The report examines how U.S. hotel operators and short-term rental hosts are struggling to keep up with an increasingly complex and fragmented lodging tax environment, based on a survey of 500 industry respondents conducted in late 2025. It finds that tax compliance consumes significant time and resources, with many operators spending dozens or even hundreds of hours each year managing registrations, varying tax rates, filings, and reporting requirements across jurisdictions. Nearly half of respondents say they are only somewhat confident they are fully compliant, reflecting widespread uncertainty as regulations tighten and enforcement increases, particularly for short-term rentals that previously faced less scrutiny. While automation and AI-powered tools are seen as critical to easing the burden, adoption remains cautious due to concerns around accuracy, cost, and trust. The report concludes that closing this technology confidence gap and modernizing systems will be essential as tax rules continue to evolve and enforcement becomes more aggressive across the lodging sector.
