What Is California Tourism Tax?

By Michael Ferguson

If you’re planning a trip to California, it’s important to understand the state’s tourism tax. This tax is imposed on visitors who stay in hotels, motels, and other types of lodging accommodations. In this article, we’ll take a closer look at what the California tourism tax is, how it works, and what you need to know as a traveler.

What Is the California Tourism Tax?

The California tourism tax is also known as the Transient Occupancy Tax (TOT). It is a tax that is collected by cities and counties throughout the state on short-term lodging rentals. This includes hotels, motels, vacation rentals, and other types of accommodation where guests stay for less than 30 consecutive days.

How Does It Work?

The TOT rate varies depending on the city or county where you are staying. In general, the rate ranges from 8% to 15% of the cost of your room per night. This means that if your hotel room costs $100 per night and the TOT rate is 10%, you would pay an additional $10 per night in taxes.

The TOT is usually collected by the lodging establishment at the time of check-in or check-out. The establishment then sends this money to the local government agency responsible for collecting and distributing these funds.

What Is It Used For?

The revenue generated by the TOT is used to fund various services and programs that benefit visitors and residents alike. These may include:

  • Promoting tourism through advertising campaigns
  • Maintaining public facilities such as parks and beaches
  • Funding public safety services like police and fire departments
  • Supporting local arts organizations
  • Improving transportation infrastructure

What Do Travelers Need to Know?

As a traveler, it’s important to factor the TOT into your budget when planning your trip to California. Make sure you understand the rate for your specific lodging accommodations and budget accordingly.

It’s also worth noting that some lodging establishments may charge additional fees on top of the TOT. These can include resort fees, parking fees, and other surcharges. Be sure to read the fine print before booking your stay so you’re not caught off guard by unexpected charges.

Conclusion

The California tourism tax is an important source of revenue for cities and counties throughout the state. By understanding how it works and what it’s used for, travelers can better plan and budget for their trips to this beautiful part of the country. Remember to factor in the TOT when booking your lodging accommodations, and always read the fine print to avoid unexpected fees.