When Is California Tourism Tax Due: A Comprehensive Guide?

Are you planning a trip to California and wondering about the tourism tax? This guide provides everything you need to know about California’s tourism tax, including when it’s due, how it’s calculated, and how SIXT.VN can help you navigate your travel plans. Let SIXT.VN be your trusted companion for exploring Vietnam. Discover seamless travel solutions and create unforgettable memories today with our expert services.

1. What is California’s Tourism Tax (TOT)?

California’s Tourism Tax, also known as the Transient Occupancy Tax (TOT), is a tax levied by cities and counties on the rent paid for temporary lodging. TOT is a tax collected from the Transient and is a percentage of the rent for the occupancy of a structure. Understanding TOT is essential for budgeting your trip and ensuring compliance with local regulations.

The City of San Diego taxes the occupancy of any structure or any portion of any structure. TOT is calculated as a percentage of the rent for the occupancy of a structure or any portion of the structure. The law requires that Operators collect the tax from Transients. Operators hold TOT collected in trust and remit the TOT to the City Treasurer every month. If the Operator fails to collect the tax, the Operator is liable to the City for the amount of the tax due on the amount of taxable rent for the occupancy of the structure or any portion of the structure as if the Transient had paid the tax.

2. Who is Considered a “Transient” in California?

In California, a transient is any person who rents any structure or any portion of any structure for less than one month. This definition is critical for determining whether you are subject to TOT during your stay.

A Transient is any person who rents any structure or any portion of any structure for less than one month. This includes hotels, motels, vacation rentals, and even rooms rented through online platforms like Airbnb or Vrbo. If you are renting accommodation for less than 30 consecutive days, you are typically considered a transient and subject to TOT.

3. What is the Tourism Marketing District (TMD) Assessment?

The Tourism Marketing District (TMD) assessment is a levy on lodging businesses used to promote tourism and events in a specific area. The purpose of the TMD assessment is to promote events and tourism in the City of San Diego. Operators may elect to pass the TMD assessment on to the Transient. Understanding the TMD assessment helps you know the full cost of your accommodation.

Effective Sept. 1, 2016, the TMD assessment is levied on lodging businesses with 70 or more rooms. For the period Jan. 1, 2013, through Aug. 31, 2016, the TMD assessment was levied on all lodging businesses. The Operator may elect to pass the TMD assessment on to the Transient.

4. Can TOT and TMD Be Combined on Guest Folios?

No, TOT and TMD assessments cannot be combined on guest folios. TOT is a tax collected from the transient, while the TMD assessment is levied on the lodging business.

TOT is a tax collected from the Transient and the TMD assessment is levied on the lodging business. The TMD assessment may be passed on to the Transient but must be shown as a separate line item on the folio/receipt. The TOT and TMD assessment must also be reported separately on the monthly return submitted to the City.

5. How Do I Apply for a Transient Occupancy Registration Certificate?

To apply for a Transient Occupancy Registration Certificate, visit the City of San Diego’s online portal or submit an application via email. Operators will receive the certificate via email once the application is processed. This certificate is essential for those renting out properties to transients.

Applications for a Transient Occupancy Registration Certificate may be submitted online. Operators will receive the certificate via email once the application is processed. The number provided on the certificate is the account number associated with the lodging business and should be referenced on all remittances and/or correspondence submitted to our office. Operators may also complete and submit the Application for Transient Occupancy Registration Certificate via email to the Office of the City Treasurer at [email protected].

6. Is Renting a Room Through Airbnb Subject to TOT and TMD?

Yes, renting a room through platforms like Airbnb or Vrbo for less than one month is subject to TOT and TMD assessments. The San Diego Municipal Code (SDMC) requires Operators and/or Owners to obtain a Transient Occupancy Registration Certificate if renting to a Transient. Whether you’re using a property management company or an online service, TOT applies.

If you are renting a room for less than one calendar month, the rental is subject to the TOT. If you rented a room during the period Jan. 1, 2013, through Aug. 31, 2016, then the TMD assessment of 0.55% was also applicable.

The method used to advertise and/or book rentals, whether through a property management company or an online service (such as Vrbo or Airbnb), is not a determining factor. The San Diego Municipal Code (SDMC) requires Operators and/or Owners to obtain a Transient Occupancy Registration Certificate if renting to a Transient. This certificate number is used when remitting the TOT and TMD assessment to the City. For additional questions, please contact our office at 619-615-1530 or [email protected].

7. What Other Taxes or Fees Apply to Transient Rentals?

Property owners who rent out their property for more than six days a year must also remit Rental Unit Tax to the City of San Diego. Additionally, the Short-Term Residential Occupancy (STRO) Ordinance requires a license for all STRO of a dwelling unit, or part thereof, for less than one month within the City of San Diego beginning May 1, 2023. Ensure you are aware of all applicable taxes and fees.

Property owners who rent out all or a portion of their property for more than six (6) days in a calendar year are responsible for remitting Rental Unit Tax to the City of San Diego. Rental Unit Tax is assessed annually, on a calendar year basis, upon anyone who owns, operates, or manages the rental of any residential real estate. This includes single-family residences, multiple-family residences, mobile homes, trailers, apartments, bungalows, hotels, motels, and any property advertised or otherwise held out for lease or rent during the calendar year. For more information, visit: www.sandiego.gov/treasurer/taxesfees/btax.shtml

Additionally, the Short-Term Residential Occupancy (STRO) Ordinance requires a license for all STRO of a dwelling unit, or part thereof, for less than one month within the City of San Diego beginning May 1, 2023. For more information on the Short-Term Residential Occupancy requirements, visit www.sandiego.gov/treasurer/short-term-residential-occupancy.

8. How Can I Report a Neighbor Not Collecting/Remitting TOT?

If you suspect a neighbor is not collecting or remitting TOT, contact the Office of the City Treasurer’s TOT/TMD Administration desk and provide as much information as possible. Providing details like the rental address and owner’s contact information helps ensure compliance.

Contact the Office of the City Treasurer’s TOT/TMD Administration desk at 619-615-1530 or [email protected] and provide us as much information as possible (e.g. address of rental, owner’s name and contact information).

9. Are Cleaning Fees Taxable?

Whether cleaning fees are taxable depends on their nature. Non-refundable cleaning fees are considered part of the rent and are subject to TOT and TMD. Understanding this distinction can help you determine the actual cost of your rental.

It depends on the nature of the charge. If the fee is non-refundable, it is part of what the guest pays for occupancy (i.e., rent) and is, therefore, subject to the TOT and, if applicable, the TMD assessment. Conversely, if the cleaning fee is fully refundable with funds withheld only for specific damages, it is not subject to the TOT and TMD assessment.

10. How Do I Determine if a Transient is Exempt from TOT and TMD?

To determine if a transient is exempt from TOT and TMD, verify their government business travel orders and picture ID. Refer to the TOT Exemption Chart for more guidance. Once verified, the guest must complete the TOT Exemption form.

The guest must provide official government business travel orders and a qualifying picture ID. You can verify if their government agency is listed on USA.gov (link is external). You may also find the TOT Exemption Chart helpful. Once verified, the guest must complete the TOT Exemption form; the operator must sign the TOT Exemption form and retain the completed form for audit purposes. Also, note that nonprofit companies and state officials (other than California) traveling on state business are not exempt from the TOT and TMD assessment.

11. What Happens if I Voluntarily Come Forward to Catch Up on Taxes Owed?

If you voluntarily come forward to catch up on taxes owed, penalties may still apply as they are governed by SDMC §35.0116. While you may avoid further complications, penalties cannot be waived.

No, we do not have the authority to waive penalties; penalties are governed by SDMC §35.0116.

12. Do Property Management Companies Remit a Return for Each Managed Property?

Property management companies do not have to remit a separate return for each property. They can remit their return information on a summary return, ensuring it includes monthly totals per property and the corresponding Transient Occupancy Registration Certificate numbers.

No, property management companies do not have to remit a separate return for each property they manage. Property management companies may elect to remit their return information on a summary return (sample summary return for period after Sept. 1, 2016 through April 30, 2025 (Excel) sample summary return for period after May 1, 2025 (Excel)). Please ensure the summary return includes monthly totals per property and the corresponding Transient Occupancy Registration Certificate numbers.

13. How Can I Remit My TOT and TMD Assessment Return?

You can remit your TOT and TMD assessment return online, by mail, or in person. The City of San Diego offers multiple payment options for your convenience.

There are three ways to pay: online, by mail, or in person.

14. Do I Collect TOT if I Rent My Home for a Minimum of 30 Days?

Whether you collect TOT when renting your home for a minimum of 30 days depends on the specific dates. TOT applies to rentals for less than one month, which is defined as the period from the first calendar day of occupancy to the same day in the next month.

It depends. Operators are required to collect TOT from Transients. As defined in FAQ number 2 above, a Transient is any person who rents any structure or any portion of any structure for less than one month. A month is defined as the period of consecutive days from the first calendar day of occupancy in any month to the same calendar day in the next month following, or the last day of the next month following if no corresponding calendar day exists. This may or may not be 30 days.

Examples include:

• If a guest checks in on Jan. 1 and checks out on Jan. 31, they are not exempt from TOT.
• If a guest checks in on Feb. 3 and checks out on March 3, they are exempt from TOT.
• If a guest checks in on Aug. 31 and checks out on Sept. 30, they are exempt from TOT.

15. What Do I Need to Do for TOT Purposes if I Sell My Hotel or STRO Property?

If you sell your hotel or STRO property, notify the City immediately with the planned dates for ceasing operations and the new owner’s contact information. For hotel properties, a closeout audit will be performed. For STRO properties, review your records to ensure all taxes have been reported and remitted.

For hotel properties, you should notify our office immediately by phone and email and provide the planned dates for ceasing operations and the name and contact information of the person or company that will continue the business operations. We will arrange for a closeout audit to be performed. Keep and maintain all records for the audit. You should also notify the successor of all TOT requirements, including monthly reporting and the need to update the registration for the TOT Certificate.

For STRO properties, you should notify our office of your intentions to cease operations and then review your records for the time period that you rented to transients to make sure you have reported and remitted all tax due. The SDMC allows the City Treasurer to inspect your records to determine the amount of tax due to the City.

16. What Do I Do if I Over-Remitted TOT Last Month?

If you over-remitted TOT last month, you may take a credit on future tax returns up to the amount of the over-remittance. Document the amount and reason for taking the credit. The credit amount cannot exceed the tax due for that month.

You may take a credit on future tax returns up to the amount of the over-remittance and keep records to document the amount and reason for taking the credit. In the present month, you would calculate TOT and TMD as you do normally and then enter a credit amount on the standard TOT return at line 5 for TOT and at line 10 for TMD. If you report and remit using TOT Online Pay, then enter the credit amount in the fields named “Less TOT Credit/Refunded to Non-Transients:” and “Less TMD Credit/Refunded to Non-Transients:”. With either reporting format, the credit amount taken in any month cannot exceed the tax due for that month, so you may need to take the credit over more than one month. Note that the TOT Online Pay application will not accept a transaction for less than $0.01, so carefully enter credit amounts on the online form.

17. Does the City Accept Credit Cards as a Payment Method for TOT?

Yes, the City of San Diego accepts credit cards as a payment method for TOT through the online payment portal. Note that a non-refundable third-party service fee applies per transaction.

Effective October 12, 2023, the City’s payment gateway for the TOT online payment portal changed from Payment Collection Gateway (PCG) to Commerce Payment Portal (CPP). As part of this transition, the City began accepting credit card payments for Transient Occupancy Tax through the online payment portal. Please note that there is a non-refundable third-party service fee per CPP transaction of $1.50 flat fee for e-check, 2.50% fee for credit card payments, and 1.50% fee for debit card payments. This fee is assessed by the third party, Alacriti Payments, LLC, not the City of San Diego. Cash and check payments made by mail or in person do not incur a service fee. For information on ‘pay by mail’ or ‘pay in person’, please visit www.sandiego.gov/treasurer/payments/tottmd.

Additionally, as part of this change, if you have a business or Corporate bank account that has an ACH filter/block, please contact your financial institution and add the following ACH company IDs and names to the account before you complete an online e-check/ACH transaction. Failure to do so may result in your payment being rejected and the assessment of penalties and fees.

Name: Transient Occupancy Tax ACHCompany ID: 5956054878

Name: Alacriti (Third Party Service Fee)ACH Company ID: 2800853509

18. What are the Key Takeaways About California’s Tourism Tax?

Here is a summary of key points about California’s Tourism Tax:

19. How Can SIXT.VN Enhance Your Travel Experience in Vietnam?

Planning a trip to Vietnam? SIXT.VN offers a range of services to make your travel experience seamless and enjoyable. From airport transfers to hotel bookings and guided tours, SIXT.VN ensures you have a hassle-free journey.

Here’s how SIXT.VN can assist you:

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20. What are the Benefits of Using SIXT.VN for Your Travel Needs?

Choosing SIXT.VN for your travel needs comes with numerous advantages:

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SIXT.VN is committed to providing exceptional service and ensuring your trip to Vietnam is unforgettable.

21. How to Plan Your Trip to Vietnam with SIXT.VN?

Planning your trip to Vietnam with SIXT.VN is easy and straightforward:

1. Visit SIXT.VN: Explore our website to discover the range of services we offer.
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With SIXT.VN, planning your dream vacation to Vietnam has never been easier.

22. What are Some Popular Tourist Destinations in Hanoi?

Hanoi, the capital of Vietnam, is rich in history and culture. Some popular tourist destinations include:

• Hoan Kiem Lake: A serene lake in the heart of Hanoi, perfect for a leisurely stroll.
• Old Quarter: A bustling area with narrow streets, shops, and delicious street food.
• Temple of Literature: Vietnam’s first university, showcasing traditional architecture and serene gardens.

23. How Can You Make the Most of Your Stay in Hanoi?

To make the most of your stay in Hanoi:

• Explore Local Cuisine: Sample Vietnamese dishes like pho, bun cha, and banh mi.
• Visit Cultural Sites: Immerse yourself in the history and traditions of Hanoi.
• Engage with Locals: Interact with friendly locals to learn more about their culture and way of life.

24. What Should You Know About Vietnamese Culture Before Visiting?

Before visiting Vietnam, it’s helpful to understand some aspects of Vietnamese culture:

• Respect for Elders: Show respect to older individuals through your words and actions.
• Modest Dress: Dress modestly when visiting religious sites.
• Tipping: Tipping is not mandatory but is appreciated for good service.

25. What are the Top Tips for First-Time Travelers to Vietnam?

Here are some top tips for first-time travelers to Vietnam:

• Stay Hydrated: Drink plenty of water to stay hydrated in the tropical climate.
• Bargain Respectfully: It’s common to bargain when shopping, but do so respectfully.
• Learn Basic Phrases: Learning a few basic Vietnamese phrases can enhance your interactions with locals.

26. How to Stay Safe During Your Trip to Vietnam?

To ensure a safe trip to Vietnam:

• Secure Your Belongings: Be mindful of your belongings in crowded areas.
• Use Reputable Transportation: Opt for reputable transportation services like SIXT.VN.
• Stay Informed: Keep up-to-date with local news and travel advisories.

27. What are the Best Times to Visit Hanoi?

The best times to visit Hanoi are during the spring (March to April) and autumn (September to November) months, when the weather is mild and pleasant.

28. What are Some Must-Try Vietnamese Dishes in Hanoi?

Some must-try Vietnamese dishes in Hanoi include:

• Pho: A traditional noodle soup with beef or chicken.
• Bun Cha: Grilled pork with rice noodles and dipping sauce.
• Banh Mi: A Vietnamese sandwich with various fillings.

29. How Can SIXT.VN Help with Transportation in Hanoi?

SIXT.VN provides reliable and convenient transportation options in Hanoi, including:

• Airport Transfers: Ensuring a smooth transition from the airport to your hotel.
• Private Car Services: Offering comfortable and flexible transportation around the city.

30. What Types of Accommodations Can You Book Through SIXT.VN?

SIXT.VN offers a variety of accommodations to suit different budgets and preferences, including:

• Luxury Hotels: Providing top-notch amenities and services.
• Budget-Friendly Hotels: Offering comfortable stays at affordable prices.
• Boutique Hotels: Showcasing unique styles and personalized service.

31. How to Book a Tour with SIXT.VN?

Booking a tour with SIXT.VN is easy:

1. Visit Our Website: Go to SIXT.VN and browse our selection of tours.
2. Choose Your Tour: Select a tour that interests you and fits your schedule.
3. Book and Confirm: Secure your booking and receive instant confirmation.

32. What are the Benefits of Taking a Guided Tour in Hanoi?

Taking a guided tour in Hanoi offers several benefits:

• Expert Knowledge: Gain insights from knowledgeable guides.
• Convenience: Avoid the hassle of planning and navigating on your own.
• Cultural Immersion: Experience a deeper understanding of Hanoi’s culture and history.

33. How to Get Around Hanoi Efficiently?

Getting around Hanoi efficiently can be achieved through:

• Taxis and Ride-Sharing Services: Convenient for quick trips around the city.
• Public Transportation: Affordable and a great way to experience local life.
• Motorbike Rentals: A popular option for adventurous travelers.

34. What are the Best Shopping Destinations in Hanoi?

The best shopping destinations in Hanoi include:

• Old Quarter: A vibrant area with a wide variety of shops and markets.
• Dong Xuan Market: A large wholesale market offering a range of products.
• Vincom Mega Mall: A modern shopping center with international brands.

35. How to Experience Hanoi’s Nightlife?

To experience Hanoi’s nightlife:

• Visit Ta Hien Street: Known for its lively atmosphere and street beer.
• Explore Rooftop Bars: Enjoy panoramic views of the city from stylish rooftop bars.
• Attend a Water Puppet Show: A unique cultural performance that showcases Vietnamese folklore.

36. What are Some Day Trip Options from Hanoi?

Some popular day trip options from Hanoi include:

• Halong Bay: A stunning natural wonder with towering limestone karsts.
• Sapa: A mountainous region with breathtaking landscapes and ethnic villages.
• Ninh Binh: Known as “Halong Bay on Land” with scenic rivers and caves.

37. How to Prepare for the Weather in Hanoi?

To prepare for the weather in Hanoi:

• Check the Forecast: Stay updated on the weather conditions before your trip.
• Pack Accordingly: Bring lightweight clothing for warm weather and layers for cooler months.
• Stay Hydrated: Drink plenty of water, especially during hot and humid days.

38. What Travel Documents Do You Need for Vietnam?

When traveling to Vietnam, you typically need:

• Passport: Valid for at least six months beyond your intended stay.
• Visa: Required for most nationalities, unless eligible for visa exemption.

39. How Can SIXT.VN Assist with Your Travel Itinerary?

SIXT.VN can assist with your travel itinerary by:

• Providing Expert Advice: Offering insights and recommendations for your trip.
• Customizing Tours: Tailoring tours to your specific interests and preferences.
• Booking Activities: Arranging activities and experiences to enhance your travel adventure.

40. How Can You Contact SIXT.VN for Travel Assistance?

You can contact SIXT.VN for travel assistance through:

• Website: Visit SIXT.VN for information and bookings.
• Hotline/WhatsApp: Call +84 986 244 358 for immediate assistance.
• Address: Visit our office at 260 Cau Giay, Hanoi, Vietnam.

Navigating California’s tourism tax doesn’t have to be complicated. With this comprehensive guide, you’re well-equipped to understand and manage your TOT obligations. And when planning your trip to Vietnam, remember that SIXT.VN is here to provide you with seamless and reliable travel services. Explore our website today and start planning your dream vacation with confidence!