Hotel Motel Occupancy Tax
General Information
Occupancy tax is a 5% privilege tax on the occupancy in any hotel by a transient. This tax does not apply to employees of government agencies* or residents staying at the hotel over 30 days. The tax is to be submitted no later than the 20th of each month for the preceding month to be allowed a 2% deduction of the tax due. Penalties and interest are applied after the 20th when payment is not submitted.
*When payment is submitted by a government agency to the hotel/motel
Who Pays this Tax?
Hotel means any structure or ground space, or any portion of any structure or ground space, which is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes, and includes any hotel, inn, tourist court, tourist camp, tourist cabin, motel or any place in which rooms, lodging or accommodations are furnished to transients for consideration or any place in which ground space is furnished to transients for the parking of recreational vehicles, travel trailers, campers or tents for a consideration; provided, however, that "hotel" shall not include any rental to transients of rooms or accommodations in an owner occupied single-family residence; in an apartment or condominium where not more than 25 percent of the total units in the complex are rented to transients; and in a single-family house where each single-family dwelling unit occupies a separate lot.
How do I register to pay this tax?
A separate license or permit is not required to register for this tax. Applying for a Knox County Business tax license as an operator of a hotel or motel automatically registers you for payment of the tax.
Forms to be used in reporting this tax
Tax forms are forwarded each month to the hotel/motel properties. Only the Hotel/Motel Occupancy Tax Form should be used to file your return. You are required to submit your return and payment together.
Exemptions
The law allows two types of exemptions:
- A tenant who has occupied room space for thirty or more continuous days is not required to pay the tax after the thirtieth day.
- Local, state or federal governmental agencies are exempt when the consideration is paid directly by those agencies. Please note: This tax applies to tenants whom will be reimbursed by the governmental entity for the cost of the room. This law does not exempt schools, corporations, fraternal organizations, religious groups, hospitals, athletic teams of public schools, universities and colleges, members of the military, ministers or foreign government representatives.
Late Filings
A return is considered delinquent if not paid by the 20th of the month following the month in which the tax was collected. Penalties and interest will then accrue and become part of the tax. Refusal of an operator to collect or remit the tax is declared to be unlawful and shall constitute a misdemeanor.
Record Keeping
All records necessary to determine the amount of tax should be kept for a period of three years and available at any reasonable time for inspection.
CONTACT US:
Phone: 865-215-3902
Fax: 865-215-3156
or
Email: occupancy.tax@knoxcounty.org
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