We are in this together

We have created a one-page informational fact sheet that is helpful.  It is downloadable on the setup information page under Resources.

The PTDD was formed by utilizing the Maine State Development District Law.  Based on the law, the properties within the district will be assessed.  Assessed properties are non-seasonal lodging properties within the City of Portland with more than 40 rooms.  All combined assessments will make up the marketing budget for the district. 

The ability to form the district is through the Maine State Development District Law.  It’s the same concept as the Portland Downtown District.  The law requires a formula to establish an assessment amount for each property.      

The formula used begins with your hotel classification, as defined by STR.  It’s then based on 50% occupancy x the US average ADR for that classification.  We did this so there would be no risk to a property should there be an economic downturn.   

In most cases, it may be due to an incorrect STR classification.   Please get in touch with Lynn Tillotson for direction.  

No, the city will provide one assessment invoice for each property. For an entire year, there will be two dates on the invoice to split the invoice into two payments.  In our first year of formation, the assessment will be 1/2* and due in the spring of 2024.  

* Lynn Tillotson shared the estimated 1/2 assessment amount for FY24 for each property.

Hotels have the opportunity to pass on fees to their guests.  Passing a 1.5% Dest. Mkt. Fee to booked lodging stays, in most cases, will raise enough funds to cover your city assessment. 

Applying the fee to the guest folio beginning November 1, 2023, will keep the district hotels in alignment with the added benefit or collection of revenues to offset the financial liability to the hotel in March 2024.

Yes, all fees related to gross room revenue should be taxed at the 9% lodging tax rate.   

Hotels are being encouraged to apply lodging tax to the fee.  The state Lodging Tax code dictates to apply lodging tax to  "... any service charge or other charge or amount required to be paid as a condition for occupancy, valued in money, whether received in money or otherwise and whether received by the owner, occupant, manager or operator of the living quarters, by a room remarketer, by a person that operates a transient rental platform or by another person on behalf of any of those persons..."

The fee is not a tax; therefore, it is not exempt from taxes.  However, the hotel may adopt a policy to apply exemptions as they wish.  Hotels must remember that the assessment invoice will still be due and payable at the rate assessed to the property, regardless of the amount of the revenue collected.

Add the total of the fee collection to your gross sales line.  Be sure to have backup for the breakdown in your internal documents. 

The board of directors and a few participating hotels have discussed and agreed upon possible exemptions to charging the Destination Marketing Fee (DMF) 

• Transient:  All transient reservations will be subject to the Destination Marketing Fee (DMF)
• Group: All new group contracts will include the DMF.  For any existing contracts, the hotel will attempt to amend the contract to add the DMF; it is the discretion of the hotel to waive the DMF if the client pushes back. 
• Government Rates: the DMF is charged.  However, the tax on the DMF is exempt. 
• Contract: Ex: airlines = same as Group 
• Long-term: Any stay over 28 days will be exempt from the DMF 

At the conclusion of each month, your night audit team will reconcile the state lodging tax.  At that time, reconcile your Dest. Mkt. Fee collections.  

Remittance of the destination marketing fee will be net of taxes.  You will send your tax collections to the State of Maine and your PTDD collections to an accountant the district has contracted with.  

Send collections to:

PTDD c/o Marcum
1 Canal Plaza, 4th Floor
Portland, Maine 04101

No, Marcum will have copies of each property's invoice.  Marcum will keep track of all hotel collections towards the assessments.  Marcum will also remit the funds to cover the assessment directly to the city on your behalf.  Receipts of payment will be sent to properties for your records. 

Yes. Based on the low assessment formula, we expect properties to collect more based on higher average occupancy and ADR in the Portland market.  All collections will go to the accountant monthly.  Funds over and above the assessment will be tracked separately, and all funds will be used to enhance the marketing plan and needs of the district and the payers.  Total collections* will have complete transparency and board oversight. 

* Individual property remittance will be confidential.  

The funds from all Districts across the U.S. are used to market the destination and increase year-round occupancy.  The funds must benefit the payers; therefore, all funds will have board oversight and hotel input.  The board will evaluate our destination's needs by creating a long-term strategic plan and a first-year marketing plan.  

The board of directors will be established and needed to do some heavy lifting.  A lot of work needs to be done to get things started.  However, that does not mean that properties not having seats on the board won't be able to share their thoughts.  Communication will happen regularly and will be posted here for review.  

It's a very simple answer:

Guest:  "What is this fee for?"

Front Desk:  "It's for tourism promotion and servicing our visitors" 

It is up to you, but there are options: 

“Room rates are subject to applicable taxes and fees.”   

“Sleeping room rates quoted exclude applicable state taxes and fees.” 

“Room rates are subject to applicable 1.5% destination marketing fee and the 9% state lodging tax.”  (This one is very specific, so it doesn’t leave it open-ended if you have additional fees like resort fees, parking fees, early check-in fees, etc.)