Typically, the hotel guest can select a movie from a list of titles appearing on the television screen in the room. When a selection is made by the hotel guest, the movie is run electronically. Discussion of Law Massachusetts imposes an excise upon all retail sales of tangible personal property and telecommunications services in Massachusetts by a vendor unless otherwise exempt. The definition of sale includes any transfer of title or possession of tangible personal property.
Telecommunications services resold to hotel guests are also subject to tax.
Where applicable, the excise is imposed at the rate of five percent of the sales price of the property or services sold. A complementary five percent use tax is imposed on tangible personal property and telecommunications services purchased from any vendor for storage, use, or consumption in Massachusetts. Massachusetts also imposes an excise upon the transfer of occupancy of any room or rooms in a bed and breakfast establishment, hotel, lodging house, or motel in Massachusetts by any operator at the rate of five percent of the total amount of rent for each such occupancy. Generally, the entire periodic charge from an operator to its guests, which may include various services or the use of recreational or other facilities, is subject to the room occupancy tax. However, charges for optional recreational, personal or other services which may be purchased by hotel guests for a separate charge, including, but not limited to, secretarial, translation, or babysitting services or fees for the use of golf or other sports facilities are not part of the rent subject to tax.