Duff on Hospitality Law

On February 5, 2014 the U.S. Environmental Protection Agency launched the “WaterSense H2Otel” challenge, a program encouraging hotels to implement best management practices for reducing their water usage. As part of “WaterSense H2Otel,” the EPA is providing technical assistance using webinars and other forms of outreach including case studies on the “lessons learned” from other hotels’ efforts to reduce water usage. The challenge is designed for any individual hotel with five or more rooms, as well as hotel management groups and chains. EPA explains that WaterSense H2Otel is part of the agency’s broader (multi-sector) “WaterSense” program to promote water-efficient products, services and practices in an effort to address ever increasing demand for water in the U.S.

In September, 2013, Governor Jerry Brown of California signed into law Assembly Bill No. 370, which amends the California Online Privacy Protection Act (CalOPPA) to require that website and mobile app operators disclose whether they honor web browser “Do Not Track” signals. AB 370 took effect on January 1, 2014.

Today's blog is a litigation update on the devastating North Carolina hotel carbon monoxide leak. Please make sure that your business and hotel guests are protected. - Greg

It seems fitting that my first post of 2014 would come from the year's first major industry conference - the Americas Lodging Investment Summit (ALIS) held each January in Los Angeles. As expected, this year's Summit set near record attendance (nearly 2,600 registered attendees) and its attendees were brimming with confidence.

I’m pleased to introduce another guest author from local accounting firm Clark Nuber. Julie Eisenhauer is an audit and accounting principal specializing in the hospitality industry. We're grateful that Julie has offered to share her experience and knowledge with our readers. Welcome, Julie, and thank you for today’s post on this important revenue ruling. – Greg

In a letter sent to major hotel chains, FCC Commissioner Ajit Pai urged hotels to program their telephones to be able to dial 911 without first dialing 9. The motivation behind this initiative is the death of Kari Hunt Dunn, who was stabbed to death at the Baymont Inn in Marshall, Texas this past December, while her daughter unsuccessfully attempted to dial 911 for help. The Baymont Inn’s phone system required all guests to dial 9 before dialing 911. As a result, the daughter was unable to reach emergency services.

For those of you who attended, or even those of you who did not attend, below are the slides from today's sales presentation in Portland. Feel free to contact me if you have any questions.

For those readers and followers unable to attend last month’s AHIA Fall Meeting in Los Angeles, we have posted below our PowerPoint presentation, “On-Line Distribution: Overview, Issues and Tips.” A huge thanks to AHIA for hosting us last month. 

If you have any questions regarding the presentation or distribution generally, please let Ruth or me know.

I'm pleased to introduce guest author Katie Nguyen, a CPA from local accounting firm, Clark Nuber. Katie specializes in state and local taxes for the hospitality industry and has offered to share her experience and knowledge with the Duff on Hospitality readers. Welcome, Katie, and thank you for today's post on some important tax incentives available to Washington's owners and operators. - Greg 

I’d imagine that every hotel and restaurant owner/operator is interested to know how to save money on his or her state taxes (while still following all of the applicable laws and rules, of course). As a former Washington Department of Revenue auditor, I've seen many exemptions, credits, and preferential tax rates go unused – primarily because businesses just didn't know that they existed! This post provides a brief explanation of some Washington tax incentives (both old and new) that the hotel and restaurant industry should be taking full advantage of.

Sales/Use Tax Exemption for Items Imparting Flavor or Supporting Food

The Washington legislature recently enacted a measure providing a retail sales and use tax exemption on purchases by restaurants of the following two types of items:

• • Items used to impart flavor to foods that are completely or substantially consumed by combustion during the cooking process. Such items could include charcoal, charcoal briquettes, wood chips, grape vines, and the like.
  • Items comprised entirely of wood that support the food during the cooking process. Such items could include wood planks, etc.

This exemption expires July 1, 2017.

Commute Trip Reduction Credit

Also recently passed by the state legislation was a bill extending the life of the Commute Trip Reduction B&O tax credit. This credit is a great incentive for those taxpayers who help subsidize the cost of employee public transportation, carpooling, or non-motorized commuting. For each employee, the credit is capped at $60 or 50% of the transportation cost paid (whichever is lower) annually. Be sure to submit your application to the Department of Revenue by January 31, 2014 to get your 2013 credit!

I’m happy to see my quote in the recent Bloomberg article showcasing examples of private equity firms taking advantage of the rising hotel market. It’s an article worth reading!

Blackstone Seeks IPOs as Hotel Sales Climb: Real Estate

“In a nine-inning game, we’re probably in the sixth inning,” said Greg Duff, chairman of the Hospitality, Travel & Tourism practice of Seattle-based law firm Garvey Schubert Barer.“ On many levels and in many different markets in terms of occupancy, we have met or exceeded where we were pre-recession.”