Colorado DOR Request for Stakeholder Input Sales Tax Exemptions for Hotel Residents
Published: September 24th, 2020
Rule 39-26-704-4 – Sales Tax Exemptions for Hotel Residents
For a copy of the announcement and instructions on submitting comments, click here:
Rule 39-26-704-4 – Draft – Sales Tax Exemptions for Hotel Residents 9-24-20
Sales Tax Colorado, LLC Opinion
The “Natural Person” language change effectively removes the exemption for corporate accounts (e.g., airlines, construction companies) renting hotel rooms for more than 30 days, limiting the exemption to individual “natural persons.” Because sales tax is imposed on the transaction rather than the person, this change appears to increase revenue and may require voter approval under TABOR. In a time when the hospitality industry is reeling from COVID-19, discouraging corporate account rentals should be reconsidered.