Kingsport, TN Hotels & Lodging: Transient Occupancy Tax (2026)

Article IV of Chapter 94 (Taxation) sets the transient occupancy tax in the City of Kingsport, Tennessee. Section 94-72 imposes a privilege tax on the privilege of occupancy by a transient of space in any hotel, at seven percent of the consideration the operator charges. Section 94-70 defines occupancy as use or possession of a room, lodging or similar accommodation for a period of less than 30 continuous days. A person who keeps a space for more than 30 continuous days is not a transient and receives a refund or credit from the operator under § 94-74(b). Consideration counts all receipts, cash, credits, property and services without any deduction, while a complimentary room with no charge carries no tax. The definition of hotel reaches any inn, tourist court, tourist camp, tourist cabin, motel or other place where rooms, lodgings or similar accommodations are furnished to transients for consideration.

The operator adds the tax to each invoice and collects it from the transient (§ 94-74), files a monthly return under oath with the city treasurer (§ 94-76), and remits by the 20th day of the month next following collection (§ 94-75). An operator who is current is allowed a two percent deduction for accounting and remitting. The treasurer audits each operator at least once per year and reports the audits annually to the Board of Mayor and Aldermen. Operators keep occupancy records for three years (§ 94-79). The tax stacks on top of every other tax and fee (§ 94-73), and no operator can advertise that the tax will be absorbed, is not added, or will be partly refunded (§ 94-77).

Under § 94-81, 87½ percent of proceeds goes to the direct promotion of tourism and tourism-related activities and 12½ percent goes to the city's general fund. No proceeds can subsidize any hotel.