official Gov't tax rate on a condo rental?

Does anyone know what the official Gov't tax rate is on a high season condo rental on the Dutch side? We've been looking at some ads, and the advertised "tax" rate varies anywhere from 5% to 8.5% or 9%.

Some ads list a 10% combined tax and service percentage, some 20% - which makes it even more difficult to figure out how much of that percentage is actually the tax rate. And if you ask, you usually get a "politician" answer trying to skirt the question. Bottom line, no straight answer, no rental.

If it is NOT a timeshare or handled as a timeshare rental then I believe the prevailing tax rate is 5%. Many rentals will also add a service charge so the combined rate could be much higher.

I am basing my statement on what I know to be a reputable rental place currently showing as the tax rate they add on to daily/weekly rentals. "Rates are subject to an additional 5% government tax." This quote is direct from their website. Perhaps it has changed but this is what is currently shown.

High or low season should not be a factor in the tax rate.

Timeshare tax is $50 per week and not based on any percentage.

Tax

Above is a link to a website that also indicates the tax to be 5%. I have no idea about the overall accuracy of the site but it does appear to have the correct tax and timeshare tax rate listed.

For a HOTEL, the official tax rate is 5%, and as JD said, many add an additional 15% for service charge, which I think is BS. Beachside Villas, for instance, does NOT charge any service charge, and that extra 15% can make a HUGE difference. I seem to recall however, that the tax rate for a condo may be different. I have a hazy memory of 8%, although I confess it's been a long time since we've stayed in a condo on the Dutch side.

"A 5% room tax (logeergastenbelasting) is levied from non-resident guests of hotels and other guesthouses, including rentals of vacation villa's and condos."

This is from the site I referenced and it does indicate 5% on villas and condos.

Hey, it also appears to be tied in with a Dutch Caribbean law firm so it must be accurate!!

OK! It appears it's like car rental rates--people seem to charge whatever they want, despite the official tax rate. <img src="http://www.traveltalkonline.com/forums/images/graemlins/Smile.gif" alt="" />

Correct, and some restaurants adding the turnover tax on the bill also.

Unfortunately,the tax rate differs from 5% to 20% as has been mentioned.Hotel rates and condo and villa rates also differ.If you find accommodations that you are happy with and the tax rate is 5%,take it, otherwise move on. If more people did this, the tax rate would become more in line with what it really should be!People often ask what they think people will pay regardless of the correct rate since the government doesn't seem to enforce the rules.

I think yes, actually it is supposed to vary, between a hotel, condo, etc., but as has been said with regard to car rentals--ask them for the TOTAL price, including everything, and if you can live with that price, great. If not, as you said, look elsewhere.

One example we found today...El Zafiro Boutique Hotel on Simpson Bay has a rate on HomeAway of $3,920 for 4 weeks, plus $940.80 "tax" - which works out to 24% - so you know there must be some hefty fees or a big service charge in there. Haven't got a response back on this one yet.

That's just people padding their rates, because they think they can get away with it.

The 5% I quoted you earlier was from a similar size establishment in the same area. 24% is a total rip-off, especially at the place you referred to. I would run and fast!

At El Zafiro, and I suspected, the 24% "tax" is actually a 9% room tax plus a 15% service charge - pretty hefty add-ons. I asked why the room tax was 9%, citing the web site that ruralcarrier provided above, that states "A 5% room tax (logeergastenbelasting) is levied from non-resident guests of hotels and other guesthouses, including rentals of vacation villa's and condos". No response or explanation, and I probably won't get one.

And BTW, I was told that the rental price that we were quoted online for 4 weeks at El Zafiro in January 2017 was wrong, and that the actual rate would be thousands higher. What a way to run a rental operation - good for them if they can get away with it, but needless to say we'll be staying elsewhere.

Huhm, let's see, they want to charge thousands more than the rate online, which INCLUDES an extra 24%. Yeah, right...

I can see that business going downhill fast!

Agreed, like the most recent concerns that have tried to make a go of that location.

And if you have a deposit for a stay it could be lost if they don't make it. Also could leave you searching for a place to stay at the last minute.

SXM??? Wendell