AN 94(8)

Rulings And Administrative Pronouncements Obsolete By Legislative Changes Affecting The Room Occupancy Tax

PURPOSE: The purpose of this Announcement is to identify rulings or administrative pronouncements that, while valid when issued, should no longer be relied upon. The Department will declare a ruling or pronouncement to be "obsolete" where, because of changes in the law on which a ruling or pronouncement was based or because a position that was taken in a ruling or pronouncement has been addressed in a subsequently promulgated regulation, the ruling or pronouncement is no longer considered authoritative and should not be relied upon for future transactions. By declaring a ruling or pronouncement to be obsolete, the Department intends to eliminate unnecessary research and to reduce the possibility of erroneous decisions by taxpayers and tax practitioners. The fact that a ruling or pronouncement is "obsolete" does not affect its past validity or its application to past transactions.

"OCCUPANCY": In 1991, the General Assembly amended the definition of "occupancy" to clarify that on or after October 1, 1991 the term meant the use or possession of any room or rooms in a hotel or lodging house "for the first period of not exceeding thirty consecutive calendar days." (See 1991 Conn. Pub. Acts 3, §106 (June Spec. Sess.), amending Conn. Gen. Stat. §12-407(19).) Accordingly, Ruling No. 91-20, which held that occupancy that is subject to the room occupancy tax has occurred where the use or possession of a hotel room exceeds thirty consecutive days, is no longer considered determinative with respect to transfers of room occupancy occurring on or after October 1, 1991, because the position taken in the ruling has been incorporated in a subsequently enacted law.

RATE INCREASE: In 1991, the General Assembly increased the rate of the room occupancy tax from 8% to 12% for transfers of room occupancy occurring on or after October 1, 1991. (See 1991 Conn. Pub. Acts 3, §§111 and 113 (June Spec. Sess.), amending Conn. Gen. Stat. §§12-408 and 12-411.) Accordingly, TSSN-21 is no longer considered determinative with respect to transfers of room occupancy occurring on or after October 1, 1991.

EFFECT OF THIS DOCUMENT: An Announcement is a document that alerts taxpayers to important information. Such information may involve new Department administrative policies or procedures.

EFFECT ON OTHER DOCUMENTS: The above-listed ruling and TSSN are obsolete.

PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Website.

Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.

AN 94(8)
Room Occupancy Tax
Issued: 7/28/94