Case text for 200-302b, The Hilton Hotels Corp., d.b.a. The Netherland Hilton Hotel v. Bowers-- Sales and use taxes-- Exemptions can be access online.
Case brief introduction:
Sales and use taxes: Exemptions.– Since the rental of hotel rooms was made subject to the sales tax beginning July 1, 1959, the question arises as to what items bought by a hotel on and after this date qualify for the exemption accorded items purchased for resale. Tangible personal property that a hotel buys for resale to its guests, by way of rental, is within the scope of this exemption only if it is resold in the same form in which it was purchased. Consequently, furnishings and equipment for the accommodation of guests in their rooms are exempt, such as, chairs, desks, dressers, tables, mattresses, pillows, blankets, lamps, television sets, ash trays, pitchers, and waste baskets. In addition, consumable supplies placed in rooms for guests' use are exempt, such as, sheets, pillow cases, towels, bath mats, blotters, soap, tissues, books, pens, matches, hangers, glasses, postcards, and light bulbs.
If, however, personalty purchased by a hotel loses its status as a chattel when it is installed in the room and becomes so attached to the building as to become a fixture, this exemption does not apply. The reason for this result is that the item is not resold to guests in the same form in which it was purchased by the hotel. Examples of fixtures include commodes, faucets, light fixtures and wall paper.