3-year audit finds Memphis hotels owe $333K in ‘bed taxes’
MEMPHIS, Tenn. (AP) – A three-year audit by the city of Memphis has found that 22 percent of hotels and motels are behind a total of more than $333,000 in occupancy taxes.
Memphis Convention & Visitors Bureau President Kevin Kane tells The Commercial Appeal reports (http://bit.ly/1FdeNtn) the city is probably missing out on between $750,000 and $1 million a year in “bed taxes.”
Kane says bed taxes generate roughly $4.2 million per year and are used to pay off debt and promote hospitality.
Kane says the audit highlights long-standing problems with the way Memphis educates owners of hotels and motels about the little-known 1.7 percent tax for stays of fewer than 30 days.
According to the summary report submitted to the city in March, of the 143 hotels and motels audited, 31 owed taxes.
