Inclusion of state luxury tax in room charges triggers expenditure tax applicability but excludes that tax from chargeable expenditure. State levies like luxury tax are included in the definition of room charges when determining whether a hotel's per day room rate meets the statutory threshold for applicability of the Expenditure tax Act; however, those State taxes, while counted toward the room charge threshold, are excluded from the calculation of chargeable expenditure for computing tax under the Act.
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Provisions expressly mentioned in the judgment/order text.
Inclusion of state luxury tax in room charges triggers expenditure tax applicability but excludes that tax from chargeable expenditure.
State levies like luxury tax are included in the definition of room charges when determining whether a hotel's per day room rate meets the statutory threshold for applicability of the Expenditure tax Act; however, those State taxes, while counted toward the room charge threshold, are excluded from the calculation of chargeable expenditure for computing tax under the Act.
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