Lincoln, NE Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 4% of room charge per night
- Effective date
- January 1, 2011
- Return due date
- 25th of following month
- Late penalty
- 1%/month interest + 10% penalty
- Sunset date
- No later than January 1, 2046
Summary
Lincoln charges a 4% occupation tax on every occupied hotel room per night, collected by the operator and remitted monthly to the City Finance Director.
Beginning January 1, 2011, each person engaged in the business of operating a hotel in the City shall pay an occupation tax in the amount of four percent (4%) of the total consideration charged for occupancy per occupied room per night. The tax imposed by this chapter may be shown as an add-on to the charge for occupancy of the rooms and shall be collectible at the time the lodging is furnished, regardless of when the charge for the occupancy is paid.
Full Breakdown
Under Lincoln Municipal Code Chapter 3.28, anyone operating a hotel in the city pays a 4% occupation tax on the total consideration charged per occupied room per night, in effect since January 1, 2011. Operators may pass the tax through as a line-item add-on to the guest bill, but the operator remains liable for payment even if it isn't collected from guests. Returns are due to the City Finance Director by the 25th of the following month. Revenue funds the Joint Public Agency that operates the city arena, and the tax is stacked on top of any other city or state fees, taxes, or licenses: it doesn't replace them. The tax sunsets January 1, 2046 unless renewed.
Violations & Fines
Late or unfiled returns draw a 1% monthly interest charge plus a 10% penalty, assessed by the City Finance Director after written notice. Willful evasion of collection or remittance can trigger suspension or revocation of the operator's city license or permit after a hearing, and the City Attorney may sue in Lancaster County District Court to recover unpaid tax, penalties, and interest as a debt owed the City.
Frequently Asked Questions
Who has to pay Lincoln's hotel occupation tax?
What happens if a hotel operator doesn't file or pay?
Sources & Official References
Other rules in Lincoln
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