Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 38 - HOTEL OCCUPANCY TAX › Section 38.1 - Imposition and computation of tax

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Tax imposed upon
					 occupants.
An excise tax of 6% of the rent is imposed upon every
					 occupancy by an occupant of a room in a hotel in this Commonwealth. The terms
					 rent and occupancy are defined in §
											38.3 (relating to definitions).
					 The tax shall be collected by the operator of the hotel from the occupant at
					 the time the rent is due, whether on a daily, weekly or biweekly rental period
					 basis. In the absence of evidence to the contrary, it is presumed that the rent
					 is due at the expiration of a rental period.
(b)
Tax not imposed upon permanent
					 residents.
The tax is imposed upon occupants, and not upon permanent
					 residents. Reference shall be made to §
											38.3. A hotel operator may not
					 collect tax upon the rent for a rental period during or at the expiration of
					 which the lessee becomes a permanent resident. If a hotel operator collects tax
					 in advance for a rental period which is or becomes exempt from tax by reason of
					 the lessee's becoming a permanent resident, the operator shall refund the tax
					 so collected to the "permanent resident," and may not report or remit each
					 erroneously collected tax to the Department.
(c)
Taxable rooms and
					 facilities.
The occupancy of a room in a hotel is subject to tax,
					 including but not limited to sleeping rooms, living quarters, housekeeping
					 accomodations, sample rooms, display rooms, function rooms, meeting rooms,
					 banquet and dining rooms, ballrooms, theaters, auditoriums, kitchens, offices,
					 lobby space, garage facilities and commercial establishments. The use or
					 possession, or right to use or possess, furnishings, services and
					 accommodations which accompany the use or possession of a room, is also
					 considered occupancy and is subject to tax. Reference should be made to §
											38.3.
Example.
G rents facilities of the H
						Hotel for a party. In connection therewith, the hotel renders the following
						bill:
Rental of ballroom... $500
Food and soft drinks... 200
Liquor... 100
Party favors... 25
Services of hotel orchestra... 200
Service charge... 200
(1) The service charge item includes the
					 furnishing by the hotel of waiters, kitchen help, barmen, checkroom girls and
					 janitors, and the use of the hotel kitchen, checkroom, bar equipment,
					 furniture, janitorial, facilities, glassware and the like.
(2) Hotel Occupancy Tax is due upon the
					 following items:
Rental of Ballroom...$500.
Service charge... 200.
(3) Although the hotel separately itemizes
					 the service charge for the services of hotel employes and the use of hotel
					 facilities and property other than the ballroom itself, the furnishings,
					 services and accommodations are deemed to accompany the use or possession of
					 the ballroom, and the charge therefor is considered part of the rent. Reference
					 should be made to §
												38.3.
(4) With respect to the food, drinks, other
					 than liquor, and party favors, the provisions of the sales and use tax portion
					 of the TRC are applicable and the hotel is required to collect and remit sales
					 tax upon 6% of the purchase price of these items.
(5) The services of the hotel orchestra are
					 not deemed to accompany the use of the ballroom, since services are available
					 to persons other than lessees of the ballroom and the charge made therefor is
					 not less than that made to persons other than hotel occupants or residents.
					 Reference should be made to §
												38.3.