006.05.212-GR-8. SERVICES SUBJECT TO TAX-LODGING:
AR ADC 006.05.212-GR-8Arkansas Administrative Code
Ark. Admin. Code 006.05.212-GR-8
006.05.212-GR-8. SERVICES SUBJECT TO TAX-LODGING:
A. The service of furnishing rooms, suites, condominiums, townhouses, rental houses or other accommodations to transient guests by hotels, motels, apartment hotels, lodging houses, tourist camps, hunting lodges, tourist courts, bed and breakfast properties, property management companies or any other provider of accommodations to transient guests is subject to gross receipts tax.
Example 1: Renter A rents a room from a hotel for a 6 month period. Renter A owes the monthly rental payment for the entire month at the beginning of each month. Renter A shall give a 30 day notice if A wants to terminate the rental prior to the end of the 6 months. Renter A is not a transient guest and the rental is not taxable.
Example 2: Renter B pays daily. Renter B occupies the rented accommodations for a period of 34 days. Renter B does not pay, and is not obligated for the payment of days other than the 34 days of occupation of the accommodations. Renter B is a transient guest, and tax should be collected on the daily charges.
Example 3: Renter C is staying at the accommodations indefinitely. Renter C pays the bill at the conclusion of each month. Renter C's bill accrues daily charges. Renter C can leave the accommodations at any time. Renter C is a transient guest and tax should be collected on the entire term of the rental even though Renter C occupied the accommodations for longer than 30 days.
Example 4: Renter D company has a contract calling for the rental of a certain number of rooms on an annual basis. Different people stay in the rooms each night and different rooms within the hotel are used for this purpose. The company is not a transient guest and tax is not required to be collected on the rental charges.
Credits
AUTHORITY: Ark. Code Ann. § 26-52-301(3)(A)
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.212-GR-8, AR ADC 006.05.212-GR-8
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