Hotels & Lodging in Washington, DC: What Residents Actually Need to Know

If you live in Washington or are thinking about moving there, hotels & lodging are one of those things you probably won't think about until they affect you directly. Washington has 3 specific rules on the books covering different aspects of hotels & lodging, and some of them might surprise you.

Transient Occupancy Tax

Hotels and short-term lodging in DC must collect a 14.95% sales tax on room charges, plus a 1% surcharge dedicated to the Convention Center Marketing Fund, remitting both to the Office of Tax and Revenue.

Key details: Sales tax rate: 14.95% on lodging. Convention surcharge: 1% additional fund fee. Combined effective: Approximately 15.95% per night. Filing frequency: Monthly FR-800M return. Authority: DC Code 47-2002.

Failure to collect, remit, or file lodging tax returns triggers OTR audits, penalties up to 25%, monthly interest, license suspension, and potential personal liability for responsible officers.

Compared to other cities, Washington takes a harder line on transient occupancy tax. The enforcement and penalty structure reflects that.

Hotel Living Wage

Employers receiving DC government contracts or assistance, including major hotels with city-supported financing, must pay covered workers the annually adjusted DC Living Wage, which exceeds the standard minimum wage.

Key details: Trigger threshold: $100,000 contract or assistance. Adjusted annually: Yes by DOES. Authority: DC Code 2-220.01. Common covered employers: Subsidized hotels and contractors. Enforcement agency: DC DOES Office of Wage-Hour.

Underpayment exposes contractors to back wages, liquidated damages, contract debarment, and civil penalties enforced by the Department of Employment Services and DC Attorney General.

Compared to other cities, Washington takes a harder line on hotel living wage. The enforcement and penalty structure reflects that.

Hotel Worker Retention

When a DC hotel, food service contractor, or building services employer changes ownership, the new operator must retain existing non-managerial workers for a 90-day transition period under the Displaced Workers Protection Act.

Key details: Retention period: 90 calendar days minimum. Employer threshold: 25 or more employees. Authority: DC Code 32-102. Covered industries: Hotels food janitorial building services.

Skipping the 90-day retention triggers private lawsuits, back pay, reinstatement orders, and damages plus attorneys' fees, with DOES providing administrative oversight of compliance complaints.

The Bottom Line

Washington is tougher than many cities when it comes to hotels & lodging. Out of the 3 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Washington, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

These rules come from Washington's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.