Revenue Class: Local Taxes

Fund: General

Account No.: 31920

Description: Occupancy tax on hotel or motel room rentals, imposed by private act or ordinance.

Authorization: T.C.A. § 67-4-1401 et seq.; T.C.A. § 6-55-102; and various private acts

Requirements or Restrictions: Tax must be approved by ordinance of the governing body in the same manner all ordinances are approved for the municipality and tax cannot exceed four percent if levied under T.C.A. § 67-4-1402. Revenue received for the tax must be designated and used for the promotion of tourism and tourism development if the tax is levied after July 1, 2021. T.C.A. § 67-4-1403. Any valid levy of hotel/motel tax or any authorization to levy hotel/motel tax that existed prior to July 1, 2021, remains in full force and effect. A municipality with an authorized preexisting hotel/motel tax before July 1, 2021, shall not change the initial use of the revenue except in accordance with T.C.A. § 67-4-1403.

Current Rate: Cannot exceed four percent except when levied by private act or ordinance prior to July 1, 2021. Hotel operator is allowed to retain two percent of the amount of the tax due for collecting the tax. T.C.A. § 67-4-1405 (b).

Frequency of Payment: Monthly by the 20^th.

Late Pay Penalty: Interest is charged at 12 percent per annum plus a penalty of one percent for each month taxes are delinquent. T.C.A. § 67-4-1408.

Exemptions: Long-term occupancy of persons who have maintained occupancy for thirty (30) continuous days.

Collection: Monthly. The municipality has the authority to collect delinquent taxes by any means available by law including issuing distress warrants and the seizure of assets. T.C.A. § 67-4-1408(d).

Use Restrictions: None unless the governing body specifies such in the authorizing ordinance. T.C.A. § 67-4-1403.