Does California Have a Tourism Tax?

By Michael Ferguson

If you’re planning a trip to California, you might be wondering if there is a tourism tax that you need to be aware of. The answer is not straightforward, as it varies depending on the city or county you’re visiting.

Transient Occupancy Tax

In California, the tourism tax is known as the Transient Occupancy Tax (TOT). It’s a tax imposed on guests who stay in hotels or other lodging establishments for less than 30 days. The TOT rate varies by location and can range from 8% to 15% of the room rate.

Cities with TOT

Many cities in California have a TOT in place. For example, San Francisco has a TOT of 14%, Los Angeles has a TOT of 15.5%, and San Diego has a TOT of 10.5%. These taxes are used to fund local services and infrastructure improvements that benefit tourists and residents alike.

Exceptions

There are some exceptions to the TOT rule. For example, if you’re staying in an Airbnb or other vacation rental, you may not have to pay TOT if you’re renting for more than 30 days. Additionally, some cities exempt certain types of lodging establishments from the tax, such as youth hostels or government-owned lodgings.

Tourism Improvement Districts

In addition to TOT, some cities in California have implemented Tourism Improvement Districts (TID). These districts impose an additional fee on guests staying in hotels and other lodging establishments within the district boundaries. The fees are used to fund marketing and promotional activities that promote tourism in the area.

Cities with TID

Cities such as Anaheim and Palm Springs have implemented TIDs, with fees ranging from $1 to $4 per night depending on the location.

Conclusion

In summary, if you’re planning a trip to California, it’s important to be aware of the Transient Occupancy Tax and Tourism Improvement Districts that may apply to your stay. Be sure to check with your lodging establishment or the local tourism bureau to find out what taxes and fees you can expect to pay. With proper planning, you can enjoy your trip while staying within your budget.