WAC 166

No Sales Tax Due on Purchases Made With American Red Cross Cash Assistance Cards or FEMA Debit Cards issued to Hurricane Victims Cancelled See ETA 3156.2009

Personal Home Rentals

Lodging Guide

Lodging Tax Authorized

Special excise tax authorized-Exemptions, rules and regulations may be established-Collection.

Lodging tax imposed in King county

"Sale at retail", "retail sale"

Tax on Selected Business Services, Financial Businesses, or Other Business or Service Activities.

Retail Sales Tax Imposed

Sales and use taxes authorized - Additional taxes authorized-Maximum rates

WAC 458-20-166 (Rule 166) explains the taxation of persons who provide lodging and related services to transients for a charge. The Department amended Rule 166 to recognize recent legislation: Chapter 15, Laws of 2010 1st Sp. Session (SSB 6889) - This legislation authorizes the transfer of the King County Convention and Trade Center to a public facilities district; and Chapter 563, Laws of 2009 (SB 6173) - This legislation replaces the resale certificate with the reseller permit as the means by which to document a wholesale sale.

Hotels, motels, boarding houses, rooming houses, resorts, summer camps, trailer camps, etc.

Hotels, motels, boarding houses, rooming houses, resorts, ((summer camps)) hostels, trailer camps, ((etc)) and similar lodging businesses is amended to add statutory language regarding the lodging services exemption for a “hostel” from the King County convention and trade center tax (SSB 1516, Chapter 151, Laws of 2015, 2015 Regular Session). This added language is at subsection (7)(c) of the rule.

Hotels, motels, boarding houses, rooming houses, resorts, summer camps, trailer camps, etc.Effective 3/5/94

Disaster Relief Funds Provided by FEMA and the Red Cross. This Excise Tax Advisory addresses the Washington retail sales tax treatment of purchases made under financial assistance programs administered by the Federal Emergency Management Administration (FEMA) and the American Red Cross to assist victims of natural disasters.

TRANSIENT GUESTS -- MESSAGE SERVICE CHARGES Cancelled effective 6/30/04, included in rule. This document explains that message service charges by hotels, motels, and similar lodging providers are retail sales. This document is no longer needed was WAC 166 explains that message service charges are retail sales.

LEASE FOR PURPOSES OF RELEASING. Cancelled 1/29/09 This ETA explains that the lease or purchase of tangible personal property, in this case a ship used as a floating hotel, to be used in providing lodging services is subject to retail sales tax. See Black v. State, 67 Wn.2d 97 (1965). A lodging provider's responsibility to pay retail sales tax or use tax on tangible personal property used in providing lodging services is adequately addressed in WAC 458-20-166.

Sales Tax Exemption for Foreign Diplomats

Changes for Recreational Services and Athletic/Fitness Facilities coming Jan. 1, 2016

Cover Charges for Opportunity to Dance Reclassified until July 1, 2017

Changes Relating to the Definition of Rental of real Estate for Hotels and Motels

Self-service Laundry Facilities

Information for Providers of Transient Lodging Notification of Increases in Lodging Taxes

No Sales Tax Due on Purchases Made With American Red Cross Cash Assistance Cards or FEMA Debit Cards issued to Hurricane Victims

Cover Charges for Opportunity to Dance Reclassified until July 1, 2017

Changes for Recreational Services and Athletic/Fitness Facilities coming Jan. 1, 2016

Lodging Purchases paid with a United States Government Credit Card

Changes for Recreational Services and Athletic/Fitness Facilities coming Jan. 1, 2016

Telephone Tax Changes Effective August 1, 2013

Nonprofit Boarding Homes

RETAIL SALES TAX -- RENTAL OF REAL ESTATE -- HOTEL ACCOMMODATIONS -- CONTINUOUS POSSESSION. Where an airline entered into a two year contract to rent hotel rooms, the room rentals qualified as an exempt rental of real estate only if the airline, through employees, continuously occupied the same hotel room for a period in excess of one month.

RETAIL SALES TAX--LODGING--MEMBERS AND GUESTS. In general, transient lodging and meals provided to the members and guests of an organization are subject to retail sales tax.Under most circumstances, lodges provided for the use by the members and guests of a nonprofit organization do not qualify as private lodging houses or summer camps and similar organizations under Rule 166.

HOTEL/MOTEL TAX--LICENSE TO USE REAL ESTATE--TRANSIENT--AIRPORT TIE-DOWN FEES--BOAT MOORAGE FEES. Transient boat moorage fees and transient airport tie-downs are not subject to the special hotel/motel tax because they are not received for the "furnishing of lodging".

RETAIL SALES TAX -- B&O TAX -- HOTEL-MOTEL TAX -- TIMESHARE -- FEE OWNERSHIP. Charges by a timeshare operator are subject to retail sales tax, B&O tax, and hotel-motel tax in situations where the members do not acquire the attributes of ownership in the real estate.

B&O TAX -- RETAIL SALE -- NETWORK TELEPHONE SERVICES -- COMMISSIONS -- PAY-PHONE.Where the owner of pay telephone equipment received a commission from the long distance service provider for each call originating from its equipment, the income was taxable under the service and other activities tax classification.

RETAIL SALES TAX -- B&O TAX -- HOTEL-MOTEL TAX -- TIMESHARE -- FEE OWNERSHIP. Charges by a timeshare operator are subject to retail sales tax, B&O tax, and hotel-motel tax in situations where the members do not acquire the attributes of ownership in the real estate.

CONVENTION AND TRADE CENTER TAX - INCIDENTAL CHARGES - ROLLAWAY BEDS - REFRIGERATORS.The intent of the convention and trade center tax is to tax those articles that are primary to the room rental, such as rollaway beds and refrigerators. Such items do not fit within the definition of incidental charges.

B&O TAX -EXEMPTIONS -- LEASE VS. LICENSE TO USE REAL PROPERTY - ASSISTED LIVING -- BOARDING HOMES -- EXCLUSIVE CONTROL - PRIMARY PURPOSE.Although some indicia of a lease are present in the assisted living context, the primary purpose of the taxpayer's assisted living facilities is to provide daily living assistance and care to the aged or infirm.Accordingly, the rental of real estate exemption does not apply.

B&O TAX - EXEMPTIONS -- LEASE VS. LICENSE TO USE REAL PROPERTY - ASSISTED LIVING - BOARDING HOMES -- 30 DAY PRESUMPTION.The statutory presumption that occupancy of real property for a continuous period of one month or more constitutes a lease of real property does not apply to assisted living facilities.

CONGREGATE CARE CASES OVERRULED. In published determinations, we previously held that two congregate care facilities were entitled to the rental of real estate exemption for amounts attributable to lodging if they could segregate with reasonable accuracy the amounts received from real estate rental from amounts received for personal and professional services.Det. No. 90-252, 10 WTD 41 (1990); Det. No.

SERVICE B&O TAX - B&O TAX EXEMPTION -- LEASE VS. LICENSE TO USE REAL PROPERTY - ASSISTED LIVING - 30 DAY PRESUMPTION.The statutory presumption that occupancy of real property for a continuous period of one month or more constitutes a lease of real property does not apply to assisted living facilities.

CONGREGATE CARE CASES OVERRULED.In published determinations, we previously held that two congregate care facilities were entitled to the rental of real estate exemption for amounts attributable to lodging if they could segregate with reasonable accuracy the amounts received from real estate rental from amounts received for personal and professional services.Det. No. 90-252, 10 WTD 41 (1990); Det. No.

SERVICE B&O TAX -B&O TAX EXEMPTION -- LEASE VS. LICENSE TO USE REAL PROPERTY - ASSISTED LIVING - EXCLUSIVE CONTROL VS. RIGHT TO USE - PRIMARY PURPOSE.Although some indicia of a lease are present in the assisted living context, the primary purpose of the taxpayer's assisted living facilities is to provide daily living assistance and care to the aged.Accordingly, the rental of real estate exemption does not apply.

RCW 82.04.050(2)(f) – B&O TAX – EXEMPTION -- RENTAL OF REAL ESTATE V. LICENSE TO USE REAL PROPERTY-- NON-CONTINUOUS OCCUPANCY – HOTEL ROOMS RENTED BY AIRLINES. An airline’s long-term contracts with hotels for rooms for its off-duty flight personnel were nontaxable non-transient rentals of real estate, as opposed to retail sales taxable licenses to use real property, even though the hotels did not provide Taxpayer with the same rooms for the entire 30-day period.

RULE 166, RULE 124; RCW 82.12.020, RCW 82.08.0293, RCW 82.12.0293: USE TAX – FOOD AND FOOD INGREDIENTS TO PRODUCE COMPLIMENTARY MEALS. A hotel’s purchases of food and food ingredients used in complimentary meals served only to hotel guests are not subject to retail sales tax at purchase because they are purchased for resale, and their subsequent intervening use is not subject to use tax pursuant to the statutory exemption for food and food ingredients.

B&O TAX -- RETAIL SALES TAX -- BIBLE COLLEGE -- RENTAL OF FACILITIES -- CONFERENCES --LODGING -- MEALS.Income from the rental of conference rooms, lodging, and athletic facilities by Bible college is Service B&O taxable. Cafeteria food sales are subject to Retailing B&O and sales tax when made to non-students.

CONVENTION AND TRADE CENTER TAX -- HOTELS -- TRANSIENT ROOMS AVAILABLE.Hotels and lodging places must have at least sixty rooms which are used for transient lodging before they are liable for collection of the convention and trade center excise tax in King County. A hotel with 141 rooms is not required to collect the tax where less than 60 rooms are used as transient rentals.

SALES TAX -- CONVENTION AND TRADE CENTER TAX -- EXEMPTIONS -- VOUCHER PAYMENT. Effective July 1, 1988, purchases of lodging paid for with vouchers provided by the emergency shelter voucher programs are not subject to the retail sales tax or the convention.Form of payment is not controlling in determining whether a hotel has 60 or more rooms available for use as transient lodging.

RETAILING B&O & RETAIL SALES TAX -- COST-PLUS TELEPHONE SERVICE AND CHARGES TO HOTEL GUEST--DISALLOWANCE OF "CONDUIT" EXEMPTION. Hotel's provision of telephones, telephone equipment, and access to local and long distance phone networks to guests at cost-plus rates does not qualify for "conduit" exemption/deduction of guest receipts.

B&O TAX --RETAILING -- RETAIL SALES TAX --EXEMPTION -- HOTEL -- LEASE OF REAL PROPERTY -- MONTHLY OCCUPANCY -- NONTRANSIENT.Where a hotel contracted with an airline for a block of rooms for a period of one month or more, the income from that block of rooms is considered from the rental or lease of real property and exempt from B&O tax.For purposes of computing monthly periods, monthly occupancy can begin on any day of the month.

USE TAX -- HOTEL RESERVATION SERVICE. The charge made for access to a hotel reservation service is not a charge made for the purchase of tangible personal property, but instead is a purchase of a service and not subject to use tax. Accord: 87-346, 4 WTD 26.