§ 38.2. Exemptions.
(a) Permanent residents. A permanent resident defined in § 38.3 (relating to definitions), is excluded from Hotel Occupancy Tax liability upon the occupancy of any room or rooms in a hotel for any rental period during which, or at the expiration of which, he is or becomes a permanent resident. This exclusion does not apply, however, to the purchase of meals or any other taxable purchase which may be made by a permanent resident.
(b) Ambassadors, ministers and consular officers of foreign governments. Ambassadors, ministers and other diplomatic representatives of foreign governments properly accredited to the United States, are exempt from tax upon their occupancy of rooms. This exemption does not apply to consular officers or to officers of foreign governments other than those specified in this section, unless such exemption arises from treaties or reciprocal agreements existing between such foreign governments and the United States.
(1) A person claiming exemption from the tax under this subsection is required to apply in writing therefor to the Bureau of Accounts Settlement, Department of Revenue, Harrisburg, Pennsylvania, Attention: Exemption Unit. Ambassadors, ministers and other diplomatic representatives of foreign governments should submit written proof that they are properly accredited to the United States. Consular officers and officials of foreign governments should submit written proof of the treaty or agreement under which similar exemption is granted by their country to consular officers and officials of the United States together with proof that such treaty or reciprocal agreement is presently in effect and that they are an officer or official entitled to prerogatives thereunder. If exemption has already been accorded under the sales and use tax portion of the TRC the numbered identification card is valid for hotel occupancy tax purposes.
(2) If the request for exemption is approved, a numbered identification card will be issued to the applicant. This card shall be shown by the exempt occupant to the hotel operator whenever a claim for exemption is made.
(c) Occupancy of hotel rooms by United States Government. Occupancy of hotel rooms by the United States Government shall be exempt from tax in accordance with the following:
(1) Occupancy of rooms by the Government of the United States, or its agencies, or by an employe or representative of the Government of the United States or its agencies, when the occupancy is solely for official purposes and the rent is paid by the Government of the United States or its agencies, is exempt from tax.
(2) Occupancy of rooms by National Banks, Federal Savings and Loan Associations, Joint Stock Land Banks, National Park Commissioners, or their employes or representatives, or by Federal licensees such as warehouses, stockyards, construction contractors engaged in the improvement of real estate owned by a Federal agency, or similar corporations, companies, institutions, or persons, or their employees or representatives, regardless of the purpose of the occupancy, is not exempt from the Hotel Occupancy Tax. Members of the Armed Forces are not exempt from tax upon occupancy of rooms unless acting as authorized representatives of the Government of the United States or one of its agencies and are otherwise entitled to exemption under the provisions of paragraph (1).
(d) Occupancy of hotel rooms by other exempt entities. Occupancy of rooms, the charges for which are billed to and paid by the following organizations, shall be exempt from tax. Charges paid by employes or other agents of these organizations shall be subject to tax even though the employe or agent is reimbursed by the exempt organization:
(1) Federal Credit Unions organized under the provisions of the Federal Credit Union Act (12 U.S.C.A. § § 1751—1795k).
(2) Commonwealth credit unions formed and incorporated under Credit Union Act (15 P. S. § § 12301—12333).
(3) Public authorities created under the act of June 28, 1935 (P. L. 463) and the Municipal Authorities Act of 1945 (53 P. S. § § 301—322).
(4) Co-operative agriculture associations required to pay corporate net income tax under the provisions of the Co-operative Agricultural Association Corporate Net Income Tax Act (72 P. S. § § 3420-21—3420-30).
(5) Electric cooperative corporations formed under the Electric Cooperative Corporation Act (15 P. S. § § 12401—12438).
(6) Another organization claiming an exempt status under a particular statute shall make application to the Bureau of Sales and Use Tax, Attn: Legal Division) for approval to use the exemption.
(e) Records of exempt occupancies. The hotel operator shall maintain records to support and identify exempt occupancies. Exemption certificates, letters of exemption, direct payment permits and other documents relating to exemptions from tax issued under the provisions of the sales and use tax portion of the TRC or regulations promulgated thereunder, are of no force and effect with respect to the tax imposed by the hotel occupancy tax portion of the act with the exception noted in subsections (b) and (d).
(f) Others not exempt. No person or entity other than those referred to in this section may be exempt from the Hotel Occupancy Tax. Occupancy by employes or representatives of the Commonwealth, its instrumentalities or political subdivisions, is not exempt from hotel occupancy tax, regardless of the nature of the business upon which the employee or representative is engaged, and regardless of the identity of the person or agency paying for the occupancy. Occupancy by employes or representatives of State credit unions is not exempt from the tax. Exemption from the sales and use tax portion of the TRC granted to persons, organizations or institutions, including exemptions granted to religious organizations, charities, educational institutions and the like, are not applicable to the Hotel Occupancy Tax, and those persons, organizations or institutions are required to pay tax upon their occupancy of hotel rooms.
Source The provisions of this § 38.2 amended through October 24, 1975, effective October 25, 1975, 5 Pa.B. 2844.
Notes of Decisions It was improper for the Department to collect State hotel occupancy taxes from Sheraton Hotel guests who were on official United States government business, and it was not necessary that the United States government be billed directly as opposed to the employes paying themselves and receiving reimbursement from the government. Egner v. Commonwealth, 557 A.2d 1157, 1159 (Pa. Commw. 1989).
Cross References This section cited in 61 Pa. Code § 38.1 (relating to imposition of computation of tax); 61 Pa. Code § 38.3 (relating to definitions); and 61 Pa. Code § 38a.1 (relating to scope and application of Chapter 38—Hotel Occupancy Tax—statement of policy).
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