A state investigation has found that an $18 million renovation at a luxury Boston hotel paid illegally low wages and was rife with violations of tax and labor laws.

Investigators for a state task force on the underground economy found the Boston Marriott Copley Place’s contractors failed to report $1.2 million in wages, deprived the state of nearly $86,000 in taxes, and illegally misclassified 63 employees to avoid spending money on required taxes, insurance, and other benefits.

Host Hotels & Resorts Inc., which owns the Marriott and funded the renovation, has said it was unaware of any potential labor violations until January when the state started investigating.

Joanne Goldstein, the state’s secretary of labor and workforce development, tells The Boston Globe legitimate businesses and taxpayers end up subsidizing the unpaid wages.