Funny enough this is my first time ever redeeming a hotel stay award from my account with a cash upgrade, so forgive the naivety of my question...

I recently booked a stay at RC Cancun with points. The website did not offer the ability to use additional cash/points to upgrade to club level but I called the hotel and they offered to upgrade me for $240 a night.

At checkout, how will this $240/night charge be treated? It is classified as a "room rate" and thus able to earn points?

Also, are taxes assessed on the upgrade the same way they would be on the room rate?