It might be reasonable in this case to ask why the hotels have to pay a special tax. Why shouldn't they just collect sales tax like every other business?
Because visitors don't pay taxes or elect politicians. So when the cities need to balance their budget and vote on a new revenue stream guess where it's coming from? Property and sales tax increases are widely unpopular so politicians look for revenue that won't impact their career: cigarettes, liquor, gambling, and hotels.
Because renting out a hotel room is not a sale. Ergo, a sales tax does not apply. An occupancy tax is the tax levied on short-term leases (i.e.,, hotels).
It's mainly because (a) sales taxes are much less than these occupancy taxes, and (b) socking it to the visitor has no political repercussions; they're not going to vote in the elections anyways.
