Current through Register Vol. 30, No. 38, September 20, 2024
A. Effective January 1, 1979, the leasing or
renting of dwelling units and lodging facilities to a person shall not be
taxable under the transient lodging classification if the lodging is obtained
for a continuous block of time for 30 or more consecutive days except as
provided under A.R.S. § 42-1310.10(B). For purposes of this rule, "person"
has the same meaning as under A.R.S. § 42-1301.
B. Gross receipts from providing lodging
obtained for a continuous block of time for 30 or more consecutive days shall
not be taxable under the transient lodging classification from the first day of
occupancy.
1. Lodging obtained for 30 or more
consecutive days in increments of time for a period of less than 30 consecutive
days rather than for a continuous block of time shall be taxable under the
transient lodging classification except as provided under A.R.S. §
42-1310.10(B).
2. A lodger may
originally acquire lodging on an incremental basis for a period of less than 30
consecutive days and subsequently change to a continuous block of time for 30
or more consecutive days; however, the lodging originally obtained on an
incremental basis of less than 30 consecutive days shall remain subject to tax
regardless of any subsequent action on the part of the lodger.
C. If lodging is obtained on a
continuous basis for 30 or more consecutive days but the person obtaining the
lodging leaves before the 30-day period ends and only pays for a period of 29
days or less, the exclusion shall not apply. The gross receipts from providing
lodging for 29 days or less shall be subject to tax under the transient lodging
classification.
D. The following
situations are indicative of the application of the provisions in this rule:
1. A person rents a motel room on a weekly
basis for 10 consecutive weeks. The total rental period is greater than 30
consecutive days; however, the method of renting by the week meets the
definition of "transient." Gross receipts from renting lodging space on such a
basis are subject to tax under the transient lodging classification.
2. A motion picture company contracts with a
hotel to rent a block of 15 rooms for a three-month period during which filming
will occur in the area. During that three-month period, a variety of crew
members and actors will occupy the rooms. Any one room may have a different
occupant during the three-month time period as filming progresses and different
actors or crew members are involved in the production of the film. The rental
by the motion picture company for the three-month period is not subject to tax
under the transient lodging classification since the motion picture company
contracted with the hotel to rent for a three-month period and, therefore, does
not meet the definition of a transient.
3. An individual reserves a room in a rooming
house for two weeks. The individual decides to stay another two weeks. The
total number of days' stay is now at 28 days. Once again, the individual
extends the stay by two weeks. Each time period is less than 30 days. Even
though the total period of time is over 29 days, after the third extension of
two weeks, the individual continues to be a transient for purposes of taxation
under the transient lodging classification. If the individual had rented the
room for 30 days or more after the first two weeks, gross receipts from the
additional time would not be subject to tax. However, the first two-week block
of time would remain taxable since that time period falls under the definition
of transient.
4. An individual is
not sure how long he will be staying at a hotel so, upon registration, gets the
room for 35 days. After 21 days the individual decides to leave and pays only
for the 21-day stay. Gross receipts are subject to tax under the transient
lodging classification. If the individual had a contractual agreement in which,
regardless of length of occupancy, he was required to pay for the entire 35
days, the gross receipts from such a transaction would not be
taxable.
