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New Tennessee Occupancy Taxes

  • May 18, 2015 | Gail Cole

 There's room for new hotel taxes in Tennessee.

Governor Bill Haslam (R) of Tennessee has signed into law legislation authorizing three localities to adjust their hotel occupancy taxes.

The City of Fayetteville is authorized to “levy an occupancy tax of not more than 5% on the privilege of staying in any hotel or motel in Fayetteville,” provided such a levy is adopted by a two-thirds vote of its governing body. Revenue generated by the tax must fund tourism development.

The legislative body of Grundy County is also authorized to levy an occupancy tax “of not more than five percent,” provided it is approved by two-thirds vote,

Finally, the legislative body of Johnson City now has the authority to “adjust the rate of the municipality’s privilege tax upon the privilege of occupancy in any hotel located within the municipality of each transient.” Such a change must be approved by a two-thirds majority.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.