TRANSIENT OCCUPANCY TAX (TOT) continued
(Commonly Referred to as Hotel Tax)

How are hotel taxes collected?
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of ten percent of the rent charged. These taxes are collected by the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel.

What are the operator's duties?
The operator shall collect the tax imposed on the transient at the same time as the rent is collected. If the operator collects the rent but fails to collect the tax imposed for any reason, the City shall require the operator to pay such tax. The amount of tax shall be separately stated from the amount of the rent charged and each transient shall receive a receipt for payment from the operator. A duplicate copy of this receipt shall be kept by the operator.

What if I cease operations of the hotel?
Each operator shall notify the Finance department within ten days upon the cessation of business for any reason and shall make his/her books and records available for audit. Each operator, upon cessation of business for any reason, shall, on or before the same day of the next month following the cessation of business or on the last day of the month is no corresponding day exists, make a return to the Finance department on forms provided of the total taxable rents charged, the amount of tax collected for the reporting period, remittances made, if any, and the balance of tax due. At the time the return if filed, the full amount of the balance of the tax due, if any, shall be remitted to the Finance department.

When are payments due?
Monthly payments shall be due and payable on or before the last day of the month immediately following the month for which the payment is due.