HI SR110

Requests the Tax Review Commission to analyze whether the sublease deduction can be applied to hotel operators in the same manner as other subleased real estate.

Addresses a Department of Taxation position that the sublease deduction cannot mitigate tax pyramiding where hotel operators pay rent to landlords and guests pay room charges to operators, despite both representing charges for the same real estate occupancy.

Directs the Tax Review Commission to report findings and recommendations to the Legislature no later than twenty days before the convening of the 2017 Regular Session.

References previous Tax Review Commissions (1989, 1995) and legislation (Acts 353, 70, 71, and 198) that identified and attempted to address general excise tax pyramiding issues.