YHT Realty Corp., Inc. Is an Operator of a Hotel Subject to Fixed and Percentage Taxes

February 6, 1984 BIR RULING NO. 027-84 205-A-000-00-027-84 Gentlemen : This refers to BIR Ruling No. 089-79 dated September 12, 1979 to the effect that your client, YHT Realty Corporation, owner/operator of Tropicana Apartments-Hotel is considered an operator of an apartment subject only to the real estate dealer's fixed tax prescribed in Section 192(3)(aa) of the Tax Code. In connection therewith, I have the honor to inform you that investigation conducted by this Office disclosed that Tropicana Apartments-Hotel is housed in a nine (9)-storey concrete building composed of some 98 rooms; that it has a swimming pool, parking space and a reception area; that its bedroom apartment is complete with a living room with furniture and fixture, telephone and a television set; that there is a dining table and a kitchen containing a refrigerator, stove and some kitchen utensils; that beds are provided in the bedrooms with air-conditioner and has a separate toilet and bath facilities; that electric bills are to be shouldered by the tenants; and that the rental charge is monthly and a 10% charge on rental is being added for cleaning and linen services which are being undertaken by L.K. Services and Maintenance, Inc. In other words, Tropicana Apartments-Hotel are furnished and equipped for ready occupancy and use by your guest just like any hotel. Accordingly, this Office believes and holds, that your client, YHT Realty Corporation, Inc. is an operator of a hotel subject to the fixed and percentage taxes prescribed in Section 192(1) and 205-A of the Tax Code, as amended. This revokes BIR Ruling No. 089-79 dated September 12, 1979. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner