LR 8351
Taxability of Campground Rentals
April 30, 2025
Dear Mr. Applicant:
This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated March 12, 2025.
The facts as presented in your letter ruling request are summarized as follows:
Applicant operates a campground and rents canoes to the public in Missouri. Applicant charges sales tax on short-term daily tent camping, at RV sites, and at cabins. Applicant also collects sales tax on sales of snacks, refreshments, and camping supplies. Applicant pays sales tax to vendors when it purchases canoes for rental to customers.
Should Applicant charge sales tax to individual non-business customers who contract in advance and occupy cabins for more than thirty days?
RESPONSE 1:
No. Sales tax is not due on rentals to individual non-business customers who contract in advance and occupy cabins for more than thirty days. Permanent residents are those who contract to rent lodging for thirty consecutive days or more and actually stay that time.
Although lodging is generally treated as subject to sales tax, 12 CSR 10-110.220 creates an exemption for lodging of permanent residents. A permanent resident is “an individual who contracts in advance for a room for a period of thirty consecutive days or more and who actually remains a guest for thirty consecutive days or more” and is not a business. The cabins offered by Applicant are similar to hotels and motels under 12 CSR 10-110.220 because they provide rooms to customers. Applicant’s customers are permanent residents because they contract for and actually stay for thirty days or more and are not businesses. As permanent residents they are not subject to sales tax.
ISSUE 2:
Should Applicant charge sales tax to individual non-business customers who contract in advance and occupy camping sites and RV sites for more than thirty days?
RESPONSE 2:
Yes. Applicant should charge sales tax to individual non-business customers who contract in advance and occupy camping sites and RV sites for more than thirty days.
The exemption discussed in Response 1 applies to rooms that are rented to individuals who contract and stay in a room for more than 30 days. Camping sites and RV sites are not rooms, so the exemption in 12 CSR 10-110.220 does not apply. Therefore, Applicant should collect sales tax on the rentals of camping sites and RV sites, even if contracted in advance for more than 30 days.
This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals. If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change. For this reason, the interpretation set forth above should be reviewed on a regular basis. Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.
Should additional information be needed, please contact Senior Counsel Kent L. Brown, General Counsel’s Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Trish Vincent