SECTION .1200 ‑ HOTELS: MOTELS: TOURIST CAMPS AND
TOURIST CABINS
17 NCAC 07B .1201 TAXABILITY OF GROSS RECEIPTS
(a) Gross receipts derived from the rental of any room or
rooms, lodgings or accommodations furnished by any hotel, motel, inn, tourist
camp, tourist cabin and any private residence, condominium (time share and
interval ownership properties), cottage or any other place in which rooms,
lodgings or accommodations are furnished to transients for consideration are
subject to the general rate of State tax and any applicable local sales or use
tax, except as set forth in Paragraphs (b) and (c) of this Rule or as otherwise
provided by the statute.
(b) Receipts derived from the rental of any room, lodging
or accommodation to the same person for a period of 90 continuous days or more
are not subject to the tax, and the tax collected from any person prior to the
accumulation of such 90 continuous days of occupancy by said person shall be
refunded to such person by the retailer collecting the same. A retailer
actually making any such refund of tax which he has paid to the department may
claim credit for the tax so refunded on a subsequent return filed by him with
the department.
(c) Receipts derived from an occasional or isolated rental
of a private residence or cottage by the owner for less than a total of 15 days
in a calendar year are not subject to sales tax. The less than 15 days
exclusion is applicable only to those private residences and cottages which are
not made available for rental to transients. If the private residence or
cottage is generally or routinely made available by the owner for rental to transients,
the less than 15 days exclusion is not applicable to such rentals and all
receipts there from are taxable without regard to the aforementioned period.
When private residences and cottages are listed with real estate agents,
including "real estate brokers" as defined in G.S. 93A‑2, for
rental to transients, such private residences and cottages are deemed to be
generally available for rental to transients and the less than 15 days
exclusion is not applicable to any receipts from such rentals to transients.
(d) Sales of time share or interval ownership property
which can be transferred by estate, gift or devise pursuant to deeds or
documents under which the owners have a fixed and continuing right to occupy
such units during a specified period of time in the same manner as a person who
owns or is buying a private residence or cottage are considered to be sales of
real property not subject to sales or use tax. When owners of interval
ownership and time share property do not occupy the property but rent it to
transients or place the property in the hands of a rental agent, including
"real estate brokers" as defined in G.S. 93A‑2, for rental on
their behalf to transients, such receipts are subject to sales tax and the less
than 15 days exclusion is not applicable to any receipts from such rentals as
explained in Paragraph (c) of this Rule.
History Note: Authority G.S. 105‑164.4; 105‑262;
Article 39; Article 40; Article 42; Article 43; Article 44; Article 46;
Eff. February 1, 1976;
Amended Eff. October 1, 2009; October 1, 1993; October 1,
1991; August 1, 1988; July 1, 1984.