The law states a person is a nontransient when the rental period is one month or more, or they remain in continuous occupancy for 30 days in a row or more when the rental period does not start on the first of the month.
A guest, resident, or other occupant who purchases lodging is a nontransient on the 30th day, even if they change rooms or lodging units during the continuous thirty-day period.
An occupant who contracts in advance and remains in continuous occupancy for the initial 30 days is considered a nontransient from the time they start occupying the unit. The business does not need to charge tax on charges for nontransient lodging. Additionally, income from nontransient rentals is exempt from B&O tax.
For more information, see our Tax Topic article titled Rental vs. License to Use Real Estate.