The Court of Appeals affirmed the Superior Court and filed a published opinion regarding the application of sales tax when a hotel purchases furnishings and amenities. The Court held that rather than selling such items separately, Mayflower incorporates the costs of these items into the rate it charges for each room. It therefore put these items to an 'intervening use' when it provides those items in its rooms for their guests use.

The court held that Mayflower must pay sales tax each time it purchases furnishings or amenities provided that the hotel uses or consumes the furnishings or amenities in the course of renting rooms to its guests. So long as this proviso is met, it does not matter whether the hotel 'consumes' the item (e.g., coffee or shampoo), or 'uses' and then resells the item (e.g., a sofa or bed).

The case affirmed the Department of Revenue's tax treatment with regard to these items. The Department will continue to follow Washington Administrative Code (WAC) 458-20-166 in this regard.

For purposes of this tax application:

• "Furnishings" contemplated in the decision include: alarm clock radios, armoires, ashtrays, baby cribs, bed bolts, bed frames, bedspreads, blankets, carpet, carpet pads, casters, chairs, desks, draperies, drapes, dressers, hangers, headboards, ice buckets, ironing boards, irons, lamp shades, luggage racks, mattresses, mirrors, pictures, pillows, signs, roll-a-ways, shower curtains, signage, sofas, standing lamps, table lamps, tables, televisions, upholstery, and wastebaskets.
• "Amenities" contemplated in the decision include: bath mats, body lotion, coffee, conditioner, cotton balls, cream and sugar, electric light bulbs, glassware, guest directories, guest keys, guest questionnaires, hairnets, hangers, ironing board pads, key folders, tissue dispensers, laundry bags, laundry slips, magazines, matches, mattress pads, notepads, paper coasters, pens, pillow cases, postcards, cotton-tip swabs, razors, robes, sewing kits, shampoo, sheets, shoe mitts, shower curtains, slippers, soap, stationery, tissue paper, toilet paper, toothbrushes, towels, tub mats, wash cloths, and wastebasket liners.