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Georgia’s New Hotel-Motel Fee, July 2015

  • Jun 30, 2015 | Gail Cole

 A new hotel/motel fee takes effect in Georgia on July 1, 2015.

Effective July 1, 2015, a $5 hotel-motel fee is imposed on each calendar night a hotel room is rented in Georgia.

As with all things related to taxes and fees, the devil is in the details. For example, the fee no longer applies once the rental of the room becomes an extended stay rental of 31 consecutive nights or more (though it does apply to the first 30 days). Another example: the fee does not apply to complimentary hotel rooms but it does apply to hotel rooms provided to hotel employees (at no charge), “if the rooms must be included in the employee’s wages for purposes of federal income tax.”

Other FAQs worth noting include the following:

  • Hotel room is defined as a room (or suite of conjoined rooms offered as a single accommodation) “(i) in a hotel (ii) that is used to provide private sleeping accommodations to paying customers and (iii) that typically includes linen or housekeeping service. A hotel room is usually occupied by transients or travelers who do not enjoy an exclusive right or privilege with respect to the room, but instead merely have an agreement for the private use or possession of the room. A room is a 'hotel room' only if the customer has the right to exclude other customers from the room."
  • In a buy two nights, get one free situation (or similar), the fee applies to all nights, not only nights paid for by the customer.
  • The fee does not apply to stays on or after July 1 if payment took place prior to July 1.
  • The fee is not subject to sales tax if it is separately stated. It is subject to sales tax if it is not separately stated.

Additional information and numerous examples are available through the Georgia Department of Revenue on the fee FAQs page and the Georgia state hotel/motel fee rules and regulations.

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photo credit: Hotel e relax via photopin (license)

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.