When the tax rate is based upon room rate, it can be argued the room rate is zero and therefore the tax due is zero. However, when local taxing agencies base the tax/fee on body count that will always be non-zero. I've seen some local tax laws specifically state the amount to be collected from the guest and not covered by the property or chain. Tourist taxes on especially heinous since the tourists almost never get to vote on them. The ultimate taxation without representation.