Opinion Letter

Letter Number:O-1999-021
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Hotel rooms rented for more than 28 consecutive days by a single business.
Approval Date:12/21/1999

Office of Policy & Research

December 21, 1999


Thank you for your letter that we received earlier this month. In it, you ask for a ruling that hotel rooms rented for more than 28 consecutive days by a single business are exempt from sales tax. Please be advised that this is not the law. Such hotel room rentals are not exempt from Kansas sales tax. While there had been an exemption for such long term rentals, the exemption was repealed in 1992. The strike-throughs in the 1992 session laws show the repeal:

This means that companies have not been exempt from paying sales tax on their long term hotel room rentals since 1992. Accordingly, hotels and motels should charge state and local sales tax on hotel sleeping room rentals regardless of the length of the stay.

Please note that the 28 day rule in still in place for transient guest tax. See K.S.A. 1998 Supp. 12-1692, and K.S.A. 1998 Supp. 12-1696. These statutes provide: “‘Transient guest’ means any person who occupies a room in a hotel, motel or tourist court for not more than 28 consecutive days.” These statutes make long term rentals exempt from transient guest tax but subject to Kansas state and local sales tax.

I hope this letter answers your questions and adequately explains the law. If not, please call me to discuss this matter further. Attorney/Policy & Research

Date Composed: 04/11/2000 Date Modified: 10/10/2001