North Carolina has issued a letter ruling stating that hotel stays over 90 days are exempt from state sales tax even if the guest checks out and immediately checks back in over that period in order to take advantage of a discount. The hotel operator offers guests who stay 30 consecutive days a discount. The discount can be used once per stay. In order to take advantage of the discount numerous times, a guest staying at the hotel for 120 days will check out and immediately check back in every 30 days. Throughout this process, the guest does not vacate their hotel room. The North Carolina Department of Revenue stated in the letter ruling that the rental of a hotel room for 120 days is not subject to sales and use tax, even if the guest checks out and checks immediately back in every 30 days. Unless there is a lease or other document that requires a guest to rent the accommodation for 90 or more continuous days, generally a renter in North Carolina will collect sales tax on the gross receipts from the rental until the accommodation has been rented to the person for 90 continuous days. Where sales tax is collected from a person who stays for 90 continuous days, the sales tax collected may be refunded or credited to the person.(North Carolina Private Letter Ruling, August 11, 2017)