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

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Tax rate
1.5% of gross room revenue
Applies to
Stays of less than 30 days
Tax base
Base room rate only
Credit
Offsets Title 6 license tax
Activation
Requires triggering Council resolution
Enacted
1990-66, last amended 1994-20

Summary

Provo levies a 1.5% innkeeper revenue tax on gross rental income from any motor court, motel, hotel, inn, or similar public accommodation renting rooms for stays of less than 30 days. The tax is separate from the state transient room tax and is collected by the City Treasurer, with a credit allowed against the operator's Title 6 business license tax.

There is hereby levied upon the business of every person, company, corporation, or other like and similar persons, groups or organizations, doing business in the City as motor courts, motels, hotels, inns or the like, and similar public accommodations, an annual license tax equal to one and a half per cent (1.5%) of the gross revenue derived from the rent for each and every occupancy of a suite, room or rooms, for a period of less than thirty (30) days.

View official code

Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 2026-17, passed June 9, 2026).

Full Breakdown

5% of the gross revenue derived from renting a suite, room, or rooms for any occupancy lasting less than 30 days at a motor court, motel, hotel, inn, or similar public accommodation operating in the city. The tax is computed on the base room rental rate; the code excludes state and local sales/use taxes, any transient room tax or resort communities tax levied under Utah Code Title 59, Chapter 12, food and beverage or room-service charges billed separately from the base rate, and telephone, gas, or electric charges not folded into the room rate.

Operators who pay the innkeeper tax receive a credit against the license tax otherwise owed under Title 6 of the Provo City Code. Collection follows the same basis and schedule the Utah State Tax Commission uses for the state transient room tax, and every taxed business must report and remit to whichever office the City Administration designates for collection. The City may also contract with the State Tax Commission or other agencies to administer and enforce the tax. Notably, the ordinance does not self-execute: Subsection (6) provides that the innkeeper tax 'shall take effect upon enactment hereafter of a resolution of the Provo City Municipal Council, setting a date for its imposition,' so operators should confirm with the City Treasurer's office whether a triggering resolution is currently in force. 5% rate itself.

Violations & Fines

Chapter 5.02.030 does not spell out its own late-payment penalty; unpaid amounts are pursued through the City's contract enforcement with the Utah State Tax Commission, which may impose levies and other penalties, and through Title 6 business-license consequences since payment affects a hotel's license-tax credit. Provo City Code Section 1.03.010 separately makes any code provision declared unlawful punishable by a fine up to $1,000, up to six months in jail, or both, and applies citywide unless a section states otherwise.

Frequently Asked Questions

Does Provo's innkeeper tax apply to Airbnb-style short-term rentals?
Section 5.02.030 by its terms taxes motor courts, motels, hotels, inns, and similar public accommodations for stays under 30 days. Provo's separate short-term rental ordinance (Code Chapter 6.33) governs STR licensing and zoning, and the code text does not cross-reference the innkeeper tax to short-term rental dwellings specifically.
What charges are excluded from the 1.5% innkeeper tax?
Excluded amounts include any state or local sales/use tax, any transient room tax or resort communities tax under Utah Code Title 59, Chapter 12, food, beverage, or room-service charges billed separately from the base rate, and telephone, gas, or electric charges not built into the room rate.
Can a hotel offset this tax against other city taxes?
Yes. Section 5.02.030(3) entitles any business paying the innkeeper tax to a credit against the amount of license taxes it owes under Title 6 of the Provo City Code, preventing the same revenue from being taxed twice under both provisions.
Who collects Provo's innkeeper tax and enforces payment?
Businesses report and remit to whoever the City Administration designates for collection, and the City may collect on the same basis and schedule the Utah State Tax Commission uses for the state transient room tax, including contracting with the Commission for enforcement such as levies.

Sources & Official References

Other rules in Provo

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