What are recreation fees and are they taxable

A recreation fee is a charge assessed by a destination resort for use of recreation facilities such as the SHARC in Sunriver or the recreational facility at Black Butte Ranch or Eagle Crest.

This is NOT a “write-off” of each property owner’s assessment for guests’ access to these facilities. The recreation fee can be an exempt-from-tax fee, but it would have to be a separate “after tax” charge to the renter and not included in the regular nightly rate (this exemption only benefits the renter as they pay less tax and does not benefit the owner in any way). Whatever amount of tax is charged to the renter needs to be returned back to the County.

• Option 1: If the recreation fee is charged separately after the tax is calculated, please include this fee in gross rent and take the allowable deduction.
• Option 2: If you choose to include the recreation fee in your nightly rental rate, DO NOT take the recreation fee deduction as it does not apply.