830 CMR: DEPARTMENT OF REVENUE
830 CMR 62C.00: STATE TAX TAXATION
830 CMR 62C.00 is hereby repealed and replaced with the following:
830 CMR 62C.16.1: Room Occupancy Tax Returns and Payments

(1) Statement of Purpose; Effective Date.

(a) Statement of Purpose. The purpose of 830 CMR 62C.16.1 is to explain the procedures prescribed by the Commissioner, pursuant to M.G.L. c. 62C, §16(g), for payment of room occupancy excise liabilities imposed by M.G.L. c. 64G.

(b) Effective Date. 830 CMR 62C.16.1 will be effective January 1, 1998.

(2) Definitions. For the purpose of 830 CMR 62C.16.1, the following terms shall have the following meanings:

Commissioner, the Commissioner of Revenue or the Commissioner's duly authorized representative.

Occupancy, the use or possession, or the right to the use or possession, of any room or rooms in a bed and breakfast establishment, hotel, lodging house or motel designed and normally used for sleeping and living purposes, or the right to the use or possession of the furnishings or the services and accommodations, including breakfast in a bed and breakfast establishment, accompanying the use and possession of such room or rooms, for a period of ninety consecutive calendar days or less, regardless of whether such use and possession is as a lessee, tenant, guest or licensee.

Occupant, a person, who, for a consideration, uses, possesses or has a right to use or possess, any room or rooms in a bed and breakfast establishment, hotel, lodging house or motel under any lease, concession, permit, right of access, license or agreement.

Operator, any person operating a bed and breakfast establishment, hotel, lodging house or motel in the commonwealth including, but not limited to, the owner or proprietor of such premises, the lessee, sublessee, mortgagee in possession, licensee or any other person otherwise operating such bed and breakfast establishment, hotel, lodging house or motel.

Person, an individual, partnership, trust or association, with or without transferable shares, joint‑stock company, corporation, society, club, organization, institution, estate, receiver, trustee, assignee, or referee, and any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals acting as a unit.

Rent, the consideration received for occupancy valued in money, whether received in money or otherwise, including all receipts, cash, credits and property or services of any kind or nature and also any amount for which credit is allowed by the operator to the occupant without any deduction therefrom whatsoever.

Tax, the excise imposed under M.G.L. c. 64G.

Taxable period, any period for which a room occupancy excise return is due under 830 CMR 62C.16.1.

(3) General Rule. The Massachusetts room occupancy excise is an excise imposed upon the transfer or occupancy of any room or rooms in a bed and breakfast establishment, hotel, lodging house, or motel in Massachusetts by any operator at the rate of 5.7% of the total amount of rent for each such occupancy. In addition, each Massachusetts city and town may impose an additional surtax of up to four percent on the total amount of rent. The room occupancy excise is not imposed if the total amount of the rent charged is less than fifteen dollars per day. G.L. c. 64G, §§ 3, 3A; St. 1969, c. 546, §22. Generally, the room occupancy excise is collected by the operator from the occupant and the operator then remits the excise to the Commissioner, using the Form RO series of returns. The filing and payment schedule for such operators is provided in 830 CMR 62C.16.1(4), below.

(4) Filing and Payment Schedule for Operators. As of January 1, 1998, every operator required to file a room occupancy excise return under M.G.L. c. 62C, §16(g), must file a room occupancy excise return and pay the tax due for each calendar month on or before the twentieth day of the following calendar month.

(5) Administrative Provisions.

(a) Penalties.

1. Penalty for failure to file timely. A penalty is imposed for failure to file a room occupancy excise return on or before the due date of the room occupancy excise return or within any extension of time for payment granted by the Commissioner. The penalty is 1% of the amount of tax required to be shown on the return, computed for each month or fraction of a month during which the failure continues, not exceeding in the aggregate 25% of that amount. In computing the penalty for failure to file timely, the amount of tax required to be shown on the return will be reduced by the amount of any part of the tax which was paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return.

2. Penalty for failure to pay timely. A penalty is imposed for failure to pay the room occupancy excise on or before the due date of the room occupancy excise return or within any extension of time for payment granted by the Commissioner. The penalty is ½ of 1% of the amount of unpaid tax shown on the return, for each month or fraction of a month during which the failure continues, not exceeding in the aggregate 25% of that amount. In computing the penalty for failure to pay timely, the amount of tax shown on the return will be reduced by the amount of any part of the tax which is paid before the beginning of that month.

3. Penalty for failure to pay assessment timely. A penalty is imposed for failure to pay an assessment of room occupancy excise not reported on a room occupancy excise return, within thirty days following the date of the Notice of Assessment by the Commissioner. The penalty is ½ of 1% of the amount of the unpaid assessed tax for each month or fraction of a month during which the failure continues, not exceeding in the aggregate 25% of that amount.

(b) Interest. Any portion of the room occupancy excise that is not paid on or before the due date of the room occupancy excise return will have added to it, interest from the due date of the return to the date the tax is paid at a rate prescribed by M.G.L. c. 62C, § 32.

(6) Convention Center Financing Fee. In addition to the state and local option room occupancy excises, effective January 1, 1998, a convention center financing fee of 2.75% is imposed on the transfer of room occupancy by any operator of a hotel, motel or other lodging establishment in Boston, Cambridge, Springfield or Worcester. St. 1997, c. 152, § 9. The provisions of this regulation shall also apply to the convention center financing fee.

REGULATORY HISTORY
Date of Promulgation: 12/4/80
Amended: 4/2/81
Amended: 9/3/81
New Regulation Promulgated: 3/20/98