Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 65 - Sales and Use Tax › Subchapter 19 - Specific Applications and Examples › Part 15 - "H" › Section 710:65-19-143 - Hotels, motels, apartments, etc

Current through Vol. 41, No. 20, July 1, 2024
(a)
				  The gross receipts from the furnishing of rooms, except meeting rooms, by a
				  hotel, apartment-hotel, cottage camp, or lodging house open to the public is
				  subject to sales tax without regard to the length of guest stay. Sales tax does
				  not apply to rental agreements which are governed by the Oklahoma Residential
				  Landlord and Tenant Act [41 O.S. §§
										101 et
				  seq.].
(b) The revenue received
				  from the forfeiture of a deposit is not revenue arising from the furnishing of
				  a room and is therefore not subject to sales tax. However, revenue which is
				  derived from a guaranteed room is subject to sales tax, even if the guest did
				  not occupy the room.
(c) The gross
				  proceeds received by hotels or other persons for local telephone calls are
				  considered a part of the service of furnishing rooms and are, therefore,
				  taxable. No deduction will be allowed for any expense in connection with such
				  service such as switchboard rental, trunk line rental, etc.
(d) Supplies such as toilet tissue, soap,
				  shoeshine cloths, clothes bags, matches, facial tissue, and other items
				  available for guests' use are subject to sales or use tax at the time of
				  purchase by the hotel or motel. Linens, furniture, pool equipment and supplies,
				  and similar items are subject to sales or use tax at the time purchased by the
				  hotel or motel.
(e) Sales tax is
				  not due on food or drinks that are provided as a part of a packaged room rate
				  by hotel or motel operators if the furnishing of the room is subject to tax
				  under Section
				  1354
				  of Title 68 and if no separate charge is made for the food or drinks. Such food
				  or drinks are considered to be sold at retail as part of the total charge for
				  the room.
(f) With the exception
				  of subsection (e) hotel or motel operators who are also vendors of meals are
				  required to remit sales tax on the "sales value" of inventory withdrawn from
				  stock that is used in providing complimentary meals to its customers. The
				  proper sales tax basis to be used for sales of food and beverages for related
				  services, and for various "complimentary" offerings, both in the context of
				  rooms and of other services, is explained in more detail in OAC
				  710:65-1-2 and
				  710:65-19-109.
(g) A
"mini-bar"
means a closed container, either refrigerated or non-refrigerated, with access
				  to the interior limited to a key, magnetic card, or similar device and
				  controlled at all times by the holder of the license.
(h) A hotel beverage license shall authorize
				  the holder to sell or serve alcoholic beverages in 50 milliliter spirits, 187
				  milliliter wine and 12 ounce malt beverage containers which are distributed
				  from a hotel room mini-bar. The total retail value of the sale of alcoholic
				  beverages by the license-holder is subject to sales tax, pursuant to
OAC
710:20-5-4.
Amended at 11 Ok Reg
					 3521, eff 6-26-94; Amended at 15 Ok Reg 2827, eff 6-25-98; Amended at 16 Ok Reg
					 2653, eff 6-25-99; Amended at 18 Ok Reg 2823, eff 6-25-01; Amended at 24 Ok Reg
					 2397, eff 6-25-07