Orem, UT Hotels & Lodging: Transient Occupancy Tax (2026)

Orem City Code Article 18-3, the Transient Room Tax, was enacted by Ordinance No. O-98-0038 on August 25, 1998 and took effect October 1, 1998. Section 18-3-3 levies the tax on 'the rents charged to transients occupying public accommodations' at an initial rate of 1%, which the code states 'shall be in effect until modified by the City Council,' meaning Orem's council, not staff, must act to raise it. Section 18-3-2 defines the taxed universe deliberately wide: a public accommodation 'means a place providing temporary sleeping accommodations to the public,' and the list runs from a motel, hotel, motor court, and inn through a bed and breakfast establishment, a condominium, and a resort home, so a short-term rental booked through a condo or resort-home operator sits inside the same 1% levy as a hotel room.

'Rents' is defined to include not just nightly charges but timeshare fees or dues, and a 'transient' is anyone occupying the accommodation for 30 consecutive days or less. Rather than run its own collection office, the City contracts with the Utah State Tax Commission to collect the tax (18-3-3(D)), the same mechanism Orem uses for its municipal energy sales tax under Article 18-2. Every dollar collected is deposited into Orem's general fund and 'may be used for any general fund purpose' (18-3-3(E)), so the revenue isn't earmarked for tourism promotion. Orem's 1% rate has stood unchanged since the 1998 enactment ordinance; any increase requires a new City Council ordinance amending Section 18-3-3(B).