Smyrna, TN Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Who is taxed
- Transients occupying a hotel room for less than 30 continuous days
- Rate
- Set by the Town Council's annual fee schedule ordinance
- Remittance due
- By the twentieth day of the month after collection
- Operator allowance
- 2% of tax due, if payment is not delinquent
- Late interest and penalty
- 12% per annum plus 1% per month or fraction
- Record retention
- Three years from December 31 of the taxable year
- Collecting official
- Town Clerk/Coordinator
Summary
The Town of Smyrna, Tennessee levies a privilege tax on transients who occupy a hotel room for less than 30 continuous days. The Town Council sets the rate in its annual fee schedule ordinance, operators add it to each invoice, and remittance is due to the Town Clerk/Coordinator by the twentieth of the following month.
A privilege tax is hereby levied in the town, upon the privilege of occupancy in any hotel by a transient in an amount not to exceed the limits established in T.C.A. §§ 67-4-1401 et seq., of the consideration charged by the operator. The rate of the tax shall be set by the annual fee schedule ordinance of the Town Council. The tax imposed is a privilege tax upon the transient occupying such room and is to be collected and distributed as herein provided. ... (1)The tax hereby levied shall be remitted by all operators who lease, rent, or charge for any rooms or spaces in hotels to the Town Clerk/Coordinator no later than the twentieth day of each month next following such collection from the transient. ... An operator shall be liable for interest on such delinquent taxes from the due date at the rate of 12% per annum, and in addition for a penalty on such taxes of 1% for each month or fraction thereof that such taxes are delinquent.
Full Breakdown
Title 5, Chapter 4 of the Smyrna Municipal Code governs the hotel/motel tax. Section 5-402 levies a privilege tax on the privilege of occupancy in any hotel by a transient, measured against the consideration the operator charges. The amount cannot exceed the limits in T.C.A. §§ 67-4-1401 et seq., and the actual rate is not written into the chapter: the Town Council sets it each year in the annual fee schedule ordinance. The tax falls on the transient, while the operator collects it and owes it to the town.
The definitions in § 5-401 set the reach. A hotel is any structure or portion of a structure occupied or intended for occupancy by transients for dwelling, lodging, or sleeping, and the list includes hotels, inns, tourist courts, tourist camps or campgrounds, tourist cabins and motels, plus any place where rooms, lodgings, or accommodations are furnished to transients for a consideration. Occupancy means use or possession, or the right to it, for a period of less than 30 continuous days. Consideration counts money, goods, labor, or anything else received, with no deduction, though a complimentary room with no charge carries no consideration. The tax collection official is the Town Clerk/Coordinator.
Under § 5-403 the operator adds the tax to each invoice and gives or sends it to the transient, keeping a copy filed by month. Section 5-404 requires remittance to the Town Clerk/Coordinator no later than the twentieth day of each month following collection. The operator collects the tax when the invoice is presented, whether before, during, or after the stay. The operator keeps 2% of the tax due as compensation, but only if the payment was not delinquent. Refunds or credits go to persons and operators for occupancies lasting more than 30 continuous days.
An operator cannot advertise that the tax will be absorbed, left off the rent, or refunded (§ 5-405). Records must be kept for three years beginning December 31 of the year of the taxable event (§ 5-407), and the tax official can inspect them at all reasonable times. Section 5-412 requires an annual audit of all operators with quarterly reports to Council. The proceeds go to the town's General Fund (§ 5-410), and the tax is in addition to every other tax or fee (§ 5-411).
Violations & Fines
Under § 5-406, taxes not remitted to the Town Clerk/Coordinator by the due date are delinquent. The operator owes interest at 12% per annum from the due date plus a 1% penalty for each month or fraction of a month, and both become part of the tax. Each knowing and willful refusal to collect or remit is a Class A misdemeanor, and each day is a separate offense.
Frequently Asked Questions
Who sets the hotel tax rate in Smyrna, Tennessee?
When must a Smyrna hotel operator send in the tax?
Does the tax apply to stays of 30 days or more?
Can a hotel say it will pay the tax for the guest?
What happens if an operator pays late in the Town of Smyrna?
Sources & Official References
Other rules in Smyrna
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How other cities in Rutherford County handle transient occupancy tax.