Exemptions from TOT are granted only when the proper exemption forms have been properly completed at the time the rent is collected and are submitted with the Return of Transient Occupancy Tax Form. Please refer to each exemption form for specific requirements.

• Learn more about exemption qualifications.
  • Exemption certification for non-transient occupants
  • Exemption certification for government officers & employees

A “no show” charge may be imposed when a person making a reservation fails to register by the appointed time. If the basis of a “no show” charge is a day’s rent, the charge is taxable and must be included in the gross rental receipts on the TOT Return Form. If the charge is merely a penal amount, the charge is not taxable. 

Non-mandatory charges for ancillary services are not subject to the TOT, even when reflected on the guest folio. The TOT is levied only on the consideration paid for the privilege of occupying living accommodations. However, a mandatory charge for ancillary services would be taxable, as could be a non-mandatory charge for a service impinging on the normal and reasonable enjoyment of the accommodations. Examples of such are as follows: a mandatory charge for parking regardless of whether the guest used the parking facilities and a non-mandatory charge for a key to access the accommodations, or for the use of water or electricity

Denominated food costs subject to sales tax are excluded from TOT by the "Bradley-Burns Uniform Sales Tax Act."

Rent paid directly by an insurance company operating in the state of California, as defined by Section 28(f) of Article XIII of the California Constitution is not subject to TOT.

The City regularly conducts audits of lodging providers to insure proper collection and administration of the Transient Occupancy Tax. To certify your proper handling of these public tax funds, examiners will expect to find available, as applicable to your operation the following records:

1. Folios, daily reports and monthly rent summaries (and other reports that may be generated from an automated guest accounting system).
2. Schedule of exempt revenue with supporting documentation.
3. Housekeeping reports and reservation reports.
4. Submissions to franchiser, if applicable.
5. Food cost allocation and accounting (if food included in room charge).
6. Transient Occupancy Tax, sales tax and occupation tax returns.
7. General ledger and revenue detail ledger.
8. Bank statements.
9. Documentation to support compliance with any special conditions imposed by the City on your operation.

The examiners may not need to review all of these records. In the event that they are required, they should be assembled at the time of the audit. The ordinance currently requires that for a period of four (4) years, you keep all records that may be necessary to determine the amount of TOT liable for collection. To expedite the process, it is helpful to have a person available who is knowledgeable about the preparation of these records and your operation in general. Usually this is the controller, manager or owner, if owner-run establishment. This person’s assistance will generally be required for less than an hour.