Hi Daniel, I'm responding mainly to make your question more visible, have you tried contacting one of the moderators? If ABB has been collecting & submitting local taxes for you in the past perhaps they have taken care of this but don't quote me to the IRS! I'm no tax lawyer, good luck.
@Daniel7346 You need to look at the wording of the tax in your state/county. Its highly likely that lodging taxes relate to people actually staying so will most probably not apply. You will, of course, be liable for income tax on the payment.
@Daniel7346 Every jurisdiction handles taxes differently and I don't know how it works specifically in yours. But since the grant is a direct payment rather than a sale or a stay, I'd expect that in most cases it will be taxed as Personal Income for the individual recipient.