Hotel / Motel Operator’s TOT

Overview


Transient Occupancy Tax (TOT), also known as a room tax or bed tax, is authorized under State Revenue and Taxation Code Section 7280, as tax revenue to local government and regulated within the City of Saratoga in accordance with Saratoga Municipal Code Article 5 to 25. The Code states that for the privilege of transient occupancy in any hotel, the City shall assess a tax in the amount of 10% of the rent charged by the operator. TOT is collected by the operator of the hotel at the time the rent is paid.

This guideline is provided in order to highlight specific requirements and simplify the remittance process. The full text of the Saratoga Municipal Code Article 5-25 should be referred to for further detail.
  1. Definitions
  2. Exemptions
  3. Monthly/Quarterly Remittance
  4. Operator Duties
  5. Over 30 Consecutive Days
  6. Taxable Rent
  7. Taxes Held in Trust
  8. Trade

Definitions


Hotel


Per section 5 to 25.020 (a): Hotel means any structure, or any portion of any structure, 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, mobile home or house trailer at a fixed location, or other similar structure or portion thereof.

Occupancy


Per Section 5 to 25.020 (b): Occupancy means 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.


Rent


Per Section 5 to 25.020 (d): Rent means 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 there from whatsoever.

Transient


Per Section 5 to 25.020 (f): Transient means 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 thirty 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 thirty days has expired. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this Article may be considered.