Lodging Tax

Business licenses and permits protect your customers and show them your business meets federal and state regulations. CorpNet can research and process a lodging tax for you, which helps you avoid penalties and keep your business in compliance.

Navigating Licensure Can Be Tricky

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If you operate any sort of overnight accommodations, you are required by state law to charge each customer a lodging tax. This may be a percentage of the rate you charge for each night’s stay or a flat rate per room. This is in addition to the state and local sales tax you charge your customers.

Let’s say you charge $100 per night for a stay at your hotel. If the lodging tax rate is 7%, you’ll charge $107 (plus any other taxes or fees) to your customer, then pass that $7 on to the government. How does the government know what lodging tax you owe it? When you file your taxes, your income will indicate how many guests you have had in a year, and how many rooms you rented out. The lodging tax is calculated in your accounting system, and should always match up with what you pay Uncle Sam.

Why You Pay a Lodging Tax

When you start a business, the last thing you want is more business licenses, permits & taxes to take care of. But lodging tax actually benefits you as a business owner. Your local and state government uses the money it collects from you and other lodging owners to pay for marketing to draw in more travelers. The tax might pay for the construction and maintenance of a visitor center, travel guides, and other travel resources to help visitors to the area.

Attracting more travelers to your city is a great benefit to your motel, bed, and breakfast, or hotel, as it gives you a wider customer base. From there, it’s up to you to market to potential customers and let them know that your accommodations are the best in town.

So the next time you feel like grumbling about paying your lodging tax, consider all the customers you have had stay at your business, and realize it’s due, in part, to that very tax!

Man Smiling Over Paperwork

We'll Help You Discover Which Licenses and Permits You Need

Being licensed by the agency shows your customers that you meet federal and state regulations for safety, cleanliness, and honesty, which helps them trust your business.

  • We do the research and take out the guesswork so you know exactly which licenses or permits your business needs.
  • We provide the paperwork and instructions on how to file it, so it’s ready to be filed.
  • We'll file the paperwork for you with the appropriate agency, so you don't have to lift a finger!
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