Why Most Contractors Don't Know This
Hotel and short-term lodging taxes are classified as transient occupancy taxes in nearly every U.S. state. "Transient" almost universally means fewer than 30 consecutive days. Once your worker's stay crosses that threshold — same occupant, same unit — the legal basis for the tax disappears.
The problem is that hotels rarely volunteer this information, and most contractors book week-to-week out of habit. The result is 6–10% in tax paid on every lodging dollar that legally doesn't have to be paid.
State-by-State Snapshot
| State |
Exemption Trigger |
Notes |
| Nebraska |
30+ consecutive days |
Neb. Rev. Stat. § 77-2701.16. Eliminates 5.5% state sales tax + 1% lodging tax. |
| Texas |
30+ consecutive days |
Written permanent-resident notice can trigger exemption from day one. |
| Colorado |
30+ days |
State 2.9% sales tax exempt. Local tax thresholds vary by municipality. |
| California |
30+ days |
Transient occupancy tax (TOT) does not apply after 30 consecutive days. |
| Washington |
30+ consecutive days |
Retail sales tax on lodging lifts at the 30-day mark. |
| Tennessee |
30+ days |
Permanent-resident status recognized; sales tax on accommodations does not apply. |
| Connecticut |
31+ days |
Exempt from day 31 forward — not retroactive to day one. |
| Florida |
6+ months |
Longer threshold. Short-term crew placements typically will not qualify. |
| NH, OR, MT |
No lodging tax |
Three states impose no statewide lodging or sales tax at all. |
County and municipal lodging surcharges may apply independently. Verify local rates for each project location.
Nebraska in Detail
Neb. Rev. Stat. § 77-2701.16
Nebraska defines a "transient" occupant as one who occupies lodging for fewer than 30 continuous days to the same person. Stays of 30 or more consecutive days to the same occupant are exempt from both the 5.5% state sales tax and the 1% state lodging tax — with no formal application required.
Estimated savings: $1,400–$2,100/month for a crew of 10 at $85/night.
The statute is straightforward. No special permit, no pre-approval — the exemption is automatic once the occupancy agreement is structured correctly. The key is documentation: a signed agreement before check-in, showing the same occupant for 30+ consecutive days.
Compliance Checklist
To qualify for the exemption in Nebraska (and most states), confirm all of the following before your crew checks in:
- ✓Occupancy agreement covers a minimum of 30 consecutive days for the same occupant.
- ✓Lease or occupancy agreement is signed and dated before check-in.
- ✓Occupant name is consistent across all 30+ days — not rotated workers sharing one booking.
- ✓Property manager or host is notified in writing that this is a 30-day+ stay.
- ✓Invoicing separates housing cost from any services (meals, cleaning) to avoid bundling issues.
- ✓Texas only: written permanent-resident notice filed with the operator if seeking day-one exemption.