42-5070

42-5070. Transient lodging classification;
definition

A. The transient lodging classification is comprised of the business of operating,
for occupancy by transients, a hotel or motel, including an inn, tourist home or house,
dude ranch, resort, campground, studio or bachelor hotel, lodging house, rooming house,
apartment house, dormitory, public or private club, mobile home or house trailer at a
fixed location or other similar structure, and also including a space, lot or slab which
is occupied or intended or designed for occupancy by transients in a mobile home or house
trailer furnished by them for such occupancy.

B. The transient lodging classification does not include:

1. Operating a convalescent home or facility, home for the aged, hospital, jail,
military installation or fraternity or sorority house or operating any structure
exclusively by an association, institution, governmental agency or corporation for
religious, charitable or educational purposes, if no part of the net earnings of the
association, corporation or other entity inures to the benefit of any private shareholder
or individual.

2. A lease or rental of a mobile home or house trailer at a fixed location or any
other similar structure, and also including a space, lot or slab which is occupied or
intended or designed for occupancy by transients in a mobile home or house trailer
furnished by them for such occupancy for thirty or more consecutive days.

3. Leasing or renting four or fewer rooms of an owner-occupied residential home,
together with furnishing no more than a breakfast meal, to transient lodgers at no more
than a fifty per cent average annual occupancy rate.

C. The tax base for the transient lodging classification is the gross proceeds of
sales or gross income derived from the business, except that the tax base does not
include:

1. Gross proceeds of sales or gross income derived from business activity that is
properly included in another business classification under this article and that is
taxable to the person engaged in that business classification, but the gross proceeds of
sales or gross income to be deducted shall not exceed the consideration paid to the
person conducting the activity.

2. Gross proceeds of sales or gross income from leases or rentals of lodging space
to a motion picture production company if, at the time of lease or rental, the motion
picture production company presents to the business its certificate of qualification that
is issued pursuant to section 42-5009, subsection H.

D. For the purposes of this section, the tax base for the transient lodging
classification does not include gross proceeds of sales or gross income derived from:

1. Transactions or activities that are not limited to transients and that would not
be taxable if engaged in by a person not subject to tax under this article.

2. Transactions or activities that are not limited to transients and that would not
be taxable if engaged in by a person subject to taxation under section 42-5062 or 42-5073
due to an exclusion, exemption or deduction.

3. Commissions paid to a person that is engaged in transient lodging business
subject to taxation under this section by a person providing services or property to the
customers of the person engaging in the transient lodging business.

E. For the purposes of this section, "transient" means any person who either at the
person's own expense or at the expense of another obtains lodging space or the use of
lodging space on a daily or weekly basis, or on any other basis for less than thirty
consecutive days.