Commissioner of Finance. The words "Commissioner of Finance" mean the Commissioner of Finance of the City of New York.
Hotel. A "hotel" is a building or portion of a building that is regularly used and kept open as such for the lodging of guests. The term "hotel" includes an apartment hotel, a motel, boarding house, bed and breakfast, or club, whether or not meals are served. An "apartment hotel" is a building or portion of it wherein apartments are rented to guests for fixed periods of time, either furnished or unfurnished. The term "boarding house" includes rooming houses, furnished-room houses and lodging houses. The term "bed and breakfast" includes a dwelling place ordinarily occupied by a person as his or her own dwelling in which more than one room is regularly used and kept open by such person for the lodging of guests for consideration regardless of whether services such as meals, telephone or linen services are provided. The term "club" includes a residence club, as well as private clubs. To illustrate:
Illustration (i): Individual A owns and lives in a three-bedroom house in New York City. Individual A rents one of the bedrooms to guests from time to time by listing the room with a bed and breakfast listing service. At no time during the year does A rent or offer to rent more than one room to guests. The rental of one room by A is not subject to tax.
Illustration (ii): The facts are the same as in illustration (i) except that A lists two of the three bedrooms or one bedroom and the living room, in his apartment for rental to guests. A's rental of rooms in the apartment is subject to tax.
The term "hotel" also includes a bungalow, which is a furnished living unit intended for single family occupancy that is regularly used and kept open for the lodging of guests for consideration, except that for occupancies during taxable quarters beginning on or before September 1, 2003, the rental of a bungalow for at least one week will not be subject to the tax provided: no maid, food, or other common hotel services such as entertainment or planned activities are provided. The furnishing of linen by the lessor with the rental of a bungalow without the services of changing the linen does not alter the nontaxable status of the rental charges for such periods. To illustrate:
Illustration (iii): Individual B owns an apartment in New York City. Beginning on January 1, 2004, B begins to regularly rent or offer to rent the apartment, furnished, to guests on a transient basis. B's rental of the apartment to guests on a transient basis is subject to the tax regardless of whether the rentals are for periods longer than one week.
The term "hotel" does not include the following:
(1) A nursing home, rest home, convalescent home, maternity home for expectant mothers, residence or home for adults or mentally disabled persons which is registered with the Department of Social Services or Department of Mental Hygiene, whether publicly or privately owned and operated, which accepts as patients persons who require special care on account of age, illness, mental or physical condition or the like, and provides this special care either by nurses, orderlies or aides. To illustrate:
Illustration (iv): A senior citizen's lodging facility which only furnishes hotel facilities and services and does not furnish services or special care provided by attendants, etc., is a hotel.
Illustration (v): A maternity home or residence for expectant unwed mothers which is registered with the Department of Social Services and provides care and service for mothers to be. Such care and service includes maintaining a residence, social services, medical care, and arranging for delivery at a local hospital. This facility is not a hotel.
(2) A summer camp for children which provides a program of instruction or training which the campers are required to pursue under the supervision of counselors is not a hotel. Where guest facilities are provided for parents or others the tax applies to such facilities.
(3) A college dormitory or apartment belonging to a school, college, or university in which its students reside is not a hotel. Where facilities are provided for parents, alumni or others the tax applies to such facilities. A building or portion thereof will be irrebuttably presumed not to be regularly used and kept open for the lodging of guests if, during any four consecutive quarterly tax periods, or, beginning on and after September 1, 2004, during any twelve-month tax period, described in subsection a of 19 RCNY § 12-07, rooms, apartments or living units are rented to guests or occupants on fewer than three occasions or for not more than 14 days in the aggregate. For this purpose, the rentals of rooms in a single building or apartment will be aggregated and the rentals of apartments and living units will be aggregated. In addition, for this purpose, the rental of a room, apartment or living unit under a single contract for one or more consecutive days will be considered a single occasion. However, if a single contract provides for the rental of a room or apartment for non-consecutive days, each period of consecutive days will be considered a separate occasion. In addition, for this purpose, if a room, apartment or living unit is subleased or the right to occupy it is otherwise subcontracted away to another person, each separate sublease or subcontract of a room, apartment or living unit for a period of consecutive days will be considered a separate occasion. Furthermore, for this purpose, rentals to guests or occupants that qualify as permanent residents will not be included in the number of days or occasions of rentals.
Illustration (vi): A owns a four-bedroom house in New York City. During the period September 1, 2004 through August 31, 2005, A rents three of the bedrooms as follows: one bedroom is rented for the entire twelve month period to individual B who does not sublease the room; one bedroom is rented for one week to individual C; one bedroom is rented for two days to individual D, three days to individual E and one day to individual F. The rental to individual B is not considered a rental occasion or included in determining the number of days of room rentals. A is considered to have rented rooms on four occasions. However, because the total number of days is less than 14, A is not considered to be operating a hotel.
Illustration (vii): Individual A owns four apartments in New York City. During the period September 1, 2004 through August 31, 2005, A rents the apartments as follows: one apartment is rented for the entire 12-month period to individual B who does not sublease the apartment; another apartment is rented for one week to individual C; a third apartment is rented for two days to individual D, five days to individual E and four days to individual F. The rental to individual B is not considered a rental occasion or included in determining the number of days of room rentals. A is considered to have rented three of the apartments on four occasions. Because the total number of days of rentals of the three apartments is more than 14, A is considered to be operating a hotel with respect to the three apartments rented to C, D, E, and F. If the apartment rented to B were rented to B for only 190 days and was subsequently rented during the period to individual G for three days, that apartment would also be included as part of the hotel operation of A.
Occupancy.
(a) "Occupancy" is the use or possession, or the right to the use or possession, of any room or rooms in a hotel, or the right to the use or possession of the furnishings or to the services and accommodations accompanying the use and possession of the room or rooms. "Occupancy" includes the right to the use or possession as well as the exercise of that right; there is an "occupancy" of a room whether or not the person entitled to the use or possession of the room actually uses it or possesses it.
(b) A room is deemed to be the subject of only one taxable occupancy at a given time. Where an occupant sublets or otherwise contracts away his right to the use or possession, the tax shall be collected and paid in accordance with the following rules:
(1) (i) For taxable periods beginning before June 1, 2002, if the original occupant is itself an operator, as in the case of a private club located in a hotel, and subleases the occupancy to another, the taxable occupancy shall be the occupancy by the sublessee. In such case, the original occupant shall collect the tax from the sublessee and pay it over to the Commissioner of Finance.
(ii) For taxable periods beginning on or after June 1, 2002, if the original occupant or any sublessee of the room is directly or indirectly related to the original hotel operator, the taxable occupancy will be the occupancy by the sublessee of such related person. For purposes of this subparagraph (ii) an occupant will be considered to be directly or indirectly related to the original hotel operator if:
(A) the original hotel operator owns directly or indirectly a five percent or greater interest in such occupant.
(B) such occupant owns directly or indirectly a five percent or greater interest in the original hotel operator.
(C) one or more persons own directly or indirectly five percent or greater interests both in such occupant and in the original hotel operator, or
(D) such occupant is an officer, director, manager (including a manager of a limited liability company), trustee, fiduciary or employee of the original hotel operator or an individual that is a member of the family of an individual original hotel operator.
(E) For purposes of this subparagraph a five percent or greater interest shall mean, in the case of a corporation, five percent or more of the voting power of all classes of stock or five percent or more of the total fair market value of all classes of stock, and, in the case of a partnership, association, trust or other entity, five percent or more of the capital, profits or beneficial interests in such entity.
(F) To illustrate:
Illustration 1: In 2003, Z contracts for 100 rooms in a hotel at a rate of $100 per room per day for 190 consecutive days. Z subleases the rooms to its customers. Z is not a private club and is not related to the hotel operator within the meaning of this paragraph. The hotel operator is required to charge and collect the tax from Z for its occupancy of all 100 rooms for the entire 190-day period. Z is not a permanent resident with respect to any of the rooms. See 19 RCNY § 12-01 definition of a "permanent resident," paragraph (3). Z is not required to charge and collect the tax from its customers for the occupancy of any of the rooms that it subleases for the days that such rooms are sublet.
Illustration 2: The facts are the same as in Illustration 1 except that Z is related to the hotel operator within the meaning of this paragraph. In this case, the taxable occupancy is the occupancy by the customers of Z and the hotel operator is required to charge and collect the tax from the customers of Z.
(2) (i) For taxable periods beginning before June 1, 2002, if the original occupant is not an operator, the occupant's occupancy is taxable whether or not the occupant has the actual use or possession of the room and no tax will be paid by or collected from a sublessee of the occupant.
(ii) For taxable periods beginning on or after June 1, 2002, except as provided in subparagraph (ii) of paragraph (1), the occupancy of the original occupant is taxable whether or not the original occupant has the actual use or possession of the room and no tax will be paid by the person having actual use or possession of the room. See subdivision (b)(ii) of the definition of "occupancy," supra, in this section for the application of the tax to the occupancy by a sublessee of an occupancy that is related to the hotel operator.
(c) The tax is applicable to any occupancy on and after July 1, 1970, even if such occupancy is pursuant to a contract, lease, or other arrangement made prior thereto.
Occupant. An "occupant" is any person who, for a consideration, uses, possesses, or has the right to use or possess any room or rooms in a hotel under any lease, concession, permit, right of access, license to use or other agreement, or otherwise.
Operator.
(1) An "operator" is any person operating a hotel in the City of New York, including, but not limited to, the owner or proprietor of such premises, lessee, sublessee, mortgagee in possession, licensee or any other person otherwise operating such hotel. For taxable periods beginning on or after June 1, 2002, a private club that, as an accommodation to its members, makes rooms available to such members in its own buildings is an "operator" within the meaning of the law.
(2) For taxable periods beginning before June 1, 2002, any person who contracts away the use of a room or rooms in a hotel is an "operator." For example, a private club which, as an accommodation to its members, makes rooms available to such members either in its own buildings or in club rooms maintained in a hotel elsewhere, is an "operator" within the meaning of the law. For taxable periods beginning on or after June 1, 2002, any occupant who sublets or otherwise contracts away the right to use or possession of a room or rooms in a hotel is not an operator.
Permanent resident.
(1) A person is a "permanent resident" as of a given date if that person has occupied or has had the right to occupy a room or suite of rooms in a particular hotel for 180 consecutive days next preceding such date. (Prior to September 1, 1980, 90 days of occupancy qualified a person as a "permanent resident"). A person who enters into an agreement for occupancy for 180 consecutive days or more does not become a permanent resident under the law until that person has been an occupant for 180 consecutive days, and the operator is liable for the collection of the tax until such occupancy for 180 consecutive days has been completed. Where the tax has been collected by the operator for occupancy for less than 180 days and the occupant subsequently completes 180 consecutive days of occupancy, the operator may return such tax to the occupant. If the operator has paid such tax over to the Commissioner of Finance, the operator may, within one year from the date of the payment to the Commissioner of Finance, and provided the operator has returned such tax to the occupant, either take credit for the tax so paid on any subsequent return filed by the operator or file a claim for refund of such tax.
(2) A person is not a permanent resident as of a given date unless that person has completed 180 days of consecutive occupancy in the same establishment immediately prior to that date. Thus, a person who has the right to use a room only on intermittent days of the week or of the month is not a permanent resident even though that person has had more than 180 days of occupancy in the aggregate. Similarly, a person who, after having been a permanent resident, surrenders his occupancy and then subsequently resumes its occupancy, is not a permanent resident under the later occupancy until that person completes 180 additional consecutive days of occupancy. Where a person transfers from one hotel to another, even though owned or operated by the same operator, that person is not a permanent resident of the latter establishment until that person has completed 180 consecutive days of occupancy therein. However, except as provided in subdivision (3) of this definition, a person who has completed 180 consecutive days of occupancy in different rooms of the same hotel is a permanent resident of that establishment. Where a permanent resident rents additional rooms on a temporary basis, that person is not considered a permanent resident with respect to such additional rooms unless such rooms are occupied for 180 or more consecutive days.
(3) For purposes of the definition of permanent resident, days of consecutive occupancy shall not include any day that a person sublets or otherwise contracts away such person's occupancy of a room or rooms regardless of whether that person is an operator with respect to the subleasing of that room. If a person leases more than one room in a hotel that such person has sublet on some days, such person may not aggregate the days that it has not sublet any such room with the days that it has not sublet any other such room in order to qualify for permanent resident status. See illustration (vii). To illustrate:
Illustration (i): A person occupies a certain room in a hotel for 57 days. On the 57th day that person moves to a different room in the same hotel, which that person occupies for an additional 130 days. This person is considered a permanent resident with respect to the occupancy of both rooms and that person is entitled to a refund of any tax paid with respect to the occupancy of the rooms.
Illustration (ii): An airline corporation rents three rooms on an annual basis from a hotel. However, on occasion, when it requires additional rooms in the hotel for the use of its employees, it rents such additional rooms on a daily basis for a period less than 180 consecutive days. The hotel is required to charge and collect the tax from the airline corporation on the airline's occupancy of the additional rooms.
Illustration (iii): B, an individual, resides in a hotel where that person has occupied a two-room suite for a period exceeding 180 consecutive days. B also rents a studio room for his own use in practicing piano. B has the exclusive use of this studio for a period of one hour per week. At other times, the room may or may not be rented to other persons. B's use of the studio room is subject to the tax.
Illustration (iv): C, an individual, occupies a room in a hotel for a period of 180 days. He also rents two additional rooms for occupancy by his wife and his maid for a period of two weeks. The room occupied by his wife adjoins his room and the room occupied by his maid is on another floor of the hotel. The hotel operator is required to charge and collect the tax from C on the occupancy of the rooms occupied by C's maid and his wife.
Illustration (v): D, an individual, occupies a room in a hotel for a period of more than 180 consecutive days. He rents an additional room in the same hotel for one day for the purpose of holding a party for his friends. The hotel is required to charge and collect the tax from D for the occupancy of the additional room.
Illustration (vi): A corporation maintains a suite of rooms at a hotel on a permanent basis. During one week of the year, it holds a general sales meeting and for that purpose rents 75 additional rooms in the same hotel for the use of its employees. The hotel operator is required to charge and collect the tax from the corporation for the occupancy of the 75 additional rooms.
Illustration (vii): Z, a tour company, contracts for 100 rooms in a hotel for 190 consecutive days. Z subleases 98 of the 100 rooms to its customers. Each of the 98 rooms is sublet for most of the 190-day period. However, there is no single day within the 190-day period on which all 98 rooms are sublet. Z uses the remaining two rooms to conduct its business. It does not sublease either of the two rooms for any period of time. Z becomes a permanent resident of the two rooms used to conduct its business when it completes 180 days of consecutive occupancy and is entitled to a refund of any tax paid with regard to the occupancy of these two rooms. Z does not become a permanent resident with respect to any of the 98 rooms that it subleases to customers even though at least one of the rooms is unoccupied for each of the 190 days.
Person. The term "person" includes an individual, partnership, society, association, joint-stock company, corporation, estate, receiver, trustee, assignee, referee, or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals or of the foregoing.
Place of assembly. A "place of assembly" is an enclosed room or space in which 75 or more persons gather for religious, recreational, educational, political or social purposes, or for the consumption of food or drink, or for similar group activities, but excluding such spaces in dwelling units; or an outdoor space in which 200 or more persons gather for any of the above reasons. For purposes of this definition a room or space will be considered to be a place of assembly if either:
(1) banquet or catering contracts indicate that at a particular function the expected attendance is 75 or more persons or
(2) the room has been certified as a "place of assembly" by the Department of Buildings. To illustrate:
Illustration (i) Hotel B has a ballroom, adjacent to which is a reception room and two small foyers. The four rooms, by use of folding doors, can be converted into one large space accommodating a maximum of 2,500 persons. Under certain circumstances the ballroom may be rented for a function for 1,000 persons, the reception room for 250 persons, and either one or both of the foyer rooms to groups of from 25 to 50 persons, by closing the folding doors and thus providing four separate units. Accordingly, the tax would not apply where the ballroom is rented for a function for 1,000 persons, or the reception room for 250, or for either or both rooms where rented for 75 or more persons. However, the tax does apply where one or both of the foyer rooms (which are not "certified" as places of assembly) may be rented to groups of from 25 to 50 persons.
Illustration (ii) Hotel B has a meeting room which has been certified as a "place of assembly" by the Department of Buildings. The rental of such room (regardless of the expected or actual attendance) shall be exempt from the tax.
Rent.
(1) "Rent" is the consideration received for occupancy, valued in money, whether received in money or otherwise, including all receipts, cash, credits, and property or services of any kind or nature, and also any amount for which credit is allowed by the operator to the occupant, without any deduction therefrom whatsoever.
(2) The entire amount charged by the operator for the use or possession of the room, of its furnishings, and of the services and accommodations accompanying its use and possession, constitutes rent under the law. Such services include but are not limited to the use of furniture and furnishings, maid and porter service, towel and linen service, doorman, bellman, and elevator service. The total charge for such services is deemed to be rent whether included in a lump-sum charge for the room or separately stated. Services and accommodations not deemed to accompany the use or possession of the room are the following: Food and liquor, valet and laundry service, and transportation and theatre ticket service. Where the operator separately charges for such services on any evidence of sale, such charges are not deemed to constitute rent. However, where a lump-sum charge for a room includes one or more such accommodations or services, the lump sum charge is deemed to constitute rent, except that where the charge includes meals the tax shall be applicable as follows:
If the total charge includes: | The portion of the total charges subject to tax is: |
Breakfast, Lunch, Dinner | 50% |
Lunch, Dinner | 60% |
Breakfast, Dinner | 60% |
Breakfast, Lunch | 70% |
Dinner | 75% |
Lunch | 85% |
Breakfast | 85% |
(3) Where the exclusive use of a room is secured by a person as an incident to the furnishing by the operator of food and/or drink to be served in such room, such use constitutes a taxable occupancy, and any separate charge for rent for such occupancy is subject to tax. If no separate charge for the room is made to such person, 20% of the total charge to such person for the food and/or drink shall be attributable to the use of such room and taxable as rent.
To illustrate: In 1982, A secures from B, an operator of Hotel C, the exclusive use of the Blue Room in Hotel C, in accordance with an arrangement whereby B will furnish and serve A and his guests with food and/or drink in the Blue Room. The total charge to A for such food and/or drink is $150.00. No separate charge is made to A for the use of the Blue Room. Operator B is required to collect a tax of $1.50 from A.
Where the exclusive use of a room is secured by a person as an incident to the furnishing by the operator of food and/or drink to the guests of such person, to be served in such room, and no separate charge is made for such use of the room, food and/or drink to such person, but a charge for the food and/or drink is made to the guests, 20% of the total charge to the guests for the food and/or drink shall be attributable to the use of such room by such person and taxable as rent. If the charge to the guests is less than a minimum amount guaranteed by such person, 20% of the guaranteed minimum shall be attributable to the use of such room by such person and taxable as rent.
To illustrate: A secures from B, an operator of Hotel C, the exclusive use of the Blue Room in Hotel C, in accordance with an arrangement whereby the charge for the food and/or drink to be served in such room will be made directly to the guests and no separate charge will be made for the use of the Blue Room. The total sales realized by B are $90.00. B is required to collect a tax of $.50 from A. If A guaranteed B a minimum sales volume to his guests of $200.00 then B will be required to collect a tax of $2.00 from A.
(4) The tax is not applicable to any rent which has been ascertained to be worthless. Where a tax has been paid upon rent which has subsequently been ascertained to be worthless, the operator may take credit for the tax so paid on any subsequent return filed by him within one year from the date of the payment of such tax, or he may file a claim for refund of such tax within one year from the date of payment thereof.
(5) The tax is not applicable to rent which has been returned by an operator to an occupant. Where the operator has paid the tax on such rent to the Commissioner of Finance, he may take credit for the tax so paid on any subsequent return filed by him within one year from the date of the payment of such tax, or he may file a claim for refund of such tax within one year from the date of payment thereof.
(6) A cash discount may not be deducted from rent. However, where a discount is unconditionally deducted by an occupant upon settlement of his bill and is allowed as a matter of established custom without regard to the due date of such bill, the amount of such discount is not deemed to be a part of the rent.
(7) Complimentary accommodations. When a hotel furnishes complimentary accommodations for which there is no consideration no tax applies. To illustrate:
Illustration (i) An operator of a hotel furnishes free of charge hotel room accommodations to governmental officials, friends or relatives of management, visiting hotel representatives, hotel employees and representatives of charitable and religious organizations. These complimentary hotel rooms are deemed to have been furnished gratuitously, and as such are not subject to the tax.
Illustration (ii) An operator of a hotel furnishes complimentary rooms to persons who procure guests for the hotel, such as tour guides, travel representatives, teachers and chaperons in charge of student groups, or representatives of organizations at the time of the negotiations for future business for the hotel. The rooms furnished at such time are deemed to have been furnished in consideration of their efforts in bringing potential business to the hotel. Such occupancies are subject to the tax based upon the normal rental charge for the room.
Illustration (iii) Association ABC holds its December convention at Hotel Y and receives five complimentary rooms for use by the association's officers and convention chairman for the duration of the convention. The complimentary rooms are not considered taxable.
Room. Any portion of a hotel, whether used for dwelling, commercial or any other purpose, is a "room" under the law and these rules, except:
(1) a bathroom or lavatory,
(3) a store, stand or counter to which access is had directly from public thoroughfares or street or mezzanine lobbies, and,
(4) a lobby, public dining room or other public room when employed as such, provided, however, when such lobby, public dining room or other public room is used exclusively for a private purpose, the occupancy thereof is subject to tax (unless the room qualifies as a place of assembly). The term "room" shall include a kitchenette provided that it is a walk-in area, enclosed by walls, with one or more doorways, archways or other openings, it is supplied with a cooking appliance including but not limited to a range, microwave or convection oven, or hot plate, and it contains at least one item from each of two of the following three categories:
(i) a sink with running water, or dishwater;
(ii) a refrigerator;
(iii) a cabinet, counter top, or table.
Example: A hotel suite contains a kitchenette with a microwave oven, refrigerator, sink, cabinets and a counter top.
(a) The kitchenette is a walk-in area with three walls and a wide opening on the fourth side. The kitchenette is a room.
(b) The above items are all set into a wall and there is no appurtenant walk-in area. The kitchenette is not a room.
(c) Same facts as in (a) except the microwave is not in the kitchenette but rather is outside the kitchenette. The kitchenette is a room.
(a) The law imposes a tax, measured by the rent per day, for every occupancy of a room or rooms in a hotel in the City of New York, commencing July 1, 1970, with certain exceptions set forth hereinafter.
(b) On and after July 1, 1970 until August 31, 1980, the rates of tax were as follows:
If the rent per day for the room was: | The tax was: |
Less than $10 | $0.25 per day |
$10 or more, but less than $15 | $0.50 per day |
$15 or more, but less than $20 | $0.75 per day |
$20 or more | $1.00 per day |
(c) on and after September 1, 1980, the rates of tax are as follows:
If the rent per day for the room is: | The tax is: |
Less than $10 | $0.00 |
$10 or more, but less than $20 | $0.50 per day |
$20 or more, but less than $30 | $1.00 per day |
$30 or more, but less than $40 | $1.50 per day |
$40 or more | $2.00 per day |
(d) Where a person occupies a room for less than a full day and pays less than the rent for a full day, the tax shall nevertheless be the same amount as would be due had such person occupied the room for a full day at the rent for a full day.
(e) As used in the law and these regulations, the word "day" means any period of 24 consecutive hours, or the actual period of occupancy if less than 24 hours, due regard being had for the established check-out time and practices regarding the early check-in and late check-out of guests of the particular hotel. If the hotel does not impose an additional charge for early check-in or late check-out of guests, then the occupancy before or after the official check-in and check-out times is not taxable.
To illustrate: A checks into Hotel B at 1:00 p.m. Monday afternoon and checks out at 6:00 p.m. Wednesday evening. The established check-out time at Hotel B is 12 noon. The period from 1:00 p.m. Monday to 12 noon Tuesday constitutes a day for purposes of the tax, as does the period from noon Tuesday to noon Wednesday. The period from 12 noon Wednesday to 6:00 p.m. Wednesday will constitute a day for purposes of the tax only if the hotel charges the guest for such period after the 12 noon established check-out time. Accordingly, if Hotel B imposes a charge for the late check-out A is deemed to have spent 3 days at Hotel B. However, if Hotel B does not impose any additional charge for late check-out then A is deemed to have spent 2 days at Hotel B.
Where the rent is based on a term longer than one day, such as a weekly or monthly term, the rent per day is computed by dividing the total number of days of occupancy into the total charge for such occupancy.
To illustrate: A occupies a hotel room during the month of September, 1982, at the rate of $750 per month. The rate per day is 1/30 × $750, or $25, and the tax is $1.00 per day.
(f) Where the rent is for more than one room, including a suite of rooms, the daily rent for each room is determined by multiplying the daily rent for the group of rooms by a fraction, the numerator of which is the daily rent for the particular room, or a similar room, when such room is rented alone with similar bath facilities, and the denominator of which is the total of the daily rent for the individual rooms in the group of rooms, or similar rooms, when such rooms are rented alone with similar bath facilities.
To illustrate: In 1982 A and his wife occupy a suite of hotel rooms for one day. The suite consists of a bedroom, a living room, and bathroom. The rent charged for the suite is $40 per day. When rented separately, the daily rents for the bedroom and living room are $20 and $30 respectively. The daily rent for the bedroom rented as part of the suite is 20/50 × $40, or $16; the daily rent for the living room is 30/50 × $40, or $24. Accordingly, the tax is $.50 for the bedroom and $1.00 for the living room. The bathroom is not considered a room, and is not subject to the tax.
Where an entire rent is charged for more than one room, whether or not a suite, if such rooms are not otherwise rented separately, the daily rent per room is to be determined by dividing the entire rent by the number of rooms for which the charge is made. For example, if the entire charge for a suite of 3 rooms is $90 per day, the charge for each room is considered to be $30. A tax of $1.50 must be paid for each room, a total tax of $4.50 for the suite.
(g) The tax is not imposed upon occupancy by a permanent resident as defined in 19 RCNY § 12-01 "Permanent Resident".
(h) The tax is not imposed upon occupancy by the federal or New York State governments or political subdivisions of the State. (See: 19 RCNY § 12-03.)
(i) The tax is not imposed upon occupancy by religious, charitable, and educational organizations, nor on rents received by such organizations, to the extent provided in 19 RCNY § 12-03.
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