City and
TAX GUIDE
Topic No. 52
LODGER'S TAX
Lodger's tax returns are required to be filed by the 20th day of the month succeeding the month of sale.
The entire amount charged to any person for lodging (defined as a room or rooms, sleeping accommodations in a hotel, apartment hotel, lodging house, motor house, motor hotel, guest house, guest ranch, resort, mobile home, auto camp, trailer court or park), who has not resided for thirty (30) consecutive days nor entered into a written agreement for occupancy of such lodging for a period of at least thirty (30) consecutive days is taxable at the rate of 10.75%.
Lodger's tax does not apply to meeting rooms, display rooms, and banquet facilities where a specific charge is made for such facilities.
EXEMPTIONS:
The DRMC provides an exemption for the sale of lodging to a person who continuously occupies or enters into a written agreement for occupancy of a room or rooms for a period of at least thirty (30) days. The exemption applies to persons or organizations that contract with a lodging facility to rent one or more rooms for a period of 30 days or more even though the individuals using the facility or the rooms may not be the same each day.
An exemption is also provided on
sales to governmental, religious, and charitable organizations. In order for
the exemption to apply, all of the following conditions must be met:
1. The
sale must be made directly to the exempt entity as evidenced by billing made
directly to the organization and not to an employee of the organization;
2. The
exempt organization cannot receive any reimbursement for such lodging, such as
payment of a registration fee by the registrant that includes lodging; and
3. Payment must be received
directly from the exempt entity as evidenced by payment by organization check,
or the issuance of an organization’s purchase order. The transaction WILL NOT
be considered exempt if an employee or member pays with a personal credit card,
cash, or personal check, even though the employee or member may later be
reimbursed by the organization. The use of a government issued credit card does
not alter these rules, because such cards are normally issued as a convenience
to the employee, and the employee is responsible for payment of the bill.
In-room movie charges, local telephone charges, and
intrastate long distance charges are subject to sales tax at 3.62%. Interstate
long distance charges are not subject to
Guest supplies such as soap, shampoo, towels, etc., and room furnishings are not sold as part of the lodging transaction and are subject to sales/use tax when purchased by the hotel as they are used and consumed by the hotel in providing its lodging services.
EXAMPLES
1. Martha works for the Department of Defense. She pays for most of her travel expenses with her government issued credit card. Even though the card bears both Martha's name and the name of the exempt entity, Martha is responsible for paying the monthly credit card bill. Martha paid for her room at the East Motor Inn with said credit card. Although she will be reimbursed for most of her expenses by the government, the transaction is still subject to taxation because the transaction was between Martha, an individual, and the hotel. The sale was not directly to the government.
2. The XYZ Church is having its annual
convention in
·
DRMC Sections 53-166 through 53-220. Lodger's
Tax.
THE ABOVE INFORMATION IS A
SUMMARY IN LAYMAN'S TERMS OF THE RELEVANT
Revised 12/06