Transient Occupancy Tax (Hotel Tax) Law

The Transient Occupancy Tax (TOT), commonly known as the hotel tax, is a tax charged to individuals who stay in hotels, motels, or other temporary lodging. This tax is typically a percentage of the accommodation cost and is collected by the lodging provider at the time of booking. The revenue generated from this tax is often used by local governments to fund tourism-related services, infrastructure, and community programs. The specific rates and regulations regarding TOT can vary by state and locality, reflecting the different approaches each jurisdiction takes to manage and benefit from tourism.