Transient Occupancy Tax (TOT)

What is Transient Occupancy Tax?

Transient Occupancy Tax (TOT) is a 10% tax imposed upon the room rate for any transient person(s) renting space in any hotel in Visalia for a period of less than 30 days. The definition of “hotel” includes Short Term Rentals (STR’s).

What is Required by the City of Visalia (COV) for the operation of a hotel or an STR?

Hotel and STR operators must comply with all requirements of Visalia Municipal Code (VMC) including:

Collection and monthly remittance of Transient Occupancy Tax (TOT) to the COV. Please see the additional TOT information provided below.
A valid Business Tax Certificate and semi-annual payment of Business Tax. Please see the City's Business Tax (BT) webpage for more information.
Application for an STR Permit, if applicable. Please see the City’s Short-Term Rental webpage for more information.
Compliance with the Visalia Municipal Code (VMC) section 3.25 "Transient Occupancy Tax".

TOT Collection and Payment Process

The hotel operator shall collect TOT and remit it to the City by the last business day of the month for all TOT collected in the previous month. TOT collected by an operator is to be held in trust for the COV until paid. Failure to pay TOT when due creates a debt that carries penalties and interest and is subject to collection actions. Please see the Visalia Municipal Code Section 3.28 for more information on TOT.

How do I register for payment of TOT?

A TOT registration packet is available to print below or may be requested from the TOT desk of the City of Visalia Finance Department at COV’s City Hall West located at 707 W. Acequia Avenue. The TOT desk may also be reached by phone (559-713-4352) or email ([email protected]). Each hotel or STR operator must complete a registration form and return it to the TOT desk within 30 days after commencing business. Once registered, the operator will receive a monthly courtesy reminder along with the appropriate form for reporting and remitting TOT to the City. Failure to receive the courtesy notice does not relieve the operator of the responsibility to pay TOT on time. TOT paid through online rental services like Airbnb and VRBO must still be reported to the COV monthly using the proper forms, with proof of payment attached.

Download TOT Registration Packet

What is the Penalty for Non-Payment of TOT?

Failure to pay TOT creates a legal debt owed to the City by the hotel (and STR) operator, regardless of whether the tax was collected along with the room rental amount. Failure to collect the tax makes the payment of that tax the operators responsibility. Penalties and interest are applied to this debt as follows:

A penalty of 10% of the tax due will be applied on the first day the payment becomes delinquent, and again 30 days after the delinquent date if the tax remains unpaid, for a total possible penalty of 20%.
Interest of .5% (6% annually) will be applied to the outstanding balance beginning on the delinquency date.
All penalties and interest will become part of the balance of tax due, creating a compounding effect, with subsequent interest and penalties being charged on the entire balance.

Collection and Misdemeanor Charges

Any person owing TOT to the City shall be liable to legal action brought in the name of the City for recovery of the amount due.
Any person who fails or refuses to register for the collections and payment of TOT, fails to provide the required returns, or files a false or fraudulent return, is guilty of a misdemeanor.
For more information on the TOT reporting, remitting, collection, and appeals processes, please review the TOT section of the VMC (Chapter 3.28).

Visalia Tourism Marketing District

The Visalia Tourism Marketing District (VTMD) is an assessment district formed by Visalia hoteliers and the Visalia Convention and Visitors Bureau. The VTMD assessment is paid by all City of Visalia lodging businesses with twenty (20) rooms or more and funds marketing and sales promotion effort for the assessed businesses. The Assessment is collected and administered by the City, under a contract with the Visalia Tourism Marketing District Corporation, which was formed under the District Management Plan to serve as the VTMD Owners Association.

If applicable, the assessment is 2% of gross short-term room rental revenue. The VTMD is reported and paid along with TOT using the monthly TOT tax return. For more information on this assessment district, please see the Management District Plan.