Illinois – Hotel Reward Points Program Contributions and Reimbursements Nontaxable

SALT Report 3186 – A hotel franchise has a subsidiary that administers a reward points program.  The Hotel Operator’s Occupation Tax (HOOT)  “is imposed on the gross rental receipts from the renting of hotel room.” The HOOT does not apply when “no gross rental receipts are received from a guest when a complementary room is received by the redemption of reward point…since the gross rental receipts associated with redeemed points are the gross rental receipts that were paid for rooms on which the points were earned.”

For Further Information:              

ST 13-0043-GIL 08/23/2013 HOTEL OPERATORS’ TAX