Rule No. : RULE TITLE :
12A-1.0615: Hotel Rewards Points Program

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 36 No. 40, October 8, 2010 issue of the Florida Administrative Weekly.

In response to public written comments received by the Department and made a part of the public hearing held February 8, 2011, subparagraph (3)(c)1. of proposed Rule 12A-1.0615, F.A.C. (Hotel Reward Points Programs), has been changed to replace “subsequent calendar year” in the last sentence with “current calendar year,” and proposed subparagraph (d)1. of that rule has been changed to replace the initial “year” with the initial “twelve months,” so that when adopted, those subparagraphs will read:

(c) Calculation of Taxable Reimbursements for Periods Other than a Hotel’s Initial Year of Participation.

1. Each January, a hotel must determine the percentage to be applied to reimbursements received during the subsequent calendar year using the following calculation:

Total Reimbursements Received in Prior Calendar Year – Total Contributions Paid in Prior Calendar Year

÷ Total Reimbursements Received in Prior Calendar Year

= Percentage to be Applied to Reimbursements Received in Current Calendar Year

If the resulting percentage is zero or less, then no transient rental tax is due on reimbursements received in the current calendar year.

(d) Calculation of Taxable Reimbursements for a Hotel’s Initial Twelve Months of Participation in a Reward Points Program

1. At the end of a hotel’s initial twelve months of participation in a reward points program, the hotel must determine the percentage to be applied to reimbursements received during the initial twelve months of participation using the following calculation:

Total Reimbursements Received During the Initial Twelve Months – Total Annual Contributions Paid During the Initial Twelve Months

÷ Total Reimbursements Received During the Initial Twelve Months

= Percentage to be Applied to Reimbursements Received in the Initial Twelve Months

If the resulting percentage is zero or less, then no transient rental tax is due on reimbursements received in the initial twelve months of participation.