(1) A user of a lodging unit in a hotel, motel, hostel, public lodging house, or bed and breakfast facility, whose ADAC is greater than 60 percent of the allowable state reimbursement is required to pay the lodging facility sales and use tax for the use of a lodging unit rented for a period of less than 30 consecutive days. In calculating the ADAC you cannot consider double occupancy rates, coupon discount rates, or other promotional rates.

(a) For example - A facility that has 40 units advertises the following rates:

(i) 10 units with one king bed rents for:

$45.00 per night for single occupancy (one person);

(ii) 30 units with two queen beds rents for:

$39.00 a night for single occupancy (one person);

(iii) ADAC calculation:

10 units rent for $45.00/night = $ 450.00

30 units rent for $39.00/night = $ 1,170.00

Total rate charged for all rooms = $ 1,162.00

divided by number of unit 40 = $ 40.50 ADAC

(iv) Allowable state reimbursement $ 35.00

7 percent Lodging Facility Sales and Use Tax $ 2.45

Total $ 37.45

60 percent of allowable state reimbursement $ 22.45

(b) The ADAC rate of $40.50 is more than $22.45 (60 percent of the allowable state reimbursement), therefore the user is not exempt from paying the lodging facility sales and use tax.

(2) A user of a lodging unit in a resort, condominium, inn, dude ranch, guest ranch, and vacation rental is required to pay the lodging facility sales and use tax for the use of a lodging unit rented for a period of less than 30 consecutive days.

(3) A user of a lodging unit in the outfitting industry is required to pay the lodging facility sales and use tax for the use of a lodging unit in a permanent structure rented for a period of less than 30 consecutive days.

(4) A user of a lodging unit in a campground is required to pay the lodging facility sales and use tax for the use of a lodging unit rented for a period of less than 30 consecutive days.

(5) A user of a lodging unit in a nonprofit or religious organization's facility that is not primarily used for camping by youth under 18 years of age, is required to pay the lodging sales and use tax for the use of a lodging unit rented for a period less than 30 consecutive days.

(6) A user of a lodging unit in a dormitory is required to pay the lodging facility sales and use tax for the use of a lodging unit rented for a period of less than 30 consecutive days when the user is not enrolled in a regular academic program or a program of continuing education.