Peoria, AZ Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Base hotel tax rate
- 1.8% of gross lodging income, § 12-444
- Additional transient lodging tax
- 3.8% more, § 12-447
- Combined city lodging tax
- 5.6% of gross lodging income
- License required
- Transaction Privilege and Use Tax License
- Operating unlicensed
- Unlawful under § 12-350
- Criminal penalty
- Class One Misdemeanor, § 12-580
- Enforcing office
- City Tax Collector
Summary
Peoria taxes hotel and short-term lodging income at a combined 5.6% transaction privilege tax: a 1.8% base rate under City Code § 12-444 on every hotel operator's gross lodging income, plus a 3.8% additional tax under § 12-447 on charges to transients. Operators must hold a City tax license and remit to the Tax Collector.
Sec. 12-444. Hotels. The tax rate shall be at an amount equal to one and eight tenths percent (1 8/10%) of the gross income from the business activity upon every person engaging or continuing in the business of operating a hotel charging for lodging and/or lodging space furnished to any: (a) Person. ... Sec. 12-447. Rental, leasing, and licensing for use of real property: additional tax upon transient lodging. In addition to the taxes levied as provided in Section 12-445, there is hereby levied and shall be collected an additional tax in an amount equal to three and eight tenths percent (3.8%) of the gross income from the business activity of any hotel engaging or continuing within the City in the business of charging for lodging and/or lodging space furnished to any transient.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-9: Supplement contains: LLocal legislation current through Ord. 2026-15, passed 6-16-26).
Full Breakdown
6%. 8% 'of the gross income from the business activity upon every person engaging or continuing in the business of operating a hotel charging for lodging and/or lodging space,' and § 12-100 defines 'Hotel' broadly to include 'any public or private hotel, inn, hostelry, tourist home, house, motel, rooming house, apartment house, trailer, or other lodging place within the City offering lodging' to a transient, excluding foster homes, rest homes, sheltered care homes, nursing homes, and primary health care facilities. ' Exclusions under § 12-444(b) remove income from housing federal, state, or other jurisdictions' prisoners in a privately operated detention facility, income already taxed under another business classification, separately billed telecommunications or internet charges, and guest commissions instead taxed as rental income under §§ 12-445 or 12-450.
Every operator, including a short-term rental host renting transient lodging space, must hold a City Transaction Privilege and Use Tax License; § 12-350 makes operating without one unlawful. Landlords collect the tax when rent is paid and remit it to the City Tax Collector, who can assess delinquent tax, interest, and penalties directly against an unlicensed operator.
Violations & Fines
Operating a hotel or short-term rental without a City Transaction Privilege and Use Tax License, or failing to remit collected tax, triggers a Tax Collector assessment of the unpaid tax plus interest and civil penalties. Knowingly failing to file a required return, filing a false or fraudulent return, or refusing to obtain a license to evade the tax is a Class One Misdemeanor under § 12-580, and knowingly swearing to a false statement is punishable as perjury.
Frequently Asked Questions
What is Peoria's hotel occupancy tax rate?
Does the hotel tax apply to short-term rentals in Peoria?
What happens if an operator does not get a tax license?
Are any lodging charges excluded from the tax?
Sources & Official References
Other rules in Peoria
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