Effective October 1, 2008, the hotel 2.00 room tax will change from 2.00 to 2.50 approved and signed into law by Mayor Karl Dean and the Metropolitan Council on August 22, 2008. The ordinance, Number BL2008-251 authorizing the collection of an additional fifty cent (.50) that will be used to support events or projects which are found by a committee to have a cumulative total economic impact of the Metropolitan Government of Nashville and Davidson County of greater than five million dollars. This new increase of the city tax so imposed is an additional privilege tax upon each occupied room for each night of occupancy and needs to be collected and remitted to the Davidson County Clerk’s Office on a monthly basis.
This ordinance provides the procedures for collections, enforcement, distribution, and administration of the proceeds thereof and establishing a Tourism and Convention Commission. Chapter 704 of the Public Acts of 1976, as passed by the 89th General Assembly of the State of Tennessee, authorized counties having a Metropolitan form of government to levy a privilege tax upon the occupancy in any hotel, motel, or bed and breakfast of each transient in an amount not to exceed six percent (6%) of the consideration charged by the operator.
Hotel/Motel Tax
Davidson County Clerk's Office
523 Mainstream Drive in the Riverview Business Center II at Metro Center
Nashville, TN 37228
Hotel / Motel Tax Division
(615) 862-6254 ext. 77158
CRITERIA FOR PARTICIPATION IN THE HOTEL/MOTEL TAX PROGRAM
Any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit that charges a consideration for the occupancy in a hotel valued in money whether to be received in money, goods, or labor.
HOW TO REGISTER AS A HOTEL/MOTEL PROPERTY TO PARTICIPATE IN THIS PROGRAM?
A separate license is not required for participation in this program. However, since all businesses operating in Davidson County are required to have a business license, you must register your hotel/motel at the same time that you apply for your business license. The Business Tax and the Hotel/Motel Tax Divisions, are both administered by the Davidson County Clerk's Office.
FORMS TO BE USED IN REPORTING TAX
Forms are forwarded each month to each hotel/motel property. Only the Hotel/Motel Occupancy Tax Form should be used in filing your return. Taxpayers have another option in which to pay their hotel/motel taxes. The following credit card form is to be used in making hotel/motel tax payments. (Visa and Mastercard only). You are also required to send in the hotel/motel forms with your payments. Please do not use any other form.
RECORDS KEEPING REQUIREMENTS
Records should be preserved for a period of three years at your principal place of business or at some other location convenient to the County Clerk or his representative and should be available at any reasonable time for inspection.
TAX TO BE SHOWN ON INVOICE
The tax should always be shown as a separate item on the invoice, or statement of charges rendered to the tenant.
ENFORCEMENT
The tax collection official shall have as additional powers, those powers and duties with respect to collection of taxes provided in Title 67 of the Tennessee Code Annotated or otherwise provided by law. To lend credibility to the process of collecting this tax, audits are scheduled on a random basis or where the need of an audit is clearly indicated.
INTEREST AND PENALTIES (LATE FILINGS)
A return becomes delinquent when not paid by the 20th of the month following the month for which the tax was collected. The imposition of interest and penalties in the case of a delinquent return or in the case of willful failure or refusal to report is mandatory. There is no authority for the remission of interest and penalty. More stringent penalties are also imposed for willful failure to collect and remit the tax.
DISTRIBUTION AND ADMINISTRATION OF PROCEEDS
The proceeds from the tax levied herein shall be retained by the Metropolitan Government and distributed as follows:
– One-third of the proceeds shall be used for direct promotion of tourism;
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One-third of the proceeds shall be used for tourist-related activities;
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One-sixth of the proceeds shall be used for the constructing, financing and operation of a convention center;
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One-sixth of the proceeds shall be deposited in the general fund of the Metropolitan Government.
TOURIST & CONVENTION COMMISSION
For the purpose of promoting tourism, conventions, and recreational activity, Metropolitan Council has established a Tourism & Convention Commission. This commission shall be comprised of persons nominated by the Mayor of the Metropolitan Government and voted upon by the members of the Metropolitan Council.
FREQUENTLY ASKED QUESTIONS
Are there any exemptions available with this program?
The law provides for only two classes of exemptions.
– A tenant who has occupied room space for thirty or more continuous days is not required to pay the tax after the thirtieth (30) day. (Residents who have already been in residency thirty days or more are exempt).
– Local, state or federal governmental agencies, are exempt from this tax when the consideration is paid by those agencies.
These rules also apply to the $2.50 nightly city tax.
The law DOES NOT exempt schools, corporations, fraternal organizations, religious groups, hospitals, athletic teams of schools, universities and colleges, members of the military, ministers or representatives of foreign governments. However, hotel taxes are not collectible from the University of Tennessee or state universities and community colleges if the following criteria are satisfied:
– The room is rented in the name of the state university or college.
– The room is paid for directly by the state university or college.
However, privilege taxes are not collectible from the University of Tennessee or Board of Regents State Universities and community colleges if the room or rooms are rented in the name of the university or college and the room or rooms are paid for directly by the university or college. Both criteria must be satisfied in order for a university or college not to be subject to the tax.
The hotel tax must be collected if the university or college fails to satisfy either or both criteria. For example, if a room is rented in the name of an employee of a university or college, even if the employee is on official business, the tax must be collected. If the room is rented in the name of the university or college but the employee pays for the room or uses a credit card, the tax must be collected. (The university or college must collect the tax even if the employee who pays for the room will be reimbursed for the cost of the room. However, if the room is rented in the name of the university or college and the cost of the room is billed directly to the university or college or paid for with a university or college check or check card, the hotel tax should not be collected.
What Is Required To Open A Bed & Breakfast?
Any person planning to operate a B&B shall make a written application for a permit on forms provided by the Metro Health Department for a fee of 50.00. You would also need to apply for a Home Occupancy Permit through the Metropolitan Government of Nashville (Codes & Zoning Department). You will also be required to obtain a Sales Tax account with the Tennessee Department of Revenue.
Who Would I Call To Get More Information To Operate A Bed & Breakfast?
Metropolitan Health Department (Food Protection Services at (615) 340-5620.
If you have questions concerning this webpage, please call the Davidson County Clerk’s Office at (615) 862-6254 ext. 77137.