Transient Occupancy Tax (TOT) & Short-Term Rental Compliance

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Important Update

If you are visiting this page after receiving a letter from the Town of Truckee regarding Short-Term Rental compliance requirements, including the Transient Occupancy Tax (TOT), we thank you for your efforts to comply.

The Town of Truckee recently entered into a contract with a consultant, Host Compliance, to analyze homes or rooms offered for short-term rental on the internet in order to verify that properties are also registered with the Town and paying their fair share of taxes.  Host Compliance’s data-mining technology enables the Town to identify properties that are being listed for rent but are not registered with the Town.

At the September 27, 2016 Town Council Meeting, staff presented options for using the online data as it relates to unregistered properties.  Council directed that staff proceed with contacting the non-registered owners to assure compliance with Town rules and to collect all due taxes for the past year and in the future.  Persons knowing of an operator which is not charging occupancy taxes are encouraged to contact us at 530-582-5280 or TOT@townoftruckee.com.  Please read on to learn more about the current compliance requirements.

 


SHORT-TERM RENTAL COMPLIANCE REQUIREMENTS:

  

1. PROPERTY REGISTRATION

Hold current Registration Certificate Number (RCN) within 30 days of commencing business.

 

2. QUARTERLY TAX RETURN

File tax return & pay taxes due.

 10%      Transient Occupancy Tax (TOT)

+ 2%      Truckee Tourism Business Improvement District (TTBID) Assessment

 12%      TOTAL

  

3. REGISTRATION CERTIFICATE NUMBER (RCN)

Beginning November 10, 2016, it is required on all advertisements for transient rentals to list the operator’s certificate number.

  


Transient Occupancy Tax (TOT)

TOT rate is 10% of taxable rents on all short-term rentals in the Town of Truckee.

Transient Occupancy Tax, also known as bed tax, is a lodging tax paid by short-term renters/lodgers, collected by property owners (hotels, vacation rentals, etc.) and remitted to the Town of Truckee. Transient Occupancy Tax is authorized under State Revenue and Taxation Code Section 7280, as an additional source of non-property tax revenue to local government, and was adopted by Truckee’s Town Council in 1993. Prior to 1993 and the incorporation of the Town of Truckee, the Transient Occupancy Tax was collected by Nevada County, the municipal authority of the area.

Additionally, the Town’s Municipal Code Chapter 3.24 states that “every operator of a hotel in the Town of Truckee for stays of less than thirty-one (31) continuous nights shall collect the tax on the amount of rent from the occupant.” Each Transient (lodger) is subject to and shall pay a tax in the amount of ten (10%) percent of the rent charged by the operator (hotel, owner of property). It is the operator’s duty to pay the tax to the Town of Truckee. A hotel is defined as 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, but is not limited to:  Hotel, motel, inn, vacation home, guest house, room, apartment, studio hotel or bed & breakfast.

Amounts are General Fund revenues and used for general business of the Town including road maintenance, snow removal, trail operation & maintenance, police services and other Town business.

 

 


Truckee Tourism Business Improvement District (TTBID) Assessment

Per TTBID, a 2% assessment of taxable rents must be paid on all short-term rentals in the Town of Truckee. 

On September 22, 2015, the Truckee Town Council adopted a Resolution of Formation for a Truckee Tourism Business Improvement District (TTBID), led by the Truckee Donner Chamber of Commerce.  This benefit assessment district helps fund marketing and sales promotion efforts to improve tourism with the specific benefit of generating additional room night sales.

As of October 1, 2015, the TTBID Committee added a 2% assessment on all short-term rentals, which would be collected by the property owner or manager in addition to the Transient Occupancy Tax (TOT).  Amounts are remitted to the Truckee Donner Chamber of Commerce and the TTBID Board is responsible for determining its use in accordance with its enabling Management Plan. For more information please see the documents listed below that were mailed out with the quarterly TOT Tax Returns on September 29, 2015.   

Truckee Vacation Rental Owner Letter & Truckee Lodging Business Letter

For more information, please contact Lynn Saunders, President/CEO Truckee Donner Chamber of Commerce at Lynn@Truckee.com or 530-587-8808.


PROPERTY REGISTRATION

A new operator must register their short-term rental property with the Town’s Administrative Services Department within 30 days of commencing business (when you begin advertising the unit and it is available for rent). There is no registration fee and is a one-time registration. Homeowners who own and rent multiple properties within Truckee need to complete a new registration form for each property address.

Operators can register online or by mailing in a registration form.  Once the registration form is received, a completed Registration Certificate will be mailed to the operator. The Registration Certificate must be posted at all times in a conspicuous place on the premises. Including the certificate within a guest book is also acceptable.  Beginning November 10, 2016, it is required on all advertisements for transient rentals to list the operator’s certificate number (Registration Certificate Number (RCN)).

If property has sold or been removed from short-term rental market, please fill out the Request for Inactive Status, an online form. 


Property Management Company Rentals

Property managers need to keep a complete property list on file with the Town of Truckee at all times. If you are a new Property Management Company, please contact the Town at (530) 582-5280 or TOT@townoftruckee.com and we will send you a form to have you list all properties managed by the company. 


QUARTERLY TAX RETURN

A tax return for Short-Term Rentals must be filed quarterly. Short-Term Rental taxes include the combined total of 10% Transient Occupancy Tax (TOT) plus 2% Truckee Tourism Business Improvement District (TTBID) Assessment, or 12% total. See below for definitions of what must be taxed. Once property is registered, the Administrative Services Department will mail a tax return to each operator following the last day of each quarter. At this time, the only accepted form of payment is check. Completed Quarterly Tax Returns and any taxes due are subject to late payment penalties and interest if the payment is not postmarked by the first of the month following the end of a quarter. See the Quarterly Tax Return Form for calculation of late payment penalties and interest.

 

Quarter Ending Taxes Due (Postmark)
March 31 May 1
June 30 August 1
September 30 November 1
December 31 February 1

 

Property management companies complete an electronic Quarterly Tax Return Form for all short-term rental properties each quarter. Note: this form is different than the tax form for Property Owners.  Here are some helpful instructions for filling out this form.


What items do I need to pay taxes on (i.e. taxable rents/receipts)?

Taxable rents/receipts include, but are not limited to, nightly rents, weekly rents, standard cleaning fees, cancellation charges, pet fees, forfeited deposits, internet charges, late check-out fees, extra person fees, resort fees and insurance premiums.

Taxable rents/receipts exclude, but are not limited to, equipment charges (i.e. roll-away beds, cribs, etc.), refundable deposits, optional insurance premiums, valet services, parking permits/fees, golf fees, phone charges, in-room movie charges and items subject to CA Sales tax (i.e. taxable meals).


Forms & Documents:

PROPERTY REGISTRATION FORMS 

Property Registration Form (Online)

Property Registration Form (PDF)

Inactive Property Form (Online)

 

QUARTERLY TAX RETURN FORMS

NEW!!!  Quarterly Tax Return Form (Excel) - multiple quarter - (will calculate tax for you!)

Quarterly Tax Return Form (PDF) - multiple quarter

Quarterly Tax Return Form (PDF)

Quarterly Tax Return Form - Zero Rent (Online)

 

For Property Management Company/Operator:

Property Registration - email TOT@townoftruckee.com or call 530-582-5280

Quarterly Tax Return Form (Excel)

Quarterly Tax Return - Filing Instructions (PDF)

 

Other:

Registration Certificate Example (PDF)

Rental Receipt Sample (Excel)

Rental Receipt Template (Excel)

 


Notice to our Customers: When you provide a check as payment, you authorize us either to use the information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. For inquiries, please call the Town of Truckee Finance Department at (530) 582-7700

 


  The Small Tax That Does Big Things