Transient Occupancy Tax

Hotel: Any structure, any portion of any structure, or any property or portion thereof which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, overnight recreational vehicle and camping park (as defined in Titles 28 and 30 of this code), or other similar structure or portion thereof.

Short-Term Rental (STR): is a property that's rented out for a period of less than 30 days. STRs can be a whole home, a room, or an accessory building. They're also known as vacation rentals, transient rentals, or resort dwelling units.

Rents/Gross Receipts: The consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. (SBMC 4.08.020)

Occupancy: The use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. (SBMC 4.08.020)

Transient: Any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days.  Any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy; provided that an occupant of an apartment unit, constructed under a building permit as such, or in buildings which have been legally converted into apartments, shall not be deemed to be a transient if his or her occupancy is for a period of more than 30 days and with or without such written agreement. (SBMC 4.08.020)

All rents received from stays 30 consecutive days or less and room charges and fees are subject to TOT. Below is a list of common charges and fees that are subject to TOT. This list is not exhaustive and other charges and fees may apply.

• California Tourism Assessment Fee (CTAF)
• Cancellation charges
• Cleaning fees
• Damage charges
• Early check-in fees
• Group attrition charges
• In-room equipment rental fees
• Late check-out fees
• No-Show charges
• Non-refundable deposits
• Parking fees
• Pet fees
• Resort or destination fees
• Room rental revenue
• Service charges
• Smoking charges
• Stolen item charges
• Upgrade room charges
• Violations of hotel policy charges

Compensated and complimentary rooms are not subject to TOT.

Room rental revenue received from stays 30 consecutive days or less are subject to the TBID assessment.

Other charges and fees are not subject to the TBID assessment.

Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax. Any operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent, shall pay a second delinquency penalty of 10% of the amount of the tax in addition to the amount of the tax and the 10% penalty first imposed. (SBMC 4.08.080, SBMC 4.08.090)

In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of one-half of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first become delinquent until paid. (SBMC 4.08.110)

The Accounts Receivable office may approve a waiver for one tax period’s (one month’s) late penalties and interest. This request must be submitted in writing and submitted to the Accounts Receivable office. Only one penalty waiver will be granted per account.

All hotels, motels, and short-term rentals operating within the city are required to register with the Accounts Receivable office within 30 days of commencing operations. Upon registration, a Transient Occupancy Registration Confirmation letter will be issued. This letter includes the operator's business name, the property address, the effective date, and the assigned TOT registration number. The TOT registration number is required on the monthly remittance form.

This Transient Occupancy Confirmation Letter signifies that the person named in the letter fulfilled the requirements by registering with the Accounts Receivable office for the purpose of collecting from transients the transient occupancy tax and remitting the tax to the the Accounts Receivable office. This letter does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel, motel, or short-term rental without strictly complying with all local applicable laws, including, but not limited to, those requiring a permit from any board, commission, department or office of this City. This letter does not constitute a permit. (SBMC 4.08.060)

It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as they may have been liable for the collection of and payment to the City, which records the Accounts Receivable Office has the right to inspect at all reasonable times. (SBMC 4.08.150)

The City of Santa Barbara, in collaboration with HdL Companies (HdL), is conducting a comprehensive Transient Occupancy Tax (TOT) and Tourism Business Improvement District (TBID) Assessment audit review to ensure accurate reporting of taxes and assessments. Notices from HdL regarding this audit review are legitimate and must be responded to in a timely manner. Supporting documentation, requested reports, questions, and disputes should be directed to HdL by calling (559)-221-4710 or emailing TOTAudit@hdlcompanies.com. All audit payments must be mailed in the form of a check, cashier’s check, or money order directly to the City of Santa Barbara at the following address.

Payment Mailing Address:
City of Santa Barbara
Accounts Receivable - TOT
P.O. Box 1990
Santa Barbara, CA 93102-1990