Overview of Atlanta Hotel Taxes
If you are a hotel owner in Atlanta, get ready to be held liable for a larger than usual sales tax obligation. If you are renting a room from an Atlanta area hotel, then get ready to shell out some extra dollars for your hotel stay.
A 15% tax will be added onto your hotel or motel bill within the City of Atlanta and Fulton County:
- 8% sales tax
- 7% room tax
Note: The rates listed above do not include the additional hotel-motel fee discussed below.
Hotel-Motel Fee Details
Effective July 1, 2015, a $5 hotel-motel fee is imposed on each calendar night a hotel room is rented in Georgia.
Key Exemptions and Clarifications
- The fee no longer applies once the rental of the room becomes an extended stay rental of 31 consecutive nights or more.
- However, it does apply to the first 30 days.
- The fee does not apply to complimentary hotel rooms.
- The fee does apply to hotel rooms provided to hotel employees (at no charge) if the rooms must be included in the employee’s wages for purposes of federal income tax.
Definition of “Hotel Room”
What is a hotel or a motel? Does this include a bed and breakfast or Airbnb accommodation?
Hotel room is defined as a room (or suite of conjoined rooms offered as a single accommodation):
(i) in a hotel
(ii) that is used to provide private sleeping accommodations to paying customers
(iii) that typically includes linen or housekeeping service
A hotel room is usually occupied by transients or travelers who do not enjoy an exclusive right or privilege with respect to the room, but instead merely have an agreement for the private use or possession of the room. A room is a “hotel room” only if the customer has the right to exclude other customers from the room.
Special Situations
Promotional Offers
In a buy two nights, get one free situation (or similar promotions):
- The fee applies to all nights, not only nights paid for by the customer.
Advance Payments
- The fee does not apply to stays on or after July 1 if payment took place prior to July 1.
Sales Tax Application on Fee
- The fee is not subject to sales tax if it is separately stated.
- It is subject to sales tax if it is not separately stated.
Additional Costs to Consider
If you have a car, be sure to consider the price of parking in the hotel garage at an average of $25 per overnight.
Frequently Asked Questions
What is the total hotel tax rate in Atlanta?
The total tax rate on hotel and motel stays in Atlanta is 15%, consisting of an 8% sales tax and a 7% room tax. This does not include the additional $5 hotel-motel fee per night.
Who is exempt from the $5 hotel-motel fee in Georgia?
Guests who stay for 31 consecutive nights or more are exempt starting from the 31st night. Complimentary rooms and rooms provided to employees (not included in taxable wages) are also exempt.
Does the $5 fee apply to promotions like “buy two nights, get one free”?
Yes, the $5 fee applies to all nights of a promotional stay, even if a night is not paid for by the customer.
Is the $5 hotel-motel fee subject to sales tax?
The fee is not subject to sales tax if it is separately stated on the invoice. However, if it is not itemized separately, it becomes taxable.
Are Airbnb or bed and breakfast rentals included in the hotel tax?
Generally, no. A “hotel room” must meet specific criteria, including private sleeping accommodations in a hotel with typical services like linen or housekeeping. Airbnb and B&Bs usually do not meet all these requirements unless they operate like hotels.