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. 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.
Returns can now be filed online here
QUARTERLY TAX RETURN FORMS
Quarterly Tax Return Form (Excel) - multiple quarter - (will calculate taxes for you!)
For Property Management Company as Operator:
If payment is late, the sum of the following two penalties apply and is calculated based on the number of months delinquent. For number of months delinquent, round up to the nearest whole month.
LATE PAYMENT PENALTY
Up to 1 month late - 10% of taxes due if paid on time
Up to 2 months late - 20% of taxes due if paid on time
Up to 3 months late - 30% of taxes due if paid on time
Up to 4 months late - 40% of taxes due if paid on time
Up to 5 months late - 50% of taxes due if paid on time
INTEREST PENALTY of 1.5%
Number of months delinquent x .015 x taxes due if paid on time = Interest Penalty
TOTAL PENALTY = LATE PAYMENT PENALTY + INTEREST PENALTY
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).