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Finance

Hotel Occupancy Privilege Tax

Legal Basis of The Tax

The occupancy privilege tax shall be added by each and every operator in each invoice prepared by the operator for occupancy of his hotel, such invoice to be given directly or transmitted to the transient, and shall be collected by such operator from the transient and remitted to the metropolitan department of finance. (Code of Ordinance 5.12.040)

Taxes collected by an operator which are not remitted to the tax collection official on or before the due dates are delinquent. An operator shall be liable for interest on such delinquent taxes from the due date at the rate of eight percent per year, and in addition, a penalty of one percent for each month or fraction thereof such taxes are delinquent. Such interest and penalty shall become a part of the tax required in this chapter to be remitted. Willful refusal of an operator to collect or remit the tax or willful refusal of a transient to pay the tax imposed is unlawful and shall constitute a misdemeanor. Any fine levied herein shall be applicable to each individual transaction involving lodging services paid by a customer to the operator in those cases when the operator fails or refuses to pay the tax payable. (Code of Ordinance 5.12.090)

In addition to any other tax or fee imposed pursuant to this chapter on the occupancy of the hotel room, there is hereby authorized an additional privilege tax of two dollars and fifty cents upon the occupancy of each hotel room within the territory of the metropolitan government. The tax so imposed is a privilege tax upon each occupied room for each night of occupancy and needs to be collected and distributed as provided in this article. (ORDINANCE NO. BL2014-728)

Exemptions

The law provides for only two classes of exemptions. (1) A tenant who has occupied room space for thirty or more continuous days is not required to pay the tax after the thirtieth day. (2) Local, state or federal governmental agencies, when fees are paid by those agencies.

However, the law does NOT exempt private schools, corporations, fraternal organizations, religious groups, hospitals, private universities, members of military or representatives of foreign governments.

Hotel Occupancy Tax Audits

Based on a review of Hotel Occupancy Tax audits conducted from July 2013 thru June 2014, hotel operators are encouraged to implement the following recommendations.

  1. Documentation for room revenue, number of rooms rented, adjustments to revenue, justification for out of service rooms, and exemption claims should be retained for 36 months.
  2. Solicit independent Service Organization Control 1 Reports from computer lodging system service providers. This will help ensure the accuracy of financial and statics reports used to prepare hotel occupancy tax returns.

Both recommendations will assist in ensuring accuracy of information used to calculate and verify tax filings. (Hotel Occupancy Taxes - Fiscal Year 2013)

Frequently Asked Questions

If I am a church, a foundation or other tax exempt organization, am I exempt from hotel occupancy taxes?

No. There are only 2 classes of exemptions that DO NOT pay the hotel occupancy tax. (1) A tenant who has occupied room space for thirty or more continuous days is NOT required to pay the tax after the thirtieth day. (2) Local, state or federal governmental agencies, when paid by those agencies.

Does the Collections Office mail out monthly returns for Hotels?

No, monthly returns and exemption reports are available for download on the Hotel Occupancy page.

Is the exemption report required when submitting a hotel occupancy report?

Yes, if the exemption report is not submitted with the monthly return the exemption amount will not be allowed and a debit will be issued for the difference.

Forms

NOW ACCEPTING CREDIT CARDS!

A 2.3% convenience fee will be charged on all credit and debit card transactions. This fee is collected by a third party processor. Metro does not receive any portion of this fee.

Credit Card Authorization Form

All hotel returns are due to the Collections Office by the 20th of each month. The monthly returns are no longer mailed out so we have made them available for you to download. The returns and exemption reports must be filled out in its entirety and returned to the Collections Office. Please click on the links below to access the returns and exemption reports.

Hotel Occupancy Form

Hotel Occupancy Exemption Report

Hotel Interest Penalty Calculator

Mailing Address

Collections Office
P.O. Box 196300
Nashville, TN 37219-6300