Transient Occupancy Tax (TOT), also known as "hotel tax" or "bed tax," is authorized under the State Revenue and Taxation Code 7280 as an additional source of non-property tax revenue to local government. This tax is levied at a rate of 12% for Hotel/Motels and 14% for Vacation Rentals in the unincorporated areas of Santa Cruz County. Santa Cruz County Revenue and Finance Code 424.030
Within thirty days after commencing business, whichever is later, each operator of any transient occupancy facility, including any hotel, inn, tourist home or house, motel, studio hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other lodging in the unincorporated areas of the County of Santa Cruz renting occupancy to transients, shall register said transient occupancy facility with the tax administrator and obtain from him a "Transient Occupancy Registration Certificate" to be at all times posted in a conspicuous place on the premises. Santa Cruz County Revenue and Finance Code 424.030
No, Transient Occupancy Tax must be charged and tracked separately from the stated room rate.
It shall be the duty of every operator liable for the collection and payment to the county of any tax imposed by this chapter to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the county, which records the Tax Collector shall have the right to inspect at all reasonable times. Santa Cruz County Revenue and Finance Code 424.090
Each operator shall, on or before the last day of the month following the close of each calendar quarter, make a return to the Tax Collector, on forms provided by him, of the total rents charged and received and the amount of tax collected for transient occupancies. Santa Cruz County Revenue and Finance Code 424.080
No tax shall be imposed on (1) any person as to whom, or any occupancy as to which, it is beyond the power of the county to impose the tax herein provided; and (2) any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. No exemption shall be granted except upon a claim therefore made at the time the rent is collected and under penalty of perjury upon a form prescribed by the Tax Collector
In either event, contact our office in person or by telephone so that we can assist you. If you plan on closing your business, then you must return your certificate to us. If necessary, our staff will assist you in preparing a final report. If you are selling the business, we will assist the seller and buyer with the transfer of the Transient Occupancy Certificate.
Contact the Tax Collector’s office and request a new registration form or download the registration form from this website. Complete the form with the new information and return it to the Santa Cruz County Tax Collector.
Transient Occupancy Tax shall not apply to occupancy of a transient occupancy facility owned or operated by a religious, educational or charitable group and used for religious, educational or charitable purposes, which is not conducted for profit and no part of the earnings of which inures to the benefit of any private shareholder or individual. Santa Cruz County Revenue and Finance Code 424.50
Santa Cruz County Treasurer-Tax Collector
Attention: T.O.T.
P.O. Box 5639
Santa Cruz, CA 95063