Guam’s 11% Hotel Occupancy Tax: B&B Rate, Exemptions, Penalties

The Guam hotel occupancy tax is an 11% excise tax charged on the nightly rental price of hotel rooms, motels, lodging houses, short-term vacation rentals, and similar transient accommodations. Registered bed and breakfast operations pay a reduced rate of 4%. The tax is collected from the guest, reported by the operator on Form GRT-1, and remitted monthly to the Guam Department of Revenue and Taxation.¹

Who Pays It

The tax applies to any “transient occupant” staying in a hotel, motel, lodging house, bed and breakfast, short-term vacation rental, or similar facility for fewer than 90 consecutive days. Once a guest crosses the 90-day mark at the same location, the tax stops applying to that stay.¹

Short-term vacation rentals booked through platforms like Airbnb or VRBO are fully covered. The GRT-1 return has a dedicated line for “Hotel/Motel/STVR and all others” at the 11% rate.² If you rent out a residential property to visitors on a nightly or weekly basis, you are treated the same as a hotel for tax purposes.

What the 11% Applies To

The tax is calculated on the “rental price charged or paid per occupancy per day.” That language narrows the base to the room charge. Revenue from restaurant operations, laundry, parking, or minibar purchases is not part of the calculation. For all-inclusive packages, the lodging portion must be separated from food, beverage, and activity components, because only the room charge is subject to the 11% tax. The 11% rate has been in effect since April 1, 1995.¹

The 4% Bed and Breakfast Rate

Registered bed and breakfast facilities pay 4% of the rental price instead of 11%. The key word is “registered.” A property must actually qualify and be licensed as a bed and breakfast under Guam law to use the lower rate. Calling your rental a B&B on a listing site is not enough.¹

Exemptions

Three categories are carved out of the hotel occupancy tax:¹

Individual transactions where the charge is less than $1.00.
Property or transactions that cannot legally be taxed under the U.S. Constitution or federal law, for as long as that protection applies.
Religious, charitable, scientific, or educational organizations, hospitals, business leagues, chambers of commerce, civic leagues, and similar entities that have obtained exempt status through the Department of Revenue and Taxation under 11 GCA Chapter 26.

Federal government travel is a common point of confusion. Guam’s statute does not contain a specific exemption for federal employees on official travel. Any exemption for a government traveler would have to fall under the constitutional provision in § 30106(b), covering transactions that cannot legally be taxed under federal law.³ Operators who receive an exemption claim should request documentation and check with the Department of Revenue and Taxation before honoring it.

The Separate 4% Business Privilege Tax

The occupancy tax is not the only tax on a hotel stay. Guam also imposes a Business Privilege Tax on gross income from business activities. For most lodging operators the BPT rate is 4%, and it covers the full scope of the business, including room revenue, restaurant sales, and other services. The statute explicitly says the BPT is “in addition to any other taxes or licenses imposed by the laws of Guam.”⁴

Practically, a hotel’s room revenue faces both the 11% occupancy tax collected from guests and the 4% BPT owed by the business on its own gross income. The occupancy tax passes through to the guest. The BPT is the operator’s own cost of doing business. Treating one as a substitute for the other is a mistake that regularly shows up in audits.

Filing and Payment

The return and payment are due by the 20th day of the month following the reporting period. Taxes collected in January are due by February 20th.¹ Payment can be made at authorized banks, financial institutions, or designated government offices.⁵

The reporting form is the GRT-1, officially titled the Monthly Gross Receipts, Use and Occupancy Tax Return. It covers both the Business Privilege Tax and the hotel occupancy tax in a single document. Part 3 of the form is dedicated to occupancy tax, with separate lines for the 11% rate and the 4% bed and breakfast rate.⁶ The form is available from the Department of Revenue and Taxation and through GuamTax.com.

Penalties

The occupancy tax statute does not contain its own penalty schedule. Section 30103 pulls in the penalty provisions from the Business Privilege Tax law in 11 GCA Chapter 26, Article 1, which govern interest on late payments, penalties for failure to file timely returns, and the procedures for hearings, adjustments, and appeals.¹

The most serious consequence is criminal. Willfully failing to collect the tax from guests, or collecting it and not remitting it, is a felony under § 30105. If the government can show that an operator used collected tax money for personal or business purposes, that alone serves as evidence of willful failure. Brokers who collect taxes on behalf of operators and fail to remit them face personal liability for the tax plus penalties and interest.¹

Operating a lodging facility without a license carries its own escalating fines. A first-offense violation draws a $5,000 fine and a requirement to cease operations within 24 hours. A second offense is $10,000 per day of continued operation, plus a one-year ban on applying for any business license in Guam.²

Recordkeeping

Operators must keep detailed records in English, stored in Guam, for at least five years. The statute specifically requires records of gross proceeds of sales and gross income, along with books, registers of occupants, cash register tapes, and invoices. The Commissioner of Revenue and Taxation or a designated representative can examine these records at any time.¹

Violating the recordkeeping rules is a misdemeanor. For corporate operators, personal liability extends to directors, presidents, secretaries, and treasurers who allow the violation. A conviction triggers mandatory suspension of the business license for at least six months, or the length of any imprisonment plus six months.¹

1
Justia. Guam Code Title 11, Division 2, Chapter 30 – Monthly Excise Tax on Occupancy of Hotel and Similar Lodging House Facilities
2
Guam Visitors Bureau. Lodging Facilities Licensing and Compliance – How to Become a Legally Licensed Accommodations Provider in Guam
3
Defense Travel Management Office. Save on Lodging Taxes in Exempt Locations
4
Justia. Guam Code Title 11, Division 2, Chapter 26 – Business Privilege Tax Law
5
Guam Department of Revenue and Taxation. Form GRT Information and Instructions
6
Department of Revenue and Taxation. Government of Guam Form GRT-1 Monthly Gross Receipts, Use and Occupancy Tax Return