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Division of Taxation

Permanent Residents

An occupant of any room or rooms in a hotel, motel, or transient accommodation for at least 90 consecutive days is considered a permanent resident for the period of such occupancy. The owner or operator must collect Sales Tax, the State Occupancy Fee, and, if applicable, the Municipal Occupancy Tax from an occupant until the occupancy reaches 90 consecutive days. When continuous occupancy has reached 90 days, the fee/taxes are no longer imposed and the fees/taxes previously collected are refundable to the occupant. If the fee/taxes are not refunded to the occupant by the owner or operator, the occupant may request a refund directly from the Division of Taxation by filing Form A-3730 , Claim for Refund.

If an up-front written agreement exists between the parties for a rental of 90 consecutive days or more, the owner or operator is not required to charge the fees/taxes on the occupancy. However, if the occupant vacates the residence in less than 90 days, the fees/taxes are due for the full occupancy period.

Example 1
An airline enters into a written contract with a transient accommodation for the continuous occupancy of five rooms for use by its flight crews for a period of one year. The owner or operator is not required to charge the fee/taxes on the occupancy of the five rooms. This is true regardless of whether the flight crew actually occupies the five rooms all 365 days. As long as the rooms are kept available for the flight crews on an ongoing basis during the contract period, and the airline paid for the rooms, the permanent resident exemption applies.

Example 2
A corporation reserves and pays a transient accommodation four times during the year for use by its out-of-state employees. Because the corporation has not entered into a written agreement for continuous occupancy, the fee/taxes are due on the charges for the occupancy. The corporation’s employees occupy the residence for a total of 100 days. Although the corporation paid for over 90 days of occupancy throughout the year, the corporation is not eligible for a refund. The 90-day time period cannot be established by aggregating the total number of days that the corporation has reserved and paid for occupancies. The corporation can only qualify for a refund of the fee/taxes for any stay that was for a continuous period of 90 days or more.

Example 3
A couple stays at a transient accommodation with no written agreement as to the duration of the stay. Once the occupancy reaches 90 days, the owner or operator ceases to charge the fee/taxes and the couple may apply to the owner or operator of the residence, or to the Division for a refund of the fee/taxes paid on the first 90 days.

Last Updated: Friday, 10/02/20