Rule 33. - Hotels and tourist camps.

For tax purposes, the term "hotel" means any establishment engaged in the business of furnishing sleeping rooms primarily to transient guests where such establishment consists of ten or more guest (sleeping) rooms under a single roof. If the establishment contains less than ten sleeping rooms, the tax does not apply. Similarly, if more than half of the guests are permanent, the tax does not apply. But, if the establishment cannot be excluded from the definition of "hotel" under either of the foregoing bases, the tax must be collected with respect to the charges to all guests, permanent as well as transient.

The question of whether the guests of a particular establishment are transient guests must be determined on the facts in each case. A guest who pays for a room by the month and who resides in the establishment for a long period of time would not ordinarily be classified as a transient guest. On the other hand, one who pays for a room by the day or by the week would ordinarily fall within the classification of a transient guest.

Where an establishment consists of sleeping rooms and apartments with facilities for cooking and eating, the apartments are not included in determining the liability for tax. For example if there are eight sleeping rooms furnished to transient guests, six sleeping rooms to permanent guests, and ten apartments to permanent guests, the sleeping rooms constitute a "hotel" since more than half of them are furnished to transient guests—the apartments being completely disregarded for the purpose of classifying the remaining rooms and are not subject to the tax.

The term "tourist camp" means any establishment engaged in the business of furnishing rooms, cottages, or cabins to tourists or other transient guests, where the number of guest rooms, cottages 2821 or cabins at a single location is six or more. It should be noted that the classification is determined by the type of guests accommodated and the number of units at each location. Whether cooking and eating facilities are furnished is immaterial.