Loading...
(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.
The following persons are exempt from the tax:
(a) The State of New York, or any public corporation (including a public corporation created pursuant to agreement or compact with another state or the Dominion of Canada), improvement district or other political subdivision of the State; the United States of America, insofar as it is immune from taxation; the United Nations or other worldwide international organizations of which the United States of America is a member.
(b) Any corporation, or association, or trust, or community chest, fund or foundation, organized and operated exclusively for religious, charitable, or educational purposes, or for the prevention of cruelty to children or animals, and no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation; provided, however, that nothing in this subdivision (b) shall include an organization operated for the primary purpose of carrying on a trade or business for profit, whether or not all of its profits are payable to one or more organizations described in this subdivision (b).
(c) Where any organization described in subdivision (b) above, carries on its activities in furtherance of any of the purposes for which it was organized, in premises in which, as part of said activities, it operates a hotel, occupancy of rooms in said premises and rents therefrom received by such organization are not subject to the tax. An organization claiming exemption under subdivisions (b) and (c) above must make application for such exemption to the Commissioner of Finance and is required to submit to the Commissioner of Finance such information as will enable the Commissioner to rule upon the applicant's status. The Commissioner, if satisfied that the applicant is entitled to the exemption, will issue a letter of exemption to the applicant. An applicant for exemption is required to submit an affidavit which shall set forth the following:
(1) The type of organization,
(2) The purposes for which it is organized,
(3) Its actual activities,
(4) The source and disposition of its income,
(5) Whether or not any of its income is credited to surplus or may inure to any private stockholder or individual, and
(6) Such other facts which may affect its right to exemption. The affidavit must be supplemented by a copy of the articles of incorporation, or articles of association, as the case may be, a copy of the by-laws of the organization, a financial statement showing its assets and liabilities for the most recent year, and a photostatic copy of the letter, if any, from the United States Treasury Department granting the organization exemption from Federal income taxation. An organization which is an occupant of a hotel room and claims exemption from tax on such occupancy must furnish a copy of the letter of exemption to the hotel operator when claiming such exemption. Where the occupancy is by an agent, representative, or employee of the organization, a certificate, on the form prescribed by the Commissioner, certifying that the occupancy is solely for official purposes and that the rent has or will be paid by the organization, must be furnished to the operator.
(a) Occupancy of rooms by the Federal government or by the State or City of New York or by an agency of such governments, is not subject to the tax. Employees and representatives of such governments and agencies, who occupy rooms solely for official purposes, are not required to pay the tax, providing that they furnish to the operator certificates on the form prescribed by the Commissioner, certifying that the rent has been or will be paid by the governmental agency concerned.
(b) Ambassadors, ministers and other diplomatic representatives of foreign governments properly accredited to the United States, are exempt from tax upon their occupancy of rooms. Such exemption does not apply to consular officers or to officers of foreign governments other than those hereinabove specified, unless such exemption arises from treaties or reciprocal agreements existing between such foreign governments and the United States. A person claiming exemption from the tax under this subdivision is required to apply in writing therefor to the Commissioner of Finance, submitting with his application a copy or other evidence of the appropriate treaty or reciprocal agreement between his government and the United States. If the request for exemption is approved, a letter of exemption will be issued to the applicant, and a copy of such letter must be submitted to the operator whenever claim for exemption is made.
Loading...