New Research: The Rising Price of Hotel Tax Compliance
Summary
A new report highlights the increasing complexity and cost of tax compliance in the lodging industry, including short-term rentals. Hosts are spending significant time on compliance, and many lack confidence in their methods. Consider exploring AI-powered tools to streamline tax processes and free up time for guest experience and growth.
Key Insights
- •Profit margins across the U.S. hotel industry were 4% below 2019 levels in June 2025, signaling continued challenges in an uncertain economic and geopolitical climate.
- •Nearly half of the respondents (44%) from the hotel sector reported that their approach to tax compliance still involves manual or semi-manual processes.
- •40% of hotel operators reported spending between 50 and 100 hours per year solely on trying to achieve and maintain compliance.
Action Items
- ✓Explore and implement the latest methods and technologies, such as AI-powered tools, to streamline and optimize tax compliance.Effort: mediumImpact: high
Tools & Resources
- →Checked In, Taxed Out: The report, “Checked In, Taxed Out: Benchmarking Tax Compliance in the U.S. Lodging Industry” is from Avalara.
Common Mistakes
- ⚠Hotels that continue to rely on manual or outdated methods are sacrificing time, agility, and a critical competitive advantage.
More from Regulations & Compliance
The Green Bay Common Council will consider changes to its short-term rental ordinance. This could involve new regulations or revisions to existing rules. Hosts in Green Bay should stay informed about potential updates and how they might impact their operations.
Local commissioners denied a short-term rental application, suggesting potential regulatory hurdles for new STR operations. This indicates increasing scrutiny on STRs within this locality. Hosts should be aware of potential local restrictions and permitting requirements before investing in or launching short-term rentals.
The Green Bay Plan Commission is updating its short-term rental ordinance. Details are not given, but this news signals potential changes for hosts in the area. Hosts should stay informed about the new regulations to ensure compliance and avoid penalties.
Curated by Learn STR by GoStudioM