Reviewed Date: 11/30/2022
Revenue Class: Local Taxes
Account No.: 31920
Description: Occupancy tax on hotel or motel room rentals, imposed by private act. Rates vary from 1.25 percent to 10 percent.
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 by two-thirds vote of the governing body at two consecutive regularly scheduled meetings; or be approved by referendum, and tax cannot exceed five percent. T.C.A. § 67-4-1402. City cannot assess the tax if the county has already levied an occupancy tax. T.C.A. § 67-4-1425 (a)(2). Additional limitations are found in T.C.A. § 67-4-1425.
Current Rate: Cannot exceed 10 percent. Hotel operator is allowed to retain 2 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 20th.
Late Pay Penalty: Interest is charged at 12 percent per annum plus a penalty of 1 percent for each month taxes are delinquent. T.C.A. § 67-4-1408.
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.