(a) The tax levied shall be remitted by all operators who lease, rent or charge for rooms or spaces in hotels within the municipality, to such officer as may by the ordinance be charged with the duty of collection of that tax, the tax to be remitted to such officer not later than the twentieth day of each month for the preceding month. The operator is required to collect the tax from the transient at the time of the presentation of the invoice for occupancy as may be the custom of the operator, and if credit is granted by the operator to the transient, then the obligation to the municipality entitled to such tax shall be that of the operator.

Terms Used In Tennessee Code 67-4-1405

  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Month: means a calendar month. See Tennessee Code 1-3-105
  • Municipality: means an incorporated city or town or a county, but does not include a county with a metropolitan form of government. See Tennessee Code 67-4-1401
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Occupancy: means the use or possession, or the right to the use or possession, of any room, lodgings or accommodations in any hotel. See Tennessee Code 67-4-1401
  • Operator: means the person operating the hotel, whether as owner, lessee or otherwise. See Tennessee Code 67-4-1401
  • Short-term rental unit: means a residential dwelling that is rented wholly or partially for a fee for a period of less than thirty (30) continuous days and does not include a hotel as defined in §. See Tennessee Code 67-4-1401
  • Short-term rental unit marketplace: means a person or entity, excluding a vacation lodging service, that provides a platform for compensation, through which a third party offers to rent a short-term rental unit to an occupant. See Tennessee Code 67-4-1401
  • Transient: means any person who exercises occupancy or is entitled to occupancy of any rooms, lodgings or accommodations in a hotel for a period of less than thirty (30) continuous days. See Tennessee Code 67-4-1401
(b) For the purpose of compensating the operator in accounting for remitting the tax levied pursuant to this part, the operator shall be allowed two percent (2%) of the amount of the tax due and accounted for and remitted to the officer in the form of a deduction in submitting the operator’s report and paying the amount due by such operator; provided, that the amount due was not delinquent at the time of payment.
(c) Notwithstanding this part to the contrary, on or after January 1, 2021, the tax levied pursuant to this part, when levied upon the occupancy of a short-term rental unit secured through a short-term rental unit marketplace, must be collected and remitted in accordance with chapter 4, part 15 of this title.
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