TSSN-44

Special Notice Concerning Rental of Meeting Rooms

This Special Notice pertains to hotels, motels, restaurants, banquet halls and other retail establishments that have meeting rooms or banquet rooms available for rent in the regular course of business and provide meals or arrange with a third party for the sale of meals. This Special Notice does not refer to the rental of lodging rooms which are subject to the Room Occupancy Tax.

Rental of Meeting Rooms With and Without Meals

Connecticut Sales and Use Taxes do not apply to the rental of a room for a conference, meeting, seminar or other similar event. However, if meals are served or consumed in the room, either table service or buffet style, the room is considered to be a banquet facility* and the charge for the room as well as the charge for the meals is subject to the Sales and Use Taxes.

Rental of Multiple Rooms

Where more than one room is rented for use by the same guests attending the same social function at which meals are served, such as rooms for meals, dancing, socializing, receptions, and cocktails, the total charge for the meals and the charge for each room are subject to Sales and Use Taxes. However, where one room is used for a meeting, conference or seminar and a separate room is used for the service of meals, the charge for the meals and room in which the meals are served is subject to Sales and Use Taxes, but the charge for the meeting room where no meals are served is not subject to Sales and Use Taxes if the charge is separately stated and reasonable. A reasonable charge is one based upon the prevailing rate in the area.

Required Purchase of Meals with Rental

Where a retail establishment will not rent a room or rooms unless meals are purchased, the total charge for each room and the charge for the meals are subject to Sales and Use Taxes even if a meeting, conference or seminar is held in a room in which meals are not served.

Catered Events

Where a room is rented without a meal by a retail establishment that does not sell meals nor arrange for the sale of meals and a third party caterer is hired to provide the meal service, the charge for the room rental is not subject to Sales and Use Taxes. However, if a caterer rents a room where the meal is being served and bills the client for the room rental as part of the total charge for the meal, then the total charge for the catered event, including a separately stated room rental charge, is subject to Sales and Use Taxes.

*Providing a self-service table of nonalcoholic beverages and snack items for those attending a meeting, conference, seminar or other business function does not represent the use of the room as a banquet facility. Although the charge for the beverages and snack items is taxable, the charge for the room is not subject to Sales and Use Taxes unless meals are also served.

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

TSSN-44 (new 2/91)