TN 9 (02-98)

A. POLICY - GENERAL RULE

Payments for the use or occupancy of rooms or other space are not rentals from real estate and are usually considered to be SEI where services are also rendered to the occupant for:

• the use or occupancy of rooms or other quarters in hotels, boarding houses, or apartment houses furnishing hotel services; or

• the use or occupancy of space in parking lots, warehouses, or storage garages.

B. POLICY - WHEN APPLICABLE

The rule applies when the services:

• rendered are of such a substantial nature as to affect materially the amount charged for the premise and facilities;

• are primarily for the convenience of the occupant;

• are not primarily for the protection or maintenance of the property.

C. KINDS OF SERVICES - CONVENIENCE OF THE OCCUPANT

The following are kinds of services furnished primarily for the convenience of the occupant;

• making beds;

• furnishing linens and towels;

• dusting and cleaning the space and its furnishings;

• providing swimming pools;

• providing tennis courts.

D. KIND OF SERVICES - PROTECTION OR MAINTENANCE OF PROPERTY

The following are kinds of services for the protection or maintenance of property:

• furnishing heat, light and water;

• painting;

• collecting trash and garbage;

• cleaning common areas.

E. REFERENCES

SSR-85-18

SSR 86-12