Directive 06-7, recently issued by the Massachusetts Department of Revenue, explains how room occupancy excise taxes apply to both complimentary and discounted hotel rooms. The room occupancy tax must be collected if all of the following are present: 1) the place in which the complimentary or discounted room is a hotel; 2) there is a transfer of occupancy; and 3) there is consideration for the transfer valued at $15 or more. The tax is computed on the amount actually paid for the room if the hotel receives no benefit beyond the actual rent paid. If the hotel does receive a benefit (direct or indirect) beyond the actual rent paid, the tax is based on the fair market value of the room. (Directive 06-7, Massachusetts Department of Revenue, December 12, 2006)