Jackson, TN Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% of room rate
- Transient defined as
- occupancy under 30 days
- Remit by
- 20th of each month
- Operator compensation
- 2% deduction
- Delinquency interest
- 12%/year plus 1%/month
- Willful refusal penalty
- up to $50, misdemeanor
- Revenue split
- 37.5% city / 37.5% county / 25% fund
Summary
The City of Jackson levies a 5 percent privilege tax on hotel, motel, tourist court and similar transient lodging under Jackson Municipal Code § 5-402, charged on the rate paid by any guest who occupies a room for less than 30 continuous days. Operators collect the tax on every guest invoice and remit it monthly to the Madison County trustee, who administers collection for both the city and county.
5-401. - Definitions. ... "Hotel" means any structure or space, or any portion thereof, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist camp, tourist court, tourist cabin, motel or any place in which rooms, lodgings or accommodations are furnished to transients for a consideration. ... "Transient" means any person who exercises occupancy or is entitled to occupancy for any rooms, lodgings or accommodations in a hotel for a period of less than thirty (30) continuous days. ... 5-402. - Tax levied; amount; authority. (1)There is hereby levied a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount of five percent (5%) of the rate charged by the operator of such hotel.(2)The tax so levied is authorized by Chapter 324 of the Private Acts of the General Assembly of the State of Tennessee for 1980 and in conjunction with a levy by Madison County, Tennessee of a similar tax; the total of the tax here levied and the Madison County tax is not to exceed five percent (5%).
Full Breakdown
Jackson Municipal Code § 5-401 defines a taxable 'hotel' broadly: any hotel, inn, tourist camp, tourist court, tourist cabin, motel, or any place in which rooms, lodgings or accommodations are furnished to transients for a consideration. A 'transient' is anyone occupying a room for less than thirty continuous days. Section 5-402 sets the levy at five percent of the rate the operator charges, and caps the combined city and Madison County hotel tax at five percent total when both jurisdictions levy the tax together. Operators must add the tax to every room invoice under § 5-404 and collect it directly from the guest.
Remittance goes to the Madison County trustee by the twentieth day of each month for the prior month's collections under § 5-405; the trustee allows operators a two percent deduction for accounting and timely remittance. The trustee audits every operator in the city and county at least once a year and reports quarterly to the city council under § 5-406. Operators must keep records for three years under § 5-408, and may not advertise that they will absorb or refund the tax under § 5-407.
Revenue is split 37.5 percent to the city general fund, 37.5 percent to the Madison County general fund, and 25 percent to a community economic development commission fund under § 5-410.
Violations & Fines
Under § 5-403, unpaid tax becomes delinquent after the due date and draws interest at twelve percent per year plus a one percent penalty for each month or partial month it remains unpaid; both amounts become part of the tax owed. Willful refusal by an operator to collect or remit the tax, or by a transient to pay it, is a misdemeanor punishable by a fine of up to fifty dollars per offense.
Frequently Asked Questions
Does Jackson's hotel tax apply to Airbnb and other short-term rentals?
Who collects Jackson's hotel occupancy tax?
What happens if an operator pays the hotel tax late?
How is Jackson's hotel tax revenue used?
Sources & Official References
Other rules in Jackson
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