What is local occupancy taxes?

Local occupancy taxes are taxes imposed by local governments on guests who rent accommodations, such as hotels, motels, or vacation rentals. The revenue generated from these taxes is typically used to fund tourism-related initiatives, infrastructure, and local services. The rates and regulations regarding these taxes can vary widely by location. They are often added as a percentage of the rental cost and are collected by the property owner or manager on behalf of the local government.