Hotel Tax Information

Understanding Georgia's Hotel/Motel Tax System

Hotel/Motel taxes are paid by hotel guests, at a percentage of their nightly room rate.  The amount of the tax varies across the state.  The taxes range from 3-8 %.  There are twenty-one different version of this tax.. Needless to say, the Tax Code (48-13-51) is complex and, in many circumstances, is quite confusing. For hotel tax complaints, visit DCA's site.

The information contained on this webpage will to give you a better idea of the various code sections, the acceptable uses of the tax and which code section applies to your community. 

A Few of the Ways the Tax Is being used in Georgia

100% of these taxes are expended at the local level.  The taxes have many uses which include:

Over 210 local governments are currently collecting hotel taxes.  These tax receipts exceed $200 million per year.

In 2004, the Georgia General Assembly passed, and Governor Perdue signed, legislation that adds enforcement and accountability measures to insure these taxes are being used for their intended purposes.  Read more about HB1415 and how these changes will impact your community. 

Hotel/Motel Tax Reform - HB 1415

HB 1415 was signed into law at the conclusion of the 2004 General Assembly.  This legislation establishes enforcement and accountability measures to insure hotel/motel taxes are being expended in accordance with Georgia law as outlined in Code Section 48-13-51. As the Department of Community Affairs releases the rules and regulations concerning the activities of the Performance Review Board, as well as details on the actions necessary to file a complaint, we will update this information.

Overview of the Bill 

Hotel Motel Tax Performance Review Board

Board Members:

Jim Finch, Department of Community Affairs Tony Schopp, Savannah Convention and Visitors Bureau John Bennett, City of Rome John Culpepper, Athens-Clarke County Steven Freund, Ritz Carlton at Lake Oconee Janice Marshall, Macon-Bibb County CVB

Mayor Gerald H. Thompson, Fitzgerald, Georgia Senator Jeff Mullis, Chickamauga, Georgia Ed Blaha, Department of Audits and Accounts Ginger Taylor, Georgia Department of Economic Development Lora Butler, Department of Revenue

1.  The Hotel Motel Tax Performance Review Board membership is summarized below.

2.  The Performance Review Board will investigate any complaint with respect to all actions of a county, municipality, or any other entity regarding its expenditure of funds received from the hotel motel tax and regarding compliance with state law.  Taxpayers, local governments, innkeepers, or private sector nonprofit organizations may make complaints to the Performance Review Board. 

All complaints must be made to the Department of Community Affairs by June 1 in order to be heard by the Performance Review Board that year.

3.  The Performance Review Board will meet annually from September 1 through December 1 and must issue a written report of its findings.  The report must include any evaluations, judgments, and recommendations it finds appropriate.

4.  The report of the Performance Review Board must be delivered to the commissioner of community affairs within 60 calendar days of hearing the complaint.  The Commissioner has 30 days to review the findings of the Performance Review Board.  If the Commissioner determines the tax has been misused, the entity violating the law will have 90 calendar days to get into compliance. 

If the entity violating the law does not get into compliance during the specified time period, the Commissioner of Community Affairs will notify the Revenue Commissioner.  The Revenue Commissioner may act to enforce compliance with remedial action, including termination of the tax.

Annual Audit and Annual Report
1.  Each local government’s annual audit must disclose the following information about a local government’s hotel motel tax:

• The amount of tax receipts from the hotel motel tax during the fiscal year;
• The amount of funds expended or contractually committed for hotel motel tax purposes during the fiscal year; and
• Expenditures as a percentage of tax receipts.

2.  If an entity spends hotel motel tax funds through a contract in order to meet requirements of the hotel motel tax law, the contracting party must provide audit verification that the funds are spent in accordance with the law.

3.  If the local government audit indicates noncompliance with the expenditure requirements of the law, that noncompliance must be included in the annual audit report.  The State Auditor must report any noncompliance to the Department of Community Affairs upon completion of the report review.  The State Auditor must then give a copy of all documents relating to the noncompliance submitted by the local government or the local government’s auditor to the Department of Revenue.  The Department of Community Affairs must submit a copy of all documents to the Performance Review Board.

4.  As a part of the annual report of local government finances that is submitted to the Department of Community Affairs, each local government that levies a hotel motel tax must include the following information:

• A schedule of all revenue from the hotel motel tax that is spent to promote tourism, conventions, and trade shows or any other tourism-related purpose permitted by the law;
• A list of the project or projects on which the tax revenue was spent; and
• The contracted entity involved in each expenditure.

Also be sure to review DCA’s website for more information on hotel tax reporting and other information on the hotel tax system.