Tennessee Local Hotel Tax: The First 30 Days and the 2025 Change

The July 1, 2025 change

Sullivan County's official notice explains a change to Tennessee law effective July 1, 2025. Previously, operators refunded or credited occupancy tax after 30 continuous days. Under the new rule described in the notice, operators remit the first 30 days' occupancy tax and cease collecting it for the remainder of the continuous stay. The notice cites Tennessee Code section 67-4-1404 and Public Chapter 364 (2025).

Do not use an old refund rule

For a new stay under the current rule, do not budget on getting the first 30 days' local occupancy tax refunded simply because the stay continues. This guide concerns that occupancy tax, not an exemption from every state or local sales-tax line. The Department of Revenue separately explains that hotels remit local occupancy tax to the relevant local government.

Check the exact local levy

Ask the hotel which local occupancy tax or private-act levy it collects, its rate, and how the current law applies at that address. Sullivan County's notice confirms the change it administers; it does not supply a rate for Nashville or every Tennessee hotel.

• Obtain a folio separating occupancy tax from sales taxes and fees.
• Keep proof that occupancy is continuous.
• Ask for the current authority if a quote promises a refund of the first month's occupancy tax.