Form Pub. Ks-1540 - Kansas Business Taxes For Hotels Motels & Restaurants (Page 34 of 42) in pdf

Office Of the Secretary

Phone: 785-296-3041

915 SW Harrison St

FAX: 785-368-8392

Topeka KS 66612-1588

Nick Jordan, Secretary

Sam Brownback, Governor

Department of Revenue

Revised Revenue Ruling 19-2010-04

August 8, 2012

Tax Base for Kansas Transient Guest Taxes

and the Sales Tax Imposed at K.S.A. 2009 Supp. 79-3603(g)

Kansas law contains two transient guest tax statutes that levy tax on charges to transient guests for sleeping accommodations.

K.S.A. 12-1693 authorizes Sedgwick County, or a qualifying city within the county, to levy local transient guest tax. K.S.A.

12-1697 authorizes other qualifying Kansas cities and counties to levy the local tax. The rate of a city or county tax may not

exceed 2%.

Kansas sales tax is imposed on charges for renting rooms to transient guests for use as sleeping accommodations. K.S.A.

2009 Supp. 79-3603(g); K.S.A. 36-501(a). The tax rate for this levy is the combined state and local sales tax rate in place

where the room is located.

A business is required to collect transient guest tax if it maintains three or more rooms to rent to transient guests as sleeping

accommodations. A business is required to collect sales tax if it maintains four or more such rooms. These collection duties

apply whether or not the sleeping rooms are in one or more buildings denominated a hotel, motel, tourist court, camp cabins,

rooming house, boarding house, apartment, or something else, so long as the business advertises or otherwise holds itself out

to the public as engaging in the business of renting sleeping accommodations to transient guests. For reasons of simplicity, this

ruling will refer to these businesses collectively as "hotels."

The department implements transient guest tax and K.S.A. 2009 Supp. 79-3603(g) as taxing hotel charges to guests for

"sleeping accommodations, exclusive of charges for incidental services or facilities." Because of this uniform treatment, any

separately-stated charge that is subject to transient guest tax is subject to sales tax under K.S.A. 2009 Supp. 79-3603(g).

"Accommodation" means "something supplied . . . to satisfy a need," which suggests that a charge for "sleeping

accommodations" includes more than simply the charge that gives a guest the right to occupy a hotel room. Webster's Ninth

Collegiate Dictionary, p. 49. Because transient guest tax is imposed on charges for "sleeping accommodations," the

department implements transient guest tax and K.S.A. 2009 Supp. 79-3603(g) as taxing separately-stated charges for cots,

cribs, rollaway beds, extra bedding, and linens that are placed in a guest's sleeping room, in addition to the charge for the right

to occupy the room. Charges for the right to occupy a hotel sleeping room, which is the principal charge for "sleeping

accommodations," includes the charges for the room itself as well as any separately-stated charges for extra guests, lost

keys, having pets in the sleeping room, and various other charges that are listed below.

Section I lists separately-stated charges billed to a guest's room that are considered to be charges for sleeping accommodations.

These charges are subject to both transient guest tax and sales tax under K.S.A. 2009 Supp. 79-3603(g). Sections II and III

list many but not all of the separately-stated guest charges that are considered to be charges "for incidental services or

facilities." Because these charges are not for sleeping accommodations, they are not subject to either transient guest tax or

the sales tax imposition at K.S.A. 2009 Supp. 79-3603(g). This doesn't mean that charges for "incidental services or facilities"

are not subject to sales tax.

Many of these charges are taxed by sales tax impositions other than K.S.A. 2009 Supp. 79-3603(g). For example, charges to

a guest for meals, rentals of tangible personal property, and laundry and dry cleaning services are specifically taxed under

K.S.A. 2009 Supp. 79-3603(d) - (sales of meals), K.S.A. 2009 Supp. 79-3603(h) - (rental services), and K.S.A. 2009 Supp.

79-3603(i) - (laundry and dry cleaning services). There are many other sales tax impositions that can apply to a

separately-stated guest charge, even though the charge isn't for "sleeping accommodations."

Hotels need to know how to charge tax on the separately-stated charges they bill to guests. Section I of this Revenue Ruling

lists separately-stated charges for "sleeping accommodations" that are subject to both transient guest tax and the sales tax

imposed at K.S.A. 2009 Supp. 79-3603(g). Section II lists separately-stated charges for "incidental services or facilities" that

are not subject to transient guest tax or K.S.A. 2009 Supp. 79-3603(g), but are subject to sales tax under imposition sections

Form Pub. Ks-1540 - Kansas Business Taxes For Hotels Motels & Restaurants Page 34

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