LOT-2 - Local Occupancy Tax – Overview

The local occupancy tax, also known as the hotel/motel tax, is a tax on any lease or rental of transient “hotels” for a period of 30 consecutive days or less to the same occupant. The local occupancy tax is locally imposed and collected, unless the rental is provided by a short-term rental unit marketplace. The Tennessee Department of Revenue collects the local occupancy tax from short-term rental unit marketplaces at the local rate for all short-term rental units secured through the marketplace. Marketplace units are residential dwellings such as houses, apartments, and cabins. Click here for more information on short-term rental unit marketplaces.

Questions regarding this tax or how to remit the tax payments should be directed to the local city government office imposing the tax, unless the tax is being remitted by a short-term rental unit marketplace. Marketplace questions should be directed to the Department of Revenue, revenue.support@tn.gov or call 615-253-0601.


References: Tenn. Code Ann. §§ 67-4-1501-67-4-1509.

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