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Out-of-state Dealers and Marketplace Facilitators Information

Local Occupancy Tax

Overview

The local occupancy tax, also known as the hotel/motel tax, is a tax imposed by local governments on the privilege of occupancy in any hotel or similar place that provides accommodations for transients. This tax has historically been collected by local governments.

Beginning January 1, 2021, short-term rental unit marketplaces that offer residential dwellings for rent for less than 30 continuous days must remit the occupancy tax to the Department. This includes websites and platforms that facilitate the rental of residential units, including apartments, condominiums, and homes, owned by third-party sellers.

Short-term rental unit marketplaces that have contracted with local governments to remit the occupancy tax should continue remitting the tax pursuant to those agreements.

Hotels and bed and breakfasts should continue remitting the local occupancy tax to the appropriate local government.