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RULE §3.161Definitions, Exemptions, and Exemption Certificate

  (1) Dormitories and other housing facilities owned or leased and operated by institutions of higher education as defined in subsection (a)(2) of this section and used to provide sleeping accommodations for persons engaged in educational programs or activities at the institutions are excluded from the definition of a hotel in Tax Code, §156.001, and their rentals are not subject to tax. Hotels owned or leased and operated by institutions of higher education, however, are not excluded and their rentals are subject to tax.

  (2) Private clubs as defined in subsection (a)(5) of this section do not collect tax on rentals of rooms to members. Tax is due, however, on the rental of rooms to nonmembers. An organization is not a private club and must collect hotel occupancy tax on rentals of rooms to members and nonmembers if the organization:

    (A) does not provide members entertainment, recreation, sport, dining, social facilities, or other significant club amenity in addition to lodging;

    (B) does not assess membership dues, initiation fees and other charges, assessments, and fees for special privileges or status not available to the general public; and

    (C) the rental of a room is not insignificant to the purpose or purposes of the organization.

Source Note: The provisions of this §3.161 adopted to be effective December 6, 1996, 21 TexReg 11493; amended to be effective August 12, 1998, 23 TexReg 8182; amended to be effective March 16, 2000, 25 TexReg 2155; amended to be effective January 7, 2003, 28 TexReg 354; amended to be effective June 1, 2004, 29 TexReg 5413; amended to be effective November 23, 2009, 34 TexReg 8337

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