§ 12.20.025. Operators exempt from collecting the tax and/or other specified requirements.

A.

When qualified for exemption in accordance with this subsection, an operator exempt from federal income taxation under 26 USC § 501(c)(3), whose income from room rents is not unrelated business taxable income under 26 USC § 512, is exempt from collecting the tax levied by this chapter.

1.

An operator qualifies for exemption under subsection A. of this section by registering as an operator under section 12.20.030, and presenting evidence satisfactory to the chief fiscal officer that the United States Internal Revenue Service has determined that the operator is exempt from federal income taxation under 26 USC § 501(c)(3), and its income from room rents is not unrelated business taxable income under 26 USC § 512.

2.

An operator that has qualified for exemption under this section shall report to the chief fiscal officer in writing any final determination by the United States Internal Revenue Service affecting or revoking the operator's exemption under 26 USC § 501(c)(3) within 30 days after receiving notice thereof.

B.

An operator who exclusively rents or offers to rent a room or rooms solely as the non-transient residence of the occupant for 30 or more consecutive days shall be exempt from the requirements of this chapter for obtaining and displaying a certificate of registration, collecting the tax levied and filing tax returns.

C.

A hostel shall be exempt from the requirements of this chapter for collecting the tax levied, providing security for fiduciary performance, and filing tax returns.

(AO No. 84-40; AO No. 96-103, § 1, 4-1-97; AO No. 2003-102, § 4, 7-15-03; AO No. 2012-105(S), § 3, 13, 12-18-12)