Why the difference between lodging taxes in the U.S. and US territories and possessions and lodging taxes in foreign countries?
A4 – Many hotels/motels in the U.S. base their charges for lodgings on the maximum allowed for lodging in the prescribed per diem rates and then add lodging taxes to that amount – even though those per diem lodging rates were set to include taxes. As a result the maximum allowed for lodging costs is frequently inadequate. GSA and PDTATAC decided to exclude lodging taxes from the maximum allowed for lodging in their per diem rates, and permit separate reimbursement for lodging taxes. This method will come closer to assuring that most travelers in the U.S. will be properly reimbursed for lodging costs. The reason for the difference in foreign areas is that the State Department has not yet made similar changes to per diem rates for foreign countries and still includes lodging taxes in the maximum allowed for lodging. One unfortunate result of this change is that some of the OCONUS allowances (like TLA for uniformed personnel) may provide better reimbursement for lodging costs in foreign c
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