The operator is correct.
From the code:
"Permanent resident" means any individual who has or shall have the right of occupancy in a sleeping room/space at the same transient lodging establishment for thirty-one consecutive days or more, and for whom rent is exempt from the transient lodging tax on the thirty-first day and every consecutive day thereafter, provided the individual continues to occupy or continues the right to occupy a sleeping room/space at the same transient lodging establishment.
For clarification... 4.08.050(b) States you are exempt from the occupancy tax after you become permanent resident status.
P.S. Have a fun and profitable trip!