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.