.23 Room Rentals.

A. A charge for a right to occupy a room or lodgings as a transient guest is subject to tax. The tax does not apply to charges to persons who rent living accommodations on a monthly basis or who are permanent residents. However, all rentals in resort areas for terms of 4 months or less are subject to the tax.

B. Any amount charged or retained by a vendor as a result of the cancellation of a room or lodging is subject to tax. The vendor shall allocate the amount charged or retained between taxable price and tax. This section does not apply to amounts charged or retained by a vendor for the rental of living accommodations to permanent residents or to persons on a monthly basis. This section does apply to amounts charged or retained by a vendor who rents accommodations in resort areas for terms of 4 months or less.

C. Receipts from the rental of banquet and other public rooms and business quarters are not subject to the tax.

D. The tax will apply on the rental of any sleeping room when used both for accommodations and for business purposes.