Transient Guest Tax

The Transient Guest Tax is a tax imposed on guests of the city’s hotels or other lodging
facilities. This tax is also commonly referred to as a "bed tax," "hotel occupancy tax," or "motel tax." The tax is determined by the City Council and is currently set at 6%. The City anticipates collecting $923,490 in 2013 which is allocated to the Economic Development Fund. The revenue from the tax goes to the Olathe Chamber of Commerce for economic development and Convention and Visitors Bureau services.

Transient hotel taxes are commonly used by local government entities in Kansas. The State of Kansas produces a quarterly report of Transient Guest Tax Rates, Effective Dates, and Number of Active Accounts. The "tax burden," or responsibility of paying for the tax, is more likely paid by visitors from out-of-town than residents. There are other cities in Johnson County which also use transient guest taxes.