|(a) Tax Base.
(1) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(A) Charges for personal services--Charges which are
unrelated to the cost of the actual occupancy of the room or rooms.
Charges for personal services do not include charges which are related
to the cleaning and readying of a room for occupancy.
(B) Occupancy--The use or possession, or the right
to the use or possession, of any room or rooms in a hotel for any
(2) Charges subject to the tax. All charges for items
or services, other than personal services or charges for the use of
a telephone, which are furnished in connection with the actual occupancy
of the room are subject to the hotel occupancy tax. The taxable charges
include charges for the use of a television and charges for the furnishing
of additional beds or cots. These charges are includable within the
tax base whether or not separately stated.
(3) Charges not subject to tax. Charges for personal
services are not subject to the hotel occupancy tax if they are separately
stated. This includes charges for room service, messenger service,
and valet service.
(4) Package deals. If a hotel includes meals, drinks,
admission to tourist attractions, or any other unrelated benefit in
the charge for lodging, hotel occupancy tax must be paid on the entire
amount. Only if these charges are separately stated on the bill to
the customer may they be deducted from the amount subject to tax.
(b) Collection of Tax.
(1) A charitable, eleemosynary, educational, or religious
organization as defined in §3.161 of this title (relating to
Definitions, Exemptions, and Exemption Certificate) that operates
a hotel is not exempt from the requirement to report and pay hotel
(2) The hotel occupancy tax must be collected for the
rental of meeting and banquet rooms located in a building having sleeping
(3) A person required to file a hotel occupancy tax
report may withhold 1.0% of the tax due as shown on the report as
reimbursement for the cost of collecting the tax. However, a person
who fails to report the tax when due or fails to pay the tax within
the required time may not claim the reimbursement.