Gilbert, AZ Hotels & Lodging: Transient Occupancy Tax (2026)

Sec. 58-444, "Hotels," levies the base Privilege Tax at two percent (2%) of gross income upon every person operating a hotel that charges for lodging or lodging space furnished to any person. That base rate excludes several categories of income, including amounts from incarcerating or detaining prisoners in a privately operated facility, income already taxed under another Article IV classification, and separately stated telecommunications charges (which fall instead under Sec. 58-470). Sec. 58-447, titled "Rental, leasing, and licensing for use of real property: additional tax upon transient lodging," layers a second, additional tax on top of the Sec.

58-444 base: five percent (5%) of gross income from the business activity of any hotel charging for lodging or lodging space furnished specifically to a transient. That additional tax was set by Ordinance No. 931 in 1995 and has been amended since, most recently by Ordinance No. 2918 in 2024. Together, Sections 58-444 and 58-447 produce a combined 7% Town-level tax on transient lodging revenue, collected by the Town Tax Collector under the reporting and payment procedures in Sec. 58-520 and the delinquency rules in Sec.

58-530. Because Sec. 58-445(j) exempts from the rental/leasing tax any gross income already taxable under Sec. 58-444, a hotel operator is not double-taxed under both the general real-property rental section and the Hotels section, the Hotels classification and its added transient-lodging tax are the specific provisions that apply once lodging is being sold to overnight guests.