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WAC 166 Hotels, motels, boarding houses, rooming houses, resorts, summer camps, trailer camps, etc.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-166 10/29/10 WAC 458-20-166 (Rule 166) explains the taxation of persons who provide lodging and related services to transients for a charge.
The Department amended Rule 166 to recognize recent legislation:
Chapter 15, Laws of 2010 1st Sp. Session  (SSB 6889) - This legislation authorizes the transfer of the King County Convention and Trade Center to a public facilities district; and
Chapter 563, Laws of 2009 (SB 6173) - This legislation replaces the resale certificate with the reseller permit as the means by which to document a wholesale sale.
The Department also updated the rule to:
Recognize the current statutory language regarding when the furnishing of lodging for a continuous period of one month or more is presumed to be a rental or lease of real property;
Remove obsolete language regarding purchases made using US Govt. credit cards.  The rule now refers readers to the Department’s internet site for current information regarding the types of credit cards used by the federal government;
Update language to reflect current statutory terminology regarding self-service laundry facilities; and
Add language to recognize that current law authorizes a tourism promotion area charge (chapter 35.101 RCW).  

  458-20-166   10/28/2005 Hotels, motels, boarding houses, rooming houses, resorts, summer camps, trailer camps, etc.
    02/02/1994 Hotels, motels, boarding houses, rooming houses, resorts, summer camps, trailer camps, etc.Effective 3/5/94
RCW:      
  67.28.180   1991 Lodging Tax Authorized
  67.28.200   1993 Special excise tax authorized-Exemptions, rules and regulations may be established-Collection.
  67.40.090   1995 Lodging tax imposed in King county
  82.04.050   1993 "Sale at retail", "retail sale"
  82.04.065   1997 "Competitive telephone service," "network telephone service," "telephone service," "telephone business."
  82.04.250   1993 Tax on Retailers
  82.04.290   1993 Tax on Selected Business Services, Financial Businesses, or Other Business or Service Activities.
  82.04.390   1961 Exemptions - Amounts derived from sale of real estate
  82.08.020   1992 Retail Sales Tax Imposed
  82.14.030   1989 Sales and use taxes authorized - Additional taxes authorized-Maximum rates
ETA: 3156.2009 2/10/09 Disaster Relief Funds Provided by FEMA and the Red Cross.  This Excise Tax Advisory addresses the Washington retail sales tax treatment of purchases made under financial assistance programs administered by the Federal Emergency Management Administration (FEMA) and the American Red Cross to assist victims of natural disasters.
  91.08.166 7/22/66 LEASE FOR PURPOSES OF RELEASING. Cancelled 1/29/09 This ETA explains that the lease or purchase of tangible personal property, in this case a ship used as a floating hotel, to be used in providing lodging services is subject to retail sales tax. See Black v. State, 67 Wn.2d 97 (1965). A lodging provider's responsibility to pay retail sales tax or use tax on tangible personal property used in providing lodging services is adequately addressed in WAC 458-20-166.
  378.08.166 6/19/70 TRANSIENT GUESTS -- MESSAGE SERVICE CHARGES Cancelled effective 6/30/04, included in rule. This document explains that message service charges by hotels, motels, and similar lodging providers are retail sales. This document is no longer needed was WAC 166 explains that message service charges are retail sales.
INDUSTRY GUIDES:     Lodging Guide
      8/1/05 Personal Home Rentals
    9/22/05 No Sales Tax Due on Purchases Made With American Red Cross Cash Assistance Cards or FEMA Debit Cards issued to Hurricane Victims Cancelled See ETA 3156.2009
SPECIAL NOTICES:      
      Subject Title Reference:
      06/16/1988 Information for Providers of Transient Lodging Notification of Increases in Lodging Taxes
      08/03/1998 Sales Tax Exemption for Foreign Diplomats
      07/03/2002 Changes Relating to the Definition of Rental of real Estate for Hotels and Motels
Boarding Homes     06/07/2005 Nonprofit Boarding Homes
Laundry Laundromat     06/08/2005 Self-service Laundry Facilities
      09/22/2005 No Sales Tax Due on Purchases Made With American Red Cross Cash Assistance Cards or FEMA Debit Cards issued to Hurricane Victims
Telecommunications 07/01/2013 Telephone Tax Changes Effective August 1, 2013
Dance 08/07/2013 Cover Charges for Opportunity to Dance Reclassified until July 1, 2017
Amusement and Recreation Services 08/07/2013 Cover Charges for Opportunity to Dance Reclassified until July 1, 2017
     
       
DIRECTIVE: None    
         
RPM: None      
         
WTD: 4 WTD 75 87-297   B&O TAX -- RETAIL SALES TAX -- BIBLE COLLEGE -- RENTAL OF FACILITIES -- CONFERENCES --LODGING -- MEALS.Income from the rental of conference rooms, lodging, and athletic facilities by Bible college is Service B&O taxable. Cafeteria food sales are subject to Retailing B&O and sales tax when made to non-students.
  7 WTD 119 89-7   CONVENTION AND TRADE CENTER TAX -- HOTELS -- TRANSIENT ROOMS AVAILABLE.Hotels and lodging places must have at least sixty rooms which are used for transient lodging before they are liable for collection of the convention and trade center excise tax in King County. A hotel with 141 rooms is not required to collect the tax where less than 60 rooms are used as transient rentals.
  7 WTD 119 89-7   SALES TAX -- CONVENTION AND TRADE CENTER TAX -- EXEMPTIONS -- VOUCHER PAYMENT. Effective July 1, 1988, purchases of lodging paid for with vouchers provided by the emergency shelter voucher programs are not subject to the retail sales tax or the convention.Form of payment is not controlling in determining whether a hotel has 60 or more rooms available for use as transient lodging.
  8 WTD 427 88-378A   RETAILING B&O & RETAIL SALES TAX -- COST-PLUS TELEPHONE SERVICE AND CHARGES TO HOTEL GUEST--DISALLOWANCE OF "CONDUIT" EXEMPTION. Hotel's provision of telephones, telephone equipment, and access to local and long distance phone networks to guests at cost-plus rates does not qualify for "conduit" exemption/deduction of guest receipts.
  9 WTD 1 88-378   B&O TAX --RETAILING -- RETAIL SALES TAX --EXEMPTION -- HOTEL -- LEASE OF REAL PROPERTY -- MONTHLY OCCUPANCY -- NONTRANSIENT.Where a hotel contracted with an airline for a block of rooms for a period of one month or more, the income from that block of rooms is considered from the rental or lease of real property and exempt from B&O tax.For purposes of computing monthly periods, monthly occupancy can begin on any day of the month.
  9 WTD 165 90-86   USE TAX -- HOTEL RESERVATION SERVICE. The charge made for access to a hotel reservation service is not a charge made for the purchase of tangible personal property, but instead is a purchase of a service and not subject to use tax. Accord: 87-346, 4 WTD 26.
  12 WTD 565 93-011   RETAIL SALES TAX -- RENTAL OF REAL ESTATE -- HOTEL ACCOMMODATIONS -- CONTINUOUS POSSESSION. Where an airline entered into a two year contract to rent hotel rooms, the room rentals qualified as an exempt rental of real estate only if the airline, through employees, continuously occupied the same hotel room for a period in excess of one month.
  14 WTD 225 94-062   RETAIL SALES TAX--LODGING--MEMBERS AND GUESTS. In general, transient lodging and meals provided to the members and guests of an organization are subject to retail sales tax.Under most circumstances, lodges provided for the use by the members and guests of a nonprofit organization do not qualify as private lodging houses or summer camps and similar organizations under Rule 166.
  15 WTD 15 94-113   HOTEL/MOTEL TAX--LICENSE TO USE REAL ESTATE--TRANSIENT--AIRPORT TIE-DOWN FEES--BOAT MOORAGE FEES. Transient boat moorage fees and transient airport tie-downs are not subject to the special hotel/motel tax because they are not received for the "furnishing of lodging".
  17 WTD 89 97-198   RETAIL SALES TAX -- B&O TAX -- HOTEL-MOTEL TAX -- TIMESHARE -- FEE OWNERSHIP. Charges by a timeshare operator are subject to retail sales tax, B&O tax, and hotel-motel tax in situations where the members do not acquire the attributes of ownership in the real estate.
  17 WTD 266 98-075   HOTEL/MOTEL TAX -- RECREATIONAL VEHICLE PARK -- MEMBERSHIPS -- OPEN TO THE PUBLIC.Sales of memberships in a recreational vehicle park are subject to the hotel/motel tax.Such sales are charges for the rental of space to transients for parking house trailers, campers, recreational vehicles, mobile homes, tents, etc.Such parks are "open to the public" as that term is used in Rule 166.Charges for lodging are subject to tax even though they may be identified or characterized as membership fees or dues.
  17 WTD 379 98-072   B&O TAX -- RETAIL SALE -- NETWORK TELEPHONE SERVICES -- COMMISSIONS -- PAY-PHONE.Where the owner of pay telephone equipment received a commission from the long distance service provider for each call originating from its equipment, the income was taxable under the service and other activities tax classification.
  19 WTD 398 99-109   CONVENTION AND TRADE CENTER TAX - INCIDENTAL CHARGES - ROLLAWAY BEDS - REFRIGERATORS.The intent of the convention and trade center tax is to tax those articles that are primary to the room rental, such as rollaway beds and refrigerators. Such items do not fit within the definition of incidental charges.
  23 WTD 198 04-0022E   B&O TAX - EXEMPTIONS -- LEASE VS. LICENSE TO USE REAL PROPERTY - ASSISTED LIVING - BOARDING HOMES -- 30 DAY PRESUMPTION.The statutory presumption that occupancy of real property for a continuous period of one month or more constitutes a lease of real property does not apply to assisted living facilities.
  23 WTD 198 04-0022E   B&O TAX -EXEMPTIONS -- LEASE VS. LICENSE TO USE REAL PROPERTY - ASSISTED LIVING -- BOARDING HOMES -- EXCLUSIVE CONTROL - PRIMARY PURPOSE.Although some indicia of a lease are present in the assisted living context, the primary purpose of the taxpayer's assisted living facilities is to provide daily living assistance and care to the aged or infirm.Accordingly, the rental of real estate exemption does not apply.
  23 WTD 198 04-0022E   CONGREGATE CARE CASES OVERRULED. In published determinations, we previously held that two congregate care facilities were entitled to the rental of real estate exemption for amounts attributable to lodging if they could segregate with reasonable accuracy the amounts received from real estate rental from amounts received for personal and professional services.Det. No. 90-252, 10 WTD 41 (1990); Det. No. 90-297, 10 WTD 87 (1990).We hereby overrule these determinations to the extent those determinations stand for the proposition that assisted living facilities can bifurcate income and treat part of the income as subject to the rental of real estate exemption.
  23 WTD 206 04-0023E   SERVICE B&O TAX - B&O TAX EXEMPTION -- LEASE VS. LICENSE TO USE REAL PROPERTY - ASSISTED LIVING - 30 DAY PRESUMPTION.The statutory presumption that occupancy of real property for a continuous period of one month or more constitutes a lease of real property does not apply to assisted living facilities.
  23 WTD 206 04-0023E   SERVICE B&O TAX -B&O TAX EXEMPTION -- LEASE VS. LICENSE TO USE REAL PROPERTY - ASSISTED LIVING - EXCLUSIVE CONTROL VS. RIGHT TO USE - PRIMARY PURPOSE.Although some indicia of a lease are present in the assisted living context, the primary purpose of the taxpayer's assisted living facilities is to provide daily living assistance and care to the aged.Accordingly, the rental of real estate exemption does not apply.
  23 WTD 206 04-0023E   CONGREGATE CARE CASES OVERRULED.In published determinations, we previously held that two congregate care facilities were entitled to the rental of real estate exemption for amounts attributable to lodging if they could segregate with reasonable accuracy the amounts received from real estate rental from amounts received for personal and professional services.Det. No. 90-252, 10 WTD 41 (1990); Det. No. 90-297, 10 WTD 87 (1990).We hereby overrule these determinations to the extent those determinations stand for the proposition that assisted living facilities can bifurcate income and treat part of the income as subject to the rental of real estate exemption.
  32 WTD 69 12-0189 04/04/2013 RCW 82.04.050(2)(f) – B&O TAX – EXEMPTION -- RENTAL OF REAL ESTATE V. LICENSE TO USE REAL PROPERTY-- NON-CONTINUOUS OCCUPANCY – HOTEL ROOMS RENTED BY AIRLINES. An airline’s long-term contracts with hotels for rooms for its off-duty flight personnel were nontaxable non-transient rentals of real estate, as opposed to retail sales taxable licenses to use real property, even though the hotels did not provide Taxpayer with the same rooms for the entire 30-day period.
         
OTHER: