Tax Type
Retail Sales and Use Tax
Description
Bed and Breakfast Inns
Topic
Taxability of Persons and Transactions
Date Issued
10-14-1987
October 14, 1987
Re: §58.1-1821 Application/ Sales and Use Tax
Dear *********************
This will reply to your letter of June 8, 1987 seeking the correction of an assessment issued in the above referenced case for the period January, 1982 through December, 1986.
FACTS
In connection with her operation of a bed and breakfast inn, ******** (taxpayer) was assessed the sales and use tax for failing to collect and report the tax on the total charge to her customers. The taxpayer contends that charges for accommodations in a small bed and breakfast inn operated out of one's home, such as her own, should not be taxed in the same manner as charges for accommodations in large commercial lodging establishments such as hotels and motels. Accordingly, the taxpayer seeks the waiver of the entire assessment.
DETERMINATION
When read together, subsection (4) of §58.1-603 and subsection (14) of §58.1-602 of the Virginia Code impose the sales tax on "the gross proceeds derived from the sale or charges for rooms, lodgings or accommodations furnished to transients ... for less than ninety continuous days by any hotel, motel, inn, tourist camp, tourist cabin, camping grounds, club, or any other place in which rooms, lodging, space or accommodations are regularly furnished to transients for consideration." (Emphasis added)
Notwithstanding the differences which may exist between bed and breakfast inns and large hotels and motels, charges for accommodations in a bed and breakfast inn are subject to the tax in the same manner as charges for hotel or motel accommodations, since they both represent charges for lodging, space or accommodations regularly furnished to transients for a consideration.
Moreover, it is not necessary that the accommodations offered by the taxpayer's bed and breakfast..be provided on a continuous basis in order for them to be considered furnished "regularly" within the meaning of the above referenced Code section. Rather, such accommodations need only be offered with some frequency, such as on a weekly, monthly, seasonal f or some other recurring basis to be considered furnished regularly.
It should be noted further that, as the operator of a bed and breakfast inn, the taxpayer must pay the tax on all items of tangible personal property purchased for use in the operation of the inn, including any food served to guests and included in the taxpayer's lump sum charge for accommodations.
Based on all of the foregoing, I find no basis for correction of the assessment, which is now due and payable.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner