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 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 out-of-town visitors. Several other cities in Johnson County impose transient guest taxes.

Jurisdiction Transient Guest Tax Rate*
City of Mission 9%
City of Overland Park 9%
City of Gardner 8%
City of Leawood 8%
City of Lenexa 8%
City of Olathe 6%
City of Shawnee 6%
*Updated April 2016