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County trustee reports small net shortfall in quarterly hotel‑motel occupancy audit
Summary
Montgomery County trustee Kimberly Wiggins and auditor Caroline Vickrey reported a quarterly hotel‑motel occupancy tax audit showing $926.84 in overpayments and $2,100.12 in underpayments; staff described collection practices, short‑term rental reporting, and the current allocation of receipts.
Montgomery County Trustee Kimberly Wiggins reported on March 3 that the county's quarterly hotel‑motel occupancy tax audit found a small net shortfall and reminded commissioners how collections are used.
Wiggins told the commission the audits are performed to ensure hotels remit required occupancy tax and to return amounts that do not belong to the county. "These audits are conducted in compliance with the Bridal Act of 1979," she said, adding the process helps identify exempt guests and assists hoteliers with correct reporting.
Caroline Vickrey, an auditor with Stone, Rudolph and Henry, said auditors tested 11 hotels this quarter and carried three forward that could not be audited before the reporting period closed. "This quarter, we noted a total overpayment of $926.84 and total underpayment of $2,100.12," Vickrey said. She also said four hotels were tested without exception.
Wiggins updated commissioners on collections and follow‑up: two hotels have paid outstanding balances, one acknowledged a balance and agreed to remit by March 3, and one had arranged a December payment that was satisfied. She said common errors among hoteliers include miscalculating penalty and interest, misusing reporting forms, and misunderstanding the 30‑day occupancy exemption rule.
Wiggins reviewed recent annual totals the county has reported: $4,600,000 in occupancy tax for 2022 and about $4.7 million for 2023. She said short‑term rentals began remitting to the Department of Revenue after a state law signed by Governor Bill Lee took effect Jan. 1, 2021; those revenues are received by the county one month in arrears. For short‑term rental receipts the trustee cited, the county collected $298,000 in 2022 and about $438,000 in 2023. Wiggins also presented January month‑to‑date figures and offered to provide prior years' collection reports on request.
Wiggins said the county does not remit refunds but allows hotels to claim credits on subsequent monthly reports; hotels may elect to issue refunds to guests if they determine a refund is appropriate. She closed by restating the county's current allocation of occupancy tax receipts: 25% to Clarksville's general fund, 50% to the tourism promotion fund, and 25% to the county general fund.
No formal vote or action was recorded during the informal meeting on the audit presentation; Wiggins and Vickrey answered commissioners' questions and offered additional follow‑up information.
The county plans to continue quarterly testing and to carry forward hotels that could not be audited this quarter.
