Bed tax, also known as occupancy tax or lodging tax, is a fee imposed by local governments on guests who stay at hotels, motels, or other lodging establishments. It is usually calculated as a percentage of the room rate and is collected by the lodging operator on behalf of the government. The revenue generated from bed tax is often used to fund tourism-related initiatives, infrastructure projects, or local services within the community.
What is a bed tax and how is it calculated?
A bed tax, also known as a lodging tax or hotel tax, is a tax imposed on accommodations such as hotels, motels, and bed and breakfasts. It is typically calculated as a percentage of the room rate charged to guests.
How is bed tax revenue used by local governments?
Bed tax revenue is commonly used by local governments to fund tourism-related initiatives, infrastructure projects, and destination marketing efforts aimed at attracting visitors to the area.