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Old 10-23-2011, 10:33 PM   #1
jbp23
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Hotel Tax Exempt after 30days Loopholes?

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I am residing at a hotel in San Marcos, TX and I always though after 30 consecutive days of staying at a hotel you become a permanent resident thus tax exempt from the hotel tax. Apparently, the owner of the hotel has been checking me out every 7 days and then re-checking me in. He thinks that because he does this it automatically cancels out my 30-day tax exempt status. Is this true and is this a loophole? The TX law states:

Permanent Residents
(30-Day Rule)

Guests who occupy a hotel room for 30 or more consecutive days are considered permanent residents and are exempt from hotel tax. There can be no interruption of payment during that period.

I would guess the key words and phrase here is consecutive and no interruption of payment. Just because he technically checks me in and out within seconds of each other it does not negate I am staying consecutively and there is obviously no interruption of payment. Any advice/help on this would be appreciated.

Thanks,
Joe
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Old 10-24-2011, 12:20 AM   #2
Juno
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“Guests who occupy a hotel room for 30 or more consecutive days are considered permanent residents and are exempt from hotel tax. There can be no interruption of payment during that period.I would guess the key words and phrase here is consecutive and no interruption of payment. Just because he technically checks me in and out within seconds of each other it does not negate I am staying consecutively and there is obviously no interruption of payment. Any advice/help on this would be appreciated.”----> In Texas, if you notify the hotel upon check-in that you will occupy the room for at least 30 consecutive days, the state and local occupancy taxes will be waived after the 30th day, retroactive to the first day; the total amount will be credited to your bill. (Any interruption in the term of occupancy will void the exemption.) If you stay in the hotel for more than 30 consecutive days without notifying the hotel of your intention, occupancy taxes will be waived for the 31st day and all consecutive days, but will not be waived retroactively. If you learn after check-in that you will be staying for 30+ consecutive days, notify the hotel immediately; after the 30th day, occupancy taxes will be waived retroactively to the date of notification.
Please visit the Website here for more information: http://www.window.state.tx.us/taxinf.../faqhotel.html
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Old 10-24-2011, 06:09 AM   #3
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Yes, I am aware of what the statute says. But my question is what the hotel owner doing illegal and does it negate the tax refund I am entitled to after staying 30 days and more. My guess is that as long as I stay consecutively and there are no interruptions in payment then even if the owner does check-me-in and out ever 7 days (in order to avoid my tax refund) I am still entitled to my occupancy tax refund. Can someone please tell me if my guess is correct or not?
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Old 10-24-2011, 07:33 AM   #4
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"My guess is that as long as I stay consecutively and there are no interruptions in payment then even if the owner does check-me-in and out ever 7 days (in order to avoid my tax refund) I am still entitled to my occupancy tax refund"---> I guess so;after a person has occupied or has the right to occupy for 30 consecutive days, he is no longer a “transient” as defined in the Ordinance. His status as a “permanent resident” is effective for the rental period during which, or at the expiration of which the 30th consecutive day of occupancy is completed and continues thereafter so long as his occupancy remains continuous and uninterrupted. Thus, if a person completes his 30th day of consecutive occupancy during, or at the expiration of, a particular rental period, he is a permanent resident for that entire rental period even though, during a part of the period, he had not yet established his status as a permanent resident and for each rental period thereafter in which his occupancy continues uninterrupted. So, if a hotel/inn operator collects tax in advance for a rental period during or at the expiration of which is or becomes exempt for tax by reason of the lessee’s becoming a permanent resident, the operator must refund the tax so collected to the “permanent resident” and should not report or remit such erroneously collected tax to the Office of the County Treasurer.
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