Missouri Code of State Regulations › Title 12 - DEPARTMENT OF REVENUE › Division 10 - Director of Revenue › Chapter 110 - Sales/Use Tax-Exemptions › Section 12 CSR 10-110.220 - Hotels and Motels

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule explains the taxability of rooms,
				  meals and drinks provided by hotels, motels, and similar establishments in
				  which these items are regularly provided to the public. It also covers
				  purchases made by these establishments. The applicable sections are 144.010,
				  144.011, 144.020, 144.021, 144.030 and 144.080, RSMo.
(1) In general, sales or charges for rooms,
				meals or drinks at a place that regularly serves the public are
				taxable.
(2) Definitions. Permanent
				resident-An individual who contracts in advance for a room for a period of
				thirty consecutive days or more and who actually remains a guest for thirty
				consecutive days or more. Businesses do not qualify as permanent
				residents.
(3) Basic Application of
				the Tax.
(A) Charges for rooms, meals, and
				drinks furnished by hotels, restaurants, and other establishments, in which
				rooms, meals, or drinks are regularly served to the public, are taxable. Rooms
				for lodging as well as meeting, banquet and conference rooms are
				taxable.
(B) A permanent resident
				is not subject to tax on their lease or rental payments. A permanent
				reservation for any room is not synonymous with permanent resident.
(C) An educational institution, which
				furnishes room and board to students in pursuit of their educational
				objectives, is not subject to tax on the gross receipts.
(D) Persons engaged in providing rooms are
				subject to tax on the gross receipts from the sale of tangible personal
				property and taxable services:
1. Receipts
				for food or drink are taxable regardless of whether the charge is made per
				meal, daily, weekly, or monthly;
2.
				In room pay-per-view programs or movies are not subject to tax; and
3. All persons engaged in providing rooms
				must collect tax on all charges for telecommunication services, including
				intrastate and interstate calls.
(E) Rooms, meals and drinks are exempt from
				tax if sold to an exempt organization or a representative of that organization
				if the seller has documentation of the exemption. If the representative claims
				the exemption, even if the representative pays with his own funds and is
				reimbursed, and the hotel has a copy of a valid exemption letter issued by the
				Missouri Department of Revenue to the organization, the sale is exempt. An
				agent of the United States government paying with a U.S. government credit card
				is also exempt.
(F) Persons
				providing complimentary meals and drinks or non-reusable tangible personal
				property as part of the room accommodation should not pay tax on the purchases.
				Non-reusable items include soap, shampoo, tissue, and food or confectionery
				items offered to the guests without charge.
(G) The purchaser must pay tax on the
				purchase of reusable items including furniture, curtains, linens, towels,
				pillows, mirrors, radios and televisions for room accommodation.