(a) Taxes collected by an operator that are not remitted to the tax collection official on or before the due dates are delinquent.

Attorney's Note

Under the Tennessee Code, punishments for crimes depend on the classification. In the case of this section:
ClassPrisonFine
class C misdemeanorup to 30 daysup to $50
For details, see Tenn. Code § 40-35-111

Terms Used In Tennessee Code 7-4-106

  • Month: means a calendar month. See Tennessee Code 1-3-105
  • Operator: means the person operating the hotel, whether as owner, lessee or otherwise. See Tennessee Code 7-4-101
  • Tax collection official: means the department of finance of the county or municipality, as applicable, or the county clerk, if so designated by ordinance of the legislative body of any municipality having a metropolitan form of government and a population of more than four hundred fifty thousand (450,000), according to the 1990 federal census or any subsequent federal census. See Tennessee Code 7-4-101
  • Transient: means any person who exercises occupancy or is entitled to occupancy for any rooms, lodgings or accommodations in a hotel for a period of less than thirty (30) days. See Tennessee Code 7-4-101
(b) An operator shall be liable for interest on such delinquent taxes from the due date at the rate of eight percent (8%) per annum, and in addition for penalty of one percent (1%) for each month or fraction of a month that such taxes are delinquent. Such interest and penalty shall become a part of the tax required in this chapter to be remitted.
(c) Willful refusal of an operator to collect or remit the tax or willful refusal of a transient to pay the tax imposed is a Class C misdemeanor.
(d) Any fine levied in this chapter shall be applicable to each individual transaction involving lodging services paid by a customer to the operator in those cases when the operator fails or refuses to pay the tax payable.
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