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4. September 1 Savannah lodging taxes increase

Maureen Salahshoor Denver, CO

September 29, 2023

Lodging taxes in Savannah, Georgia, will increase from 6% to 8% beginning September 1, 2023. The taxes apply to stays in short-term rentals (STRs), hotels, and other lodging establishments.

The increase in the city’s Hotel Motel Tax is the first since 1995 and has been in the works for seven years. State lawmakers approved a bill this spring authorizing the new rate and Governor Brian Kemp signed it in May.

The tax revenues will be divided so the city gets around 37%, Visit Savannah receives around 33%, 14% goes to the convention center, and 15% is used for tourism development. The extra funds will go toward projects that include redevelopment of River Street and the historic Waterworks Building; improvements for trails, sidewalks, and other connections between the Historic District, westside neighborhoods, and the Enmarket Arena; and construction on the Tide to Town trail network. 

Hotel/motel taxes generated more than $27.9 million for the city in 2021. It’s estimated that the 8% tax rate could bring in an extra $12 million per year.

Savannah passed its short-term rental regulations in 2017. The city defines “short-term vacation rentals” as the rental of an entire dwelling unit for 30 days or less, while the short-term rental of a room within an owner-occupied dwelling is defined as a “bed and breakfast homestay.”  

Read on to learn more.