39-26-704-4 - Sales Tax Exemptions for Hotel Residents
Basis and Purpose. The bases for this rule are sections 39-21-112(1), 39-26-102(11), 39 26 104(1)(f), and 39-26-704(3), C.R.S. The purpose of this rule is to further explain the exemptions for long-term rentals of rooms and accommodations applicable to state and state-administered local sales taxes and the written agreement required for such exemptions.
(1)
State Sales Tax. The state
sales tax imposed pursuant to section
39-26-104(1)(f),
C.R.S., does not apply to the amount charged for any room or accommodations
rented to any natural person who:
(a) is a
permanent resident of such room or accommodations; and
(b) enters into or has entered into a written
agreement for occupancy of such room or accommodations for a period of at least
thirty consecutive days.
(2)
State-Administered Local Sales
Taxes.
(a) Except as provided in
paragraph (2)(c) of this rule, local taxes administered by the Department do
not apply to the amount charged for any room or accommodations rented to any
occupant, including, but not limited to, any natural person, who:
(i) is a permanent resident of such room or
accommodations; and
(ii) enters
into or has entered into a written agreement for occupancy of such room or
accommodations for a period of at least thirty consecutive days.
(b) For the purpose of this rule,
"local taxes administered by the Department" include, but are not limited to:
(i) sales taxes administered by the
Department for any county, city, town, or home rule municipality pursuant to
section 29-2-106, C.R.S.;
(ii) sales taxes administered by the
Department for any special district pursuant to title 32, C.R.S.;
(iii) sales taxes administered by the
Department for any local improvement district pursuant to section
30-20-604.5, C.R.S.;
(iv) sales taxes administered by the
Department for public safety improvements pursuant to section
30-11-107.9, C.R.S.;
(v) sales taxes administered by the
Department for any multijurisdictional housing authority pursuant to section
29-1-204.5(3)
(f.1), C.R.S.;
(vi) sales taxes
administered by the Department for any regional transportation authority
pursuant to section
43-4-605, C.R.S.;
(vii) county lodging taxes administered by
the Department pursuant to section
30-11-107.5, C.R.S.;
(viii) marketing and promotions taxes
administered by the Department pursuant to section
29-25-112, C.R.S.
(ix) sales taxes administered by the
Department for any regional library authority pursuant to section
24-90-110.7, C.R.S.;
(x) sales taxes administered by the
Department for any unit of government hospital care provider pursuant to
section 25-42-103, C.R.S.; and
(xi) sales taxes administered by the
Department for any Republican river water conservation district pursuant to
section 37-50-110, C.R.S.;
(c) A city, county, special
district, or other taxing authority that imposes a tax listed in paragraph
(2)(b) of this rule may, by ordinance, resolution, or amendment thereto,
subject to such tax all rentals of rooms and accommodations described in
paragraph (2)(a) of this rule. In such case, all rentals of rooms and
accommodations, regardless of the duration of such rental, shall be subject to
the tax imposed by such city, county, special district, or other taxing
authority.
(3) For the
purpose of section
39-26-704(3),
C.R.S., and this rule, "written agreement" includes any legally enforceable
written contract for the furnishing of rooms or accommodations, whether made in
writing, electronically, or by any other means. Evidence of such agreement
includes, but is not limited to, a hotel registration or a rent receipt. A
canceled check shall not, by itself, be sufficient to substantiate a written
agreement.
Notes
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