Hotel occupancy tax is imposed on the rental of a room or space in a hotel costing $15 or more each day. If you have are renting rooms for anything less than $15.00 per day, this blog is not for you and you may need to retool your business model. In the event that you are renting by the hour and the revenues generated from one room exceed $15.00, this tax applies to you.
The tax applies not only to hotels and motels, but also to bed and breakfasts, condominiums, apartments and houses. Local hotel taxes apply to sleeping rooms costing $2 or more each day.
Persons leasing their houses, or rooms in their house, must collect the tax from their customers in the same way a hotel or motel collects the tax from its guests. Property management companies, online travel companies and other third-party rental companies may also be responsible for collecting the tax.
The hotel occupancy tax rate is 6 percent (.06) of the cost of a room.
Cities and certain counties and special purpose districts are authorized to impose an additional local hotel tax that is collected by the local taxing authority.