Spring Hill, TN Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 4% of the consideration charged by the operator
- Short-term rentals
- Included in the code's hotel definition
- Due date
- 20th day of each month for the preceding month
- Collection allowance
- Hotel deducts 2% of the amount paid
- Late payment
- 12% per annum interest plus 1% penalty per month
- Transient stay
- Occupancy for less than 30 continuous days
- Records
- Kept for three years, open to city inspection
Summary
The City of Spring Hill, Tennessee levies a 4% privilege tax on the consideration charged by the operator of any hotel, and the code defines hotel to include short-term rental units and campgrounds. Operators pay by the 20th day of each month for the prior month, keep 2% for collecting, and owe 12% annual interest plus a 1% monthly penalty on late taxes.
HOTEL and/or MOTEL. Any structure or space, or any portion thereof, that is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes, and includes ... short-term rental units, primitive and recreational vehicle campsites and campgrounds, or any place in which rooms, lodgings or accommodations are furnished to transients for consideration. ... (A) Pursuant to the provisions of Tenn. Code Ann. § 67-4-1401 et seq, and specifically 567-4-1402 as amended by Public Chapter 496, there is hereby levied a privilege of occupancy tax in any hotel of each transient. From and after the operative date of this chapter the rate of the levy shall be 4% of the consideration charged by the operator. This privilege tax shall be collected pursuant to and subject to the provisions of state law.
Full Breakdown
Title 9, Chapter 7, adopted by Ord. 21-19B on 8-16-2021, levies the tax under Tenn. Code Ann. § 67-4-1401 et seq. The rate is 4% of the consideration charged by the operator, imposed on each transient, meaning a person who occupies a room, lodging or accommodation for less than 30 continuous days. Consideration counts money, goods, labor or other value with no deduction, but complimentary space where no consideration is charged or received does not trigger the tax. The definition of hotel and/or motel in § 9-701 reaches short-term rental units, primitive and recreational vehicle campsites and campgrounds, and any place furnishing rooms, lodgings or accommodations to transients for consideration.
For rentals specifically, § 20-504(H) makes the short-term rental permit holder responsible for collecting and remitting all applicable hotel-motel and sales taxes, and § 20-503(C) puts the hotel-motel tax certification on the posted rental permit. Operators need a hotel permit from the City Administrator or designee. Permits are not transferable and expire on the last day of December (§§ 9-702 to 9-704). The City Administrator or designee is the authorized collector. Payment is due no later than the 20th day of each month for the preceding month, and the hotel deducts 2% from the amount paid to cover its collection cost.
Operators file a monthly return under oath, are audited at least once per year, and must keep tax records for three years. Proceeds go to the general fund or another city fund and must be used exclusively for the promotion of Tourism and Tourism Development.
Violations & Fines
A hotel operator who pays late owes interest at 12% per annum from the due date plus a penalty of 1% for each month or fraction of a month the tax stays delinquent (§ 9-710). Operating a hotel in the city without the City Administrator's permit is unlawful under § 9-702. The City Administrator audits each operator at least once per year and reports to the Board of Mayor and Alderman quarterly (§ 9-711). The chapter prints no criminal fine amount.
Frequently Asked Questions
Does the tax apply to short-term rentals in Spring Hill?
When is the tax due and what happens if it is late?
Does a stay of a month or more trigger the tax?
Where does the money go?
Sources & Official References
Other rules in Spring Hill
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