What Is a State Occupancy Tax?

A state occupancy tax is a tax some states assess for renting a room or space in a hotel, motel, or bed and breakfast, explains the Texas Comptroller of Public Accounts. Texas charges a 6 percent tax when the room rental cost is at least $15 daily, as of 2015.

The term "hotel" includes inns, ski lodges, apartment hotels, and some cabins, cottages and bungalows, according to the New York State Department of Taxation and Finance. States such as Texas require condominium and homeowners who rent their homes or rooms in them to collect the tax from temporary renters, just as hotels collect the tax from their guests. Under certain circumstances, an organization may receive an exemption from the occupancy tax, notes the Texas Comptroller of Public Accounts.