

"In just one month, AETC's TDY to school program paid more than $3,200 in sales taxes on hotel rooms -- that's more than $40,000 a year," Griffis said.

The financial specialist said the cost in hotel taxes doesn't account for frequent travelers. The potential overall savings is even greater when considering this.

For a TDY to San Antonio, there are three taxes that are added on to room rates: 6 percent room state tax, 9 percent room city tax and 1.75 percent county tax. Since the lodging rate for San Antonio is $106 per day, travelers are potentially unnecessarily paying $17.76 in taxes daily for their hotel room. Those kinds of expenditures can add up quickly.

Griffis gave a few tips on how save money when staying in off-base lodging in the states mentioned above:

- When going to a location that offers the state tax exemption, use it.

- Print out the form from the website or, better yet, embed the form into your orders, just like you embed your receipts into your voucher. This will give you access to the form from anywhere.

- Give the tax exempt form to the hotel clerk when you check-in.

- Last but not least, support a cost conscious culture.

Fiquett said it takes a total force effort to get everyone to think deliberately about saving money.



tabComments
12/3/2012 10:59:23 PM ET
My company has come up with a several solutions to electronically process hotel tax exemptions that would save many of these agencies millions of dollars. Please feel free to email me for more information at gezcapital@gmail.com
GE, DC
 
8/22/2012 10:39:46 AM ET
This will save the AF pennies in comparison to other expenditures. 40000 per year is nothing when you are spending billions. The AF wastes more money when people are TDY staying in on-base lodging and use their GTC or CSA cards. Every time we use are cards to transfer money from one command to the other VISA charges up to 2-3 percent on the purchase price. This fee is taken on every swipe of the GTC or CSA card and tons of money is wasted that could be transfered through the AF for minimal costs.
Keith, OK
 
8/20/2012 7:03:22 PM ET
Having the hotel tax exemption automatic when making reservations for official travel when using the GTCCSA would be entirely too easy. Like everything else having to do with official travel it has to be way too complicated require multiple levels of approval ridiculous justifications and leave all the responsibility on the member to make sure it all comes out right.
Brian, FL
 
8/20/2012 8:59:31 AM ET
Or just work for the GSA and don't worry about it.This story makes it sound so easy each time you try to use a tax exempt form it's a different story from the hotel management. You turn the form in at check-in but they can only take off the tax when you check out in person IF the manager happens to be there to approve it.Why not just make it part of using the GOVCC
R, MS
 
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