Class 1 & 6: Extended Stay and Single Room
Occupancy Hotels and Motels
Last Document Review Date: September 29, 2014
Last Legal Review Date: July 18, 2013
TABLE OF CONTENTS
Introduction ......................................................................................... 3
In Scope ..................................................................................... 3
Out of Scope ............................................................................... 3
Executive Summary .............................................................................. 3
Background....................................................................................... 4
Compliance Checklist ............................................................................ 5
Legal Direction ..................................................................................... 6
Classification – General ...................................................................... 6
Classification – Class 6 – Business and Other ........................................ 6
Classification – Class 1 – Residential .................................................... 7
Split-Classification ............................................................................. 7
Form: Hotel Room Occupancy Declaration ............................................ 8
Appendix A: Decisions Concerning Extended-Stay and Single Room
Occupancy Hotels or Motels ................................................................. 10
Stated Cases ................................................................................... 10
Board Decisions ............................................................................... 12
Appendix B: Case Studies Concerning Extended Stay and Single Room
Occupancy Hotels or Motels ................................................................. 18
Scenario 1 ...................................................................................... 18
Facts ........................................................................................... 18
Classification ................................................................................ 18
Scenario 2 ...................................................................................... 18
Facts ........................................................................................... 18
Classification ................................................................................ 19
Scenario 3 ...................................................................................... 19
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Facts ........................................................................................... 19
Classification ................................................................................ 19
Scenario 4 ...................................................................................... 19
Facts ........................................................................................... 19
Classification ................................................................................ 20
Scenario 5 ...................................................................................... 20
Facts ........................................................................................... 20
Classification ................................................................................ 20
Scenario 6 ...................................................................................... 20
Facts ........................................................................................... 20
Classification ................................................................................ 21
Scenario 7 ...................................................................................... 21
Facts ........................................................................................... 21
Classification ................................................................................ 21
Scenario 8 ...................................................................................... 21
Facts ........................................................................................... 21
Classification ................................................................................ 22
Scenario 9 ...................................................................................... 22
Facts ........................................................................................... 22
Classification ................................................................................ 22
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INTRODUCTION
The purpose of this document is to achieve consistent
assessment of extended-stay and single room occupancy
(SRO) hotels and motels throughout British Columbia.
In Scope
These SRO properties are within the scope of this document.
This document also deals with non-stratified hotels and
motels.
Out of Scope
Stratified properties are beyond the scope of this document.
For guidance in relation to stratified accommodation
properties, please refer to Classification of Strata Lots Used
for Short-term Overnight Accommodation (SAPs).
EXECUTIVE SUMMARY
This document provides direction for consistent classification
of an accommodation property that is used for both shortterm overnight accommodation and monthly rental.
The key issue is determining whether a property is a “hotel”
and also whether certain rooms in a property are merely used
for long-term accommodation or are exclusively dedicated for
this use for a 12-month period ending October 31, in order to
be classified in whole or in part as Class 1 – residential.
1. In order to divide the classification between Class 1 and Class
6 – business and other, a property must not be operating
wholly as a hotel or motel.
2. If a property is operated exclusively as a hotel or motel (i.e.,
with short-term accommodation available for all rooms), the
property should be classified as Class 6 only except for any
portion that is used by the manager for his or her residence.
3. Where properties that have rooms dedicated exclusively for
monthly rental for the 12-month period ending October 31
the classification of the property will be split between Class 1
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and Class 6, with Class 1 for the rooms that are so dedicated
and Class 6 for the rooms that are not.
Background
Properties in Class 1 include properties that are used
residentially. Section 1(a)(i) in B.C. Regulation 438/81, the
Prescribed Classes of Property Regulation, specifically
excludes from Class 1 “hotels or motels other than the portion
of the hotel or motel building occupied by the owner or
manager as his or her residence”. The first step in classifying
a hotel or motel, therefore, is to determine whether the
property in question is a hotel or motel. This document
provides criteria for making this determination.
Once it has been determined that a property is a hotel or
motel, the next step is to consider whether all or part of it has
been exclusively dedicated for monthly tenancy as opposed to
daily or weekly rental. Dedicated monthly rooms are deemed
to be unavailable for daily or weekly rental at anytime. If a
portion of a property has been dedicated for monthly rental,
then that part of the hotel or motel will qualify for
classification as Class 1 because that portion of the property
is not a hotel or motel for a 12-month period ending October
31. October 31 is the date for determination of a property's
classification.
Section 10 of B.C. Reg. 438/81 provides the authority to the
assessor to split the classification of a property where the
property falls into two or more classes, which in this case
would be Class 1 and Class 6.
See Appendix A for relevant case summaries.
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COMPLIANCE CHECKLIST
The following is a list of items that must be completed in
order to be considered compliant with this document:
1. Where a non-stratified property is used exclusively as a hotel
or motel, it must be placed entirely in Class 6; except for any
portion used by the manager for his/her residence.
2. Where a non-stratified hotel or motel is being used for
monthly rentals, or both short-term overnight
accommodation and monthly rentals, and has rooms that are
dedicated exclusively for monthly rental for the 12-months
period ending October 31, the classification must be split
between Class 1 and 6 according to the guidelines set out in
this document.
3. Common areas should be classed based on the split based on
the rest of the non-stratified hotel or motel unless it can be
determined that the area is used or set aside for the
exclusive use of either Class 1 or Class 6 purposes.
4. Portions of these non-stratified hotel or motels that are used
by individual tenants' ancillary to their accommodations
should be classed consistent with the unit to which they are
ancillary.
5. Occupancy information to support classification of SRO rooms
dedicated for short/long-term rental should be collected
annually (cover letter and form).
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LEGAL DIRECTION
Classification – General
This document applies to non-stratified hotels and motels.
Wherever the phrases “hotels and motels” or “hotels or
motels” appears, it must be read as applying to non-stratified
properties.
Hotels and motels are specifically excluded from Class 1. This
suggests that hotels and motels would be considered
residential use without this exclusion. If they were not, there
would be no need to specifically exclude them from Class 1.
In order to divide the classification between Class 1, and
Class 6, a property must not be operating wholly as a hotel or
motel. If a property is operated exclusively as a hotel or
motel (i.e., with only short-term accommodation available),
the property should be classified as Class 6 only except for
any portion that is used by the manager for his or her
residence. However, for properties that have rooms dedicated
exclusively for monthly rental the classification of the
property will be split between Class 1 and Class 6, essentially
because the areas that are dedicated exclusively for monthly
rental lose their character as hotel or motel, and are more
analogous to an apartment.
Classification – Class 6 – Business and Other
Class 6 applies to buildings or portions of buildings having two
or more of these indicators of operation as a hotel/motel
operation:
o Four or more accommodation units
o Short-term room tenures, evidenced by daily or weekly
rates
o Daily control of premises, such as charging for
additional guests, checking of rooms, and requirements
to register guests
o Provision of typical hotel/motel services, such as front
desk operations, guest registered, dining rooms or
cafés, daily linen and maid service or baggage checking
o No separate or identifiable areas designated for longterm accommodation
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o Advertising of rooms offered for daily/weekly rental via
tourist accommodation publications or website
Classification – Class 1 – Residential
Class 1 applies to buildings or portions of buildings that have
the following indicators of residential use:
o Monthly or longer tenancies, offered for a period of 12
months ending October 31 of the year during which the
assessment roll is completed
o Rooms not available at any time for short-term,
transient guests (e.g., daily or weekly rentals)
o Separate, identifiable area dedicated for residential use
(as opposed to regular short-term rental rooms used for
monthly rental purposes on an ad hoc basis).
In addition, the following indicators may also support a
finding of residential use:
o Limited control of premises (e.g., no requirement to
register guests, infrequent checking of rooms)
o Limited guest services (e.g., little or no front desk
operations)
NOTE
The above list is not necessarily exhaustive.
Split-Classification
In the case of a hotel/motel, if a portion of it has been
dedicated for monthly tenancy for a 12-month period ending
October 31, that portion can be classified as Class 1. It is not
appropriate to split the classification of property where part of
the property is merely used for monthly tenancies, if those
areas are still operated as a hotel/motel at other times during
a 12-month period ending October 31. In this case, those
areas will continue to qualify as Class 6. In order for areas to
qualify for Class 1, they must be dedicated exclusively for
monthly rental during a 12-month period ending October 31.
In terms of common areas of buildings, if it can be
determined that the area is used exclusively for Class 1
purposes or Class 6 purposes (or the area is set aside
exclusively for one or the other use) then it should be classed
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respective to the classification of the building. However, in
any situation of doubt, a common area (i.e., storage room)
should be split based on the split of the rest of the property.
Portions of properties that are not specifically used for
accommodation, but are used by individual tenants for
purposes ancillary to their accommodation (e.g., parking
stalls or storage lockers) should be classified consistent with
the classification of the accommodation unit to which it is
ancillary. For example, a parking stall that is set aside for use
only by the tenants of rooms dedicated exclusively to
extended-stay purposes should be in Class 1. In order to
make this classification determination, the use of the area
should be identified, typically by way of a sign. Portions of
properties that are available for use by any guest, regardless
of the length of stay, or for any other purpose shall be
classified in the same manner as any other common area of
the subject property.
Form: Hotel Room Occupancy Declaration
The split-classification of a property should be done on the
same basis as the valuation of that property.
Annually, an appraisal assistant should make a request for
occupancy information by sending the Hotel Room Occupancy
Declaration Cover Letter and Form to the owner or manager
of SROs, extended-stay hotels and motels and any hotel or
motel known to have historically been split classified. If there
are multiple owners of the property, the form should be sent
to all owners on title. The form is provided as an optional
method of receiving occupancy information. The provision of
the occupancy information is not optional, but the owner or
manager has the choice of providing a letter detailing the
occupancy information instead of filling out the form. The
form is provided as a customer service initiative, for the
convenience of the owner or manager.
The purpose of the form is to assist BC Assessment (BCA) in
determining the number of rooms dedicated exclusively for
short-term or long-term rental. The form clearly states that
rooms dedicated for monthly rental must be unavailable for
daily or weekly rental at anytime of the year.
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If:
o The assessor has reason to doubt the accuracy of the
information provided in a returned form, or
o The Hotel Room Occupancy Declaration Cover Letter
and Form has not been returned to the area office on or
before October 31 of the year;
then no follow-up letter is required to be sent out, and the
assessor may assess the property in the manner and for the
amount he or she believes to be correct as per section 15(4)
of the Assessment Act (e.g., the assessor can classify the
property as Class 6).
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APPENDIX A: DECISIONS CONCERNING EXTENDED-STAY AND
SINGLE ROOM OCCUPANCY HOTELS OR MOTELS
Stated Cases
1. Hennessy v. Assessor of Area 01 – Capital (1996, Stated Case
367, BCCA)
The subject property was a bed and breakfast operation with
a main guesthouse and ancillary cottages, as well as kayak
rentals and other revenue-raising facilities. The property was
classed as Class 6 except for that part of the guesthouse
occupied by the owner.
HELD: There was evidence before the Board to support its
finding that the guesthouse is a hotel or motel, a portion of
which was occupied by the owners and their family, and was
properly classified Class 6 rather than Class 1.
2. Assessor of Area 04 – Nanaimo/Cowichan v. Hermit Holdings
Ltd. (1995, Stated Case 363, BCSC)
The subject property was corporately owned. The Assessment
Appeal Board found as a fact that the subject property was a
14-unit motel with a manager's suite. The manager's suite
was occupied by a representative of the corporate owner. The
Assessment Appeal Board granted residential classification to
the manager's suite. The assessor appealed on the basis that
only the portion of a motel used by the owner as his
residence could be given a residential classification. The
manager's suite was not occupied by the owner.
HELD: The Assessment Appeal Board found as a fact that the
manager's suite was not part of the motel. Consequently,
section 1(a)(i) of B.C. Regulation 438/81 had not been relied
upon by the Board. In the circumstances there was no
question of law to be decided and the Court had no
jurisdiction to deal with the stated case.
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3. Eugene Mah v. Assessor of Area 09 – Vancouver (1995, Stated
Case 376, BCSC)
The appellant owned a building that had 72 rooms offered for
rental on a daily, weekly or monthly basis. The room rental
rates were set in accordance with the rental allowance for
single recipients of social assistance. The rooms were usually
rented for a month or longer. The building also had a licensed
pub and retail store on the main floor. The appellant
submitted that the building was not a hotel and should be
classified as Class 1.
HELD: The Board held that the building was a hotel due to the
presence of a 24-hour desk clerk, a guest register,
chambermaids and hotel rules. The Board found the entirety
of the property should be classified as Class 6. The Court
agreed with the Board’s decision.
4. St. Helen’s Hotel (Vancouver) Ltd. v. Assessor of Area 09 –
Vancouver (1984, Stated Case 189, BCSC)
At issue was whether or not the residential hotel was
assessable under Class 6, or either Class 8 – seasonal
accommodation or Class 1. The Assessment Appeal Board
held that the subject residential hotel should be classified as
business and other. The appellant appealed by way of stated
case on the grounds that the rooms of the residential hotel
should be classified as either seasonal accommodation or
residential.
HELD:
1. The rooms could not be classified Class 1 since on the facts of
the case the Board had properly held that the operation of
the rooms were such that they were a hotel and hotels are
specifically excluded from the residential classification.
2. That the rooms could not be classified as seasonal resort
pursuant to classification 8(a) because classification 8(a)
covers facilities that have a seasonal business and the
evidence here established that the operation of the premises
were such that there was no "on-season" or "off-season" and
therefore the business could not be found to be seasonal.
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NOTE
Since this decision, Class 8 – seasonal accommodation was
eliminated.
5. C.E. Holdings Ltd. v. City of Vancouver (1975, Stated Case 84,
BCSC)
The subject property was an auto/tourist court type of motel
with several detached cottages, many with housekeeping
facilities. The issue was whether the property was considered
as residential under the Assessment Equalization Act and
particularly, whether it was “used for residential purposes”.
HELD: The adjective “residential” conveys the sense of
dwellings occupied, by one or more persons, for a period of
some time. They are places occupied by residents. A resident
by definition is not migratory. The dictionary sense of the
word “resident” is one who abides in a place and that sense is
contrary to the use made by its transient population of the
property in question.
Board Decisions
1. D B A Shato Inn v. Assessor of Area 09 – Vancouver (2007,
PAAB – refer to as PAABBC 20070249, decision dated August
10, 2007)
The appellant argued that the classification of the subject
property should be predominately residential because his
property is an apartment. He argued that it is not fair that his
assessment is based on the highest and best use (HBU) being
an apartment, but he is being taxed or classified as a hotel.
The assessor contended that the rooms are predominately
rented or available for rent for short-term stays, not longterm stays, and as such, cannot meet the requirements of
residential classification.
HELD: Other than the suites used by the owner/manager the
suites are not used for a residential purpose, but are rented
or available for rent for short-term stays. As such, regardless
of what the operation is called (i.e., the name of the owner of
the property is Shato Inn Apartment Hotel), the suites are
used for hotel or motel purposes, which is for short-term,
overnight accommodation, which is not a residential purpose
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as required by the Regulation. The assessor’s recommended
split between residential and business and other classification
was accepted.
2. Traveller’s Inn Motels v. Assessor of Area 01 – Capital (2005,
PAAB – refer to as 2006 PAABBC 20060505, decision dated
September 15, 2006)
The appellant argued that the classification of the subject
property should be split between Class 1 and Class 6 because
some of the motel was, on occasion, used for extended stays.
The assessor argued that Class 6 was appropriate.
HELD: Some common factors to be considered in finding a
property to be operating as a hotel or motel include:
o No rooms specifically set aside exclusively for monthly
or long-term rental
o Rooms available on a daily or weekly basis
o 24-hour front desk for guest services
o Availability of maid or housekeeping services
o Hotel rules (as distinct from residential tenancy rights)
that guests must accept
o A central phone system
The property offers overnight accommodation on-line without
published restriction relating to the availability of long-term
stay units, and services within the public's customary
expectations of a hotel/ motel. The property has rules that
appear to be designed to keep guests from attracting
residential tenancy rights. The location and design of the
structure are consistent with what is expected of a hotel/
motel. There is no proof that any rooms are set aside
exclusively for long-term accommodation. The business
operating on the property is a hotel or motel.
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3. Gaska v. Assessor of Area 09 – Vancouver (2004, PAAB – refer
to as 2005 PAABBC 20050017, decision dated January 21,
2005)
The lot is 66 feet wide by 131 feet long, and the building
totals 12,969 square feet of apartments and a further 560
square feet of storage, elevator and furnace rooms in the
basement level. The building is comprised of 23 units, with
two reserved for the owner’s use. In total, there are 13
bachelor units and 10 one-bedroom units. There are 17
underground parking stalls. The owner initially operated the
property as a long-term rental property, but after difficulties
with tenants, he converted the property to a hotel. The hotel
operation has declined in recent years, and now six rooms
only are reserved for hotel use, two are used residentially,
and the remainders are not used for anything.
HELD: The assessor has treated the subject property in the
same manner as comparable properties (i.e., the Oceanside
and the Buchan Hotels). All are valued on the income
approach, and each has a portion of their property in the
residential class, based on the portion dedicated to long-term
residential occupation.
4. Hermit Holdings Ltd. v. Assessor of Area 04 –
Nanaimo/Cowichan (2002, PAAB – decision dated February 27,
2003)
This appeal concerned valuation and the correct
apportionment of property classification between Class 1 and
Class 6 for the Holiday House Motel located in the town of
Ladysmith. The improvements, constructed in 1967, consist
of 14 motel units plus a manager's suite.
HELD: The Prescribed Classes of Property Regulation (B.C.
Reg. 438/81) includes in Class 1 those properties used for
residential purposes but excludes those used for motels other
than that portion occupied by the manager as his or her
residence. The parties agree the manager's suite qualifies for
residential classification. They disagree on what area is
actually attributable to Class 1. The Board accepts that the
manager uses one of the units in the motel for personal use
(storage), and that that use is residential use and not
ancillary to any motel use. The Board further finds that even
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occasional storage of motel items would not detract from the
residential use. The Regulation does not stipulate that the
area used by the manager as his or her residence be one
contiguous space. It simply states that to be included in
residential classification the area must be used residentially.
Since the Board finds the use is residential, it is immaterial
whether unit used for personal storage is contiguous to the
balance of the manager's residence. It is the use, and not the
location within the motel property, which determines
classification.
5. Flamingo Enterprises Ltd. v. Assessor of Area 10 –
Burnaby/New Westminster (1998, PAAB)
The operation of the subject property parallels the facts in
Mah. There is a reception desk, rules posted, excessive noise
and pets are not permitted, there was no evidence that there
are cooking facilities or food preservation facilities in the
rooms, the telephone system goes through a central
switchboard, there is maid service based on the length of
occupancy and there is a restriction on guests in the rooms
after 10:30pm.
HELD: Based on the evidence, and relying on the Mah
decision, the Board found the subject property is a hotel for
assessment purposes. Land or improvements or both will be
classified as residential if they are used for residential
purposes, except when specifically excluded by the
regulation. As a hotel, the subject is excluded from residential
classification by the wording of the regulation. Therefore,
regardless of the actual use of the room portion or length of
stay of the occupants, no portion of the subject property can
be classified as residential.
6. Khizanah & Princeton Hotel v. Assessor of Area 09 – Vancouver
(1997, AAB)
The St. Helen’s and Princeton hotels offer rooms for weekly
and monthly rental and 24-hour desk operation.
HELD: Both properties should be classed as Class 6 as they
operated as hotels. The Board also stated that where room
portions are set aside exclusively for monthly rental, those
portions will be classified as Class 1.
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7. Cecil Hotel & Westburg Holdings v. Assessor of Area 09 –
Vancouver (1995, AAB)
The subject property is a hotel; the hotel portion is licensed
as a hotel lobby and the sleeping units, and the services
provided to occupants, are the same or similar to those
founding all hotels.
HELD: The room portion of the Cecil Hotel is a hotel for
assessment purposes, based on its operation as a hotel. Since
Regulation 438/81 in section 1(a)(i) specifically excludes
“hotels or motels other than the portion of the hotel or motel
building occupied by the owner or manager as his or her
residence”, the Board found that the assessor appropriately
classified the subject property in its entirety as Class 6.
8. Shato Inn Mike Gaska v. Assessor of Area 09 – Vancouver
(1994, AAB)
The owner built the inn and he and his wife have managed it
since it opened. They occupy the manager’s suite, a one
bedroom and a bachelor combined into one unit of 870
square feet. They have a license from the city to rent 22
units. In the mid 1980s, the owner converted from 23 units
(nine one-bedrooms and 13 bachelors) to 26 bachelor units,
by removing some kitchens and installing bathrooms. There is
no restaurant or beverage facility. The assessor valued the
manager's suite by allocating a rent value based on the
rentals achieved for similar accommodation in a West End
apartment (Appendix 12, following the zoning by-laws). From
the annual rental, less vacancy and expense allowances, he
concluded a net operating income of $6,111. He calculated
the split between the residential and business classes based
on the contribution of the respective uses to the income of
the whole property. This resulted in a class split of
approximately 5.8 percent residential and 94.2 percent
business and other.
HELD: The Board accepts the assessor’s rental potential and
finds the apportionment to be 7.5 percent residential. Neither
party included income from the manager’s suite in the
potential gross revenue, which, in the Board’s opinion, should
have been included. However, given that neither party
included it nor that it was not discussed at the hearing, the
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Board had no option but to disregard this component of
income and expenses.
9. Schodt and Schodt Enterprises Ltd v. Assessor of Area 13 –
Dewdney/Alouette (1988)
HELD: A motel is a building which provides accommodation to
a transient population, and which is operated with this
purpose in mind. It does not become residential property
because more than 50 percent of its rooms are regularly
rented to persons staying longer than 60 days.
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APPENDIX B: CASE STUDIES CONCERNING EXTENDED STAY AND
SINGLE ROOM OCCUPANCY HOTELS OR MOTELS
Scenario 1
Facts




Has limited amenities; infrequent checking of rooms, no
guest registration.
The majority of the rooms are dedicated for monthly rental
for a 12-month period ending October 31 (excluding the
property manager/owner’s residence).
The remainder of the total number of rooms are offered for
daily or weekly rental.
The rooms dedicated for monthly rental are equipped with
kitchen facilities.
Classification
Rooms that are dedicated exclusively for monthly rental for a
12-month period ending October 31 should be classified as
Class 1. In addition, two or more indicia of residential
classification are satisfied. The rooms in the remainder of the
building rented out daily or weekly should be classified as
Class 6. The property manager/owner's residence should be
Class 1.
Scenario 2
Facts



Operates as a typical hotel with guest registration, checking
of rooms, limitations of number of guests in rooms after a
certain time of day, maid service, baggage checking, front
desk service, etc.
One or more rooms are dedicated exclusively for monthly
rental for a 12-month period ending October 31 (excluding
the property manager/owner’s residence).
The majority of the total numbers of rooms are offered for
daily or weekly rental.
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Classification
The rooms that are dedicated exclusively for monthly rental
for a 12-month period ending October 31 should be classified
as Class 1. In addition, two or more indicia of residential
classification are satisfied. The rooms in the majority of the
building available for rent daily or weekly should be classified
as Class 6. These rooms cannot be classified as Class 1 since
they are used on a short-term basis and are not specifically
set aside for long-term use. The property manager/owners
residence should be Class 1.
Scenario 3
Facts





Fits the description of a SRO hotel or motel, in that the
occupants use rooms as their primary residence.
No rooms are offered for daily or weekly rental.
All rooms are offered for monthly rental for a 12-month
period ending October 31 and are used as such (excluding
the property manager/owner’s residence).
Limited amenities offered to guests.
All rooms are outfitted with kitchen facilities.
Classification
This property is not a hotel or motel. The property should be
classified entirely as Class 1 as all rooms are dedicated for
monthly rental for a 12-month period ending October 31. In
addition, two or more indicia of residential classification are
satisfied. The actual use of all the rooms in this property is
long-term stay and the amenities that are typically present in
a hotel are not available.
Scenario 4
Facts



Fits the description of a SRO hotel or motel, in that
occupants use the rooms as their primary residence.
Limited amenities offered to guests.
A small number of rooms are used exclusively for daily or
weekly rental.
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
The majority of the total numbers of rooms are dedicated
exclusively for monthly rental for the 12-month period
ending October 31 (excluding the property
manager/owner’s residence).
Classification
The rooms dedicated exclusively for monthly rental for the
12-month period ending October 31 should be classified as
Class 1. In addition, two or more indicia of residential
classification are satisfied. The rooms that are offered for
short-term daily or weekly rental should be classed as Class
6. Their actual use is short-term accommodation. The
property manager/owners residence should be Class 1.
Scenario 5
Facts


Fits the description of hotel in the peak season, but in the
off-season rooms are rented for monthly stays to college or
university students (i.e., like a college residence). In
summer months, college/university students vacate rooms
and owner makes them available for short-term overnight
commercial accommodation.
Property receives Tourist Accommodation (Assessment
Relief) Act exemption.
Classification
The entirety of the property should be classified as Class 6
because although there are rooms that are rented for monthly
tenancy to college or university students in the off-season,
they are not dedicated for monthly rental for a 12-month
period ending October 31. Because these rooms are offered
for monthly rental for part of the year, the property does not
lose its character as a hotel/motel.
Scenario 6
Facts

Fits the description of hotel in the summer, but in the
winter the owners rent the rooms to the oil and gas
Assessment Practices and Procedures
Class 1 & 6: Extended Stay Hotels and Motels
20
industry for workers to stay in (i.e., like a bunkhouse). In
summer months, tourists stay at facility on a short-term
overnight basis.
Classification
The entirety of the property should be classified as Class 6
because although there are rooms that are rented for monthly
tenancy to industry workers they are not dedicated for
monthly rental for full a 12-month period ending October 31.
Because these rooms are offered for daily or weekly rental for
part of the year, the property does not lose its character as a
hotel/motel.
Scenario 7
Facts

Fits the description of hotel, but some of the floors/rooms
are rented on a long-term basis (e.g., 12-months or more)
to an airline company and reserved and dedicated for the
use of the employees of the airline (e.g., pilots, flight
attendants) when they have a lay-over in the city. The rest
of the facility is available for short-term tourist
accommodation.
Classification
The portion of the hotel/motel that is rented for monthly
tenancy to airline workers should be classified as Class 1
because the rooms are specifically dedicated for monthly
rental for a 12-month period ending October 31 and thus are
not offered or used for daily or weekly rental for any part of
the year. The rest of the rooms in the facility that are offered
and used for daily or weekly rental should be classified as
Class 6.
Scenario 8
Facts

All year long, some of the floors/rooms are rented on a
long-term basis to an airline company and set aside for the
use of its employees and customers. The rest of the facility
Assessment Practices and Procedures
Class 1 & 6: Extended Stay Hotels and Motels
21
is available for regular accommodation for tourists not
affiliated with the airline company. If the rooms that are
dedicated for the airline company are not occupied by its
employees or customers, then the hotel rents those rooms
to short stay customers.
Classification
The property should be classified in its entirety as Class 6, as
all of the rooms are, or may be offered for, daily or weekly
rental and so the property does not lose its character as a
hotel/motel.
Scenario 9
Facts

A tenant using a room that is exclusively dedicated for
monthly rental chooses to pay for the room on a weekly
basis. The owner or manager of the building keeps this
tenant’s payment receipts to show that the tenant stayed in
that dedicated room continuously on a monthly basis, even
though payment was made weekly.
Classification
The portion of the hotel/motel that is rented for monthly
tenancy should be classified as Class 1 since it is exclusively
dedicated for monthly rental for a 12-month period ending
October 31 and thus is not offered or used for daily or weekly
rental for any part of the year. The room is rented on a
continuous basis, which can be verified by the receipts of
payment made by the tenant. It is not necessary that the
owner or manager keep the payment receipts of a tenant who
pays on a weekly basis; however, the assessor may chose to
ask the owner or manager for receipts for evidentiary use.
Assessment Practices and Procedures
Class 1 & 6: Extended Stay Hotels and Motels
22