§ 9242. Collection of meals and rooms tax by operator and imposition of gross receipts tax

(a) Each operator shall state the amount of tax to each occupant and each purchaser of a taxable meal and alcoholic beverage, and shall charge the tax for each rental, meal, or beverage, and shall demand and collect the tax from such occupant or purchaser. The occupant or purchaser shall pay the tax to the operator and each operator shall be liable for the collection thereof.

(b) No operator shall advertise or hold out or state to the public or to any consumer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the price of taxable meals or beverages or the rent, or that, if added, it or any part thereof will be refunded. However, an operator may advertise the price of a taxable meal or beverage or the rent by stating the purchase price or rent charge with the words “plus tax,” or “exclusive of tax,” or “tax included.” The operator shall maintain his or her records to show separately the charge for taxable meals, beverages, and rent and the amount of tax paid thereon, and the operator, if requested, shall furnish the purchaser or occupant with a statement of the charges made showing the tax separately computed thereof.

(c) A tax of nine percent of the gross receipts from meals and occupancies and 10 percent of the gross receipts from alcoholic beverages, exclusive of taxes collected pursuant to section 9241 of this title, received from occupancy rentals, taxable meals, and alcoholic beverages by an operator, is hereby levied and imposed and shall be paid to the State by the operator as herein provided. Every person required to file a return under this chapter shall, at the time of filing the return, pay the Commissioner the taxes imposed by this chapter as well as all other monies collected by him or her under this chapter; provided, however, that every person who collects the taxes on taxable meals and alcoholic beverages according to the tax bracket schedules of section 9241 of this title shall be allowed to retain any amount lawfully collected by the person in excess of the tax imposed by this chapter as compensation for the keeping of prescribed records and the proper account and remitting of taxes.