Transient Occupancy Tax

What is Transient Occupancy Tax (TOT) and why is it imposed?

• Transient occupancy tax (“TOT”) is levied on the privilege of using a hotel accommodation. 
• The tax was originally designed to compensate local government for the increased public service costs incurred by serving local tourists.
• Any person staying thirty (30) days or less is deemed transient.
• Each transient is subject to and shall pay a tax in the amount of ten percent (10%) of the rent charged by the operator (hotel).

What are the Operators’ (Hotels) responsibilities?

• Operator’s Duties:
  • Each operator shall collect the tax imposed to the same extent and at the same time as the rent is collected from every transient.
  • The amount of tax shall be separately stated from the amount of rent charged.
• Registration:
  • Each operator shall register their hotel with the finance department and obtain a "transient occupancy registration certificate" to be at all times posted in a conspicuous place on the premises.
• Reporting:
  • Each operator shall, on or before the last day of the month following the close of each calendar quarter, provide the total rents charged and the amount of tax collected for transient occupancies. 
  • Operators are required to complete the TOT Return Form quarterly.  To access the form, please click on this link: TOT Return Form
  • At the time the return is filed, the full amount of the tax collected shall be remitted to the finance department.
• Penalties & Interest:
  • Any operator who fails to remit any tax imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the tax in addition to the amount of the tax.
  • Additional penalties and interests can apply. 
• Record Keeping:
  • Each Operator is responsible for keeping and preserving all records of such tax they were liable to collect for a period of three (3) years.

For more information, please refer to our City Code by clicking on this link: Chapter 16: Transient Occupancy Tax

If you have any further questions, please do not hesitate to contact:
The Finance Department
3101 Center Street
Placerville, CA 95667
(530) 642-5223