New Tennessee Occupancy Taxes
- May 18, 2015 | Gail Cole
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.