The Local Government (Amendment)(No .2 ) Act 2008, Cap 243, practical guide for implementation of Local Hotel and Local Service tax developed by Local Government Commission, and Nansana Municipal Finance Council.

This is a tax levied and paid by room occupants of a Hotel per room per night. According to the Act, a Hotel is defined as a house intended for accommodating travelers or visitors for payment. By implication a hotel therefore can be a hotel, an inn, a guesthouse, a serviced apartment, a motel or any suitable structure for a commercial residence.

It’s a Legal requirement for any person staying as a visitor at a hotel/ lodge/guest house to pay Local Hotel Tax as provided for by the Local Government Act Cap 243. Local Hotel Tax was introduced in order to regulate hotels activities within the urban authorities and to raise revenue to enable the urban authorities to offer services such as street lighting, roads & Drains Maintenance, garbage collections etc. Therefore, revenue is raised through, among other sources, Local Hotel Tax to fund the cost of these services.

 Hotel owners/ management are obliged to levy and collect Local Government Hotel tax on behalf of Nansana Municipal Council. Local hotel tax collections are recorded on a daily basis in a till book issued by Nansana Municipal Council. All entries in this book are expected to reflect the fair view of transactions taking place at the Hotel.  Hotel Records shall be accessed by Authorized Revenue Officers of the council on request during official time.  Upon approval of the records presented, the Authorized Revenue Officers shall issue Payment Advise Forms (PAFs) to the hotel owners/ managers for payment. It should be noted that, it is the hotel management that is responsible for the collection of Local Hotel Tax.  Payment is done using any of the What is Local Hotel Tax? This is a tax levied and paid by room occupants of a Hotel per room per night. According to the Act, a Hotel is defined as a house intended for accommodating travelers or visitors for payment. By implication a hotel therefore can be a hotel, an inn, a guesthouse, a serviced apartment, a motel or any suitable structure for a commercial residence. Why are you paying? It’s a Legal requirement for any person staying as a visitor at a hotel/ lodge/guest house to pay Local Hotel Tax as provided for by the Local Government Act Cap 243. Local Hotel Tax was introduced in order to regulate hotels activities within the How is Local Hotel tax levied and paid?  Hotel owners/ management are obliged to levy and collect Local Government Hotel tax on behalf of Nansana Municipal Council. Local hotel tax collections are recorded on a daily basis in a till book issued by Nansana Municipal Council. All entries in this book are expected to reflect the fair view of transactions taking place at the Hotel.  Hotel Records shall be accessed by Authorized Revenue Officers of the council on request during official time.  Upon approval of the records presented, the Nansana Municipal Council designated payment platforms or Banks including Online Payment Options (VISA, MasterCard, American Express, Union Pay), Payment Transfer Instructions (EFT, RTGS and Swift), Other Payment Options (Cheque, Mobile Money, Demand draft, Point of Sale)

In cases where part of or all of the Local Hotel tax collected remains un remitted at the end of a financial year, the hotel owners/ managers will be required to pay the outstanding tax including a surcharge of 40% within two months of the notice. If the hotel owners/ managers fail to comply, Nansana Municipal Council may sue the hotel in the courts of law.

The Local Government Hotel Tax shall be levied on room occupants per night according to the categories of the hotel as follows:

Nansana Municipal Council Collection till books

Hotel Receipt books

Hotel registers

Daily return summary forms showing daily rooming lists.