Are you planning a trip to California? It’s important to be aware of the tourism tax that is applicable in the state. This tax, also known as Transient Occupancy Tax (TOT), is levied on visitors who stay in hotels, motels, vacation rentals, and other lodging establishments.
What is TOT?
Transient Occupancy Tax (TOT) is a tax levied on guests who occupy lodging facilities for less than 30 consecutive days. This tax is applicable in most cities and counties in California and is collected by lodging operators from their guests.
Who Needs to Pay TOT?
Any guest who stays in a hotel, motel, bed and breakfast inn, vacation rental or any other lodging establishment for less than 30 days needs to pay TOT. The tax rate varies from city to city and can range from 8% to 15% of the room rate.
How Is TOT Collected?
Lodging operators are responsible for collecting the TOT from their guests and remitting it to the government. The amount collected should be clearly indicated on the guest’s bill.
What Is TOT Used For?
The revenue generated from TOT is used for various purposes such as promoting tourism, improving infrastructure, maintaining public services like parks and libraries and funding cultural events.
Exemptions
There are some exemptions to the Transient Occupancy Tax. For instance, if you are staying at a hospital or nursing home for medical treatment or if you are a diplomat on official business, you may be exempt from paying this tax. It’s always best to check with your lodging operator if you think you may qualify for an exemption.
Conclusion
In conclusion, if you’re planning a trip to California and will be staying at a lodging establishment for less than 30 consecutive days, be aware of the Transient Occupancy Tax. It’s always wise to budget for this tax when planning your trip to avoid any surprises. Remember, the revenue generated from TOT is used for promoting tourism and improving public services, so you’re contributing to the growth of the state’s economy by paying this tax.