Occupancy tax applies to the privilege of occupying an accommodation, such as a hotel room or short-term rental unit. The occupancy tax rate applies to the “consideration” provided to occupy the accommodation.
“Consideration” means “the consideration charged, whether or not received, for the occupancy in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, property and services of any kind or nature without any deduction therefrom whatsoever.” This includes all additional fees that a consumer must pay to occupy the accommodation, such as non-refundable pet deposits, required cleaning fees, guest booking fees, and property damage protection fees.
References: Tenn. Code Ann. §§ 67-4-1401,- 1402.
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