Bed Tax is also called the Transient Occupancy Tax. It is a county/city tax which is added to any hotel room price. These taxes are helpful in scaling up revenues for several zones and localities, which find new methods of earning more income without putting any extra load on locals.
This usually means a local tax/levy from the Government and local authorities on motels, hotels and similar properties within the area of governance. Those paying the same are visitors and this does not apply to local residents of these areas.
This is the fee that is collected by the municipality, city, county or any other zonal authority for hotel or motel rooms and other temporary accommodation. Exemptions include those staying on Government business or staying for more than a month, among others. Whenever investors wish to invest in these hospitality properties, it should be a mandatory affair to review and analyze bed taxes taken from the same by the local authorities.
