In recent years, policy makers have begun to recognize that noncompliance in collecting local option lodging taxes is a growing problem that if unchecked will ultimately threaten the capacity of local governments to raise revenue in support of their tourism economy. This paper examines compliance with collecting and reporting local option lodging taxes. A conceptual framework is provided for examining tax compliance in this area based on the existing income tax compliance literature. Potential measurement strategies that may be employed to assess the degree of noncompliance with the local option lodging tax are discussed.