ST 1995-01 - Bed and Breakfast - December, 1995
The purpose of this information release is to reiterate the
Ohio Department of Taxation's position on the application of
the sales tax on sales made by bed and breakfast (B
& B) operations.
Section 5739.01 (M) of the Ohio Revised Code (O.R.C.) defines
a hotel as:
"... every establishment kept, used, maintained, advertised
or held out to the public to be a place where sleeping
accommodations are offered to guests, in which five or more
rooms are used for the accommodation of such guests,
whether such rooms are in one or several structures."
Section 5739.01 (N) O.R.C. defines transient guests as:
"... persons occupying a room or rooms for sleeping
accommodations for less than thirty consecutive days."
Section 5739.02 (B)(2) O.R.C. states that sales tax does not
"Sales of food for human consumption off the premises where
A B & B with five or more rooms
available to transient guests is considered a "hotel" and
sales tax is applicable to the total amount charged a
transient guest for the room and food, regardless of whether
the amount attributed to food is separately stated.
A B & B which has fewer than five rooms
available to transient guests does not meet the definition of
"hotel" and consequently does not have to charge the tax on
the amount attributed to room rental. However, a B & B
would be required to collect sales tax on the amount
attributed to food being consumed on the premises. Since
breakfast is one of the objectives of the B & B customer,
all B & B's should separate the amount attributed to the
room rental and the amount attributed to any meal. If there
is no separation between the two charges, sales tax would be
due on the total amount charged.
If you have any questions regarding this matter, you should
call us at 1-888-405-4039.
OHIO RELAY SERVICES FOR
THE HEARING OR SPEECH IMPAIRED