October 8, 2024
San Diego is a popular tourist spot known for its beautiful beaches, cultural attractions, and lively nightlife. To help fund and improve the tourism industry, the city charges a Transient Occupancy Tax (TOT) on short-term lodging rentals. This tax helps support various programs that benefit both visitors and the local economy.
The Transient Occupancy Tax, or TOT, is a tax charged on renting any place to stay for less than a month. Lodging operators collect this tax from guests when they pay and then send it to the City Treasurer's Office every month.
In San Diego, a "transient" is anyone who stays or is allowed to stay in a rental property for less than one month. This includes hotels, motels, vacation rentals, short-term rentals (like houses, condos, or rooms), RV parks, and campgrounds.
If you rent out property within San Diego's city limits to transients for less than a month, you need to get a Transient Occupancy Registration Certificate. This certificate proves you are following the city’s rules and is necessary to pay the TOT.
You can apply for the certificate online, by email, or by mail. After your application is approved, you’ll get the certificate by email, which will include an account number you’ll need to use when sending payments or communicating with the City Treasurer's Office.
Lodging operators must display the Transient Occupancy Registration Certificate on their property at all times. Also, starting May 1, 2023, if you rent out your property for short-term stays, you must include the TOT certificate number in all advertisements.
San Diego charges the TOT as a percentage of the rent for the rental property. The current TOT rate is 10.5% for all lodging businesses.
In addition to the TOT, there is a Tourism Marketing District (TMD) fee for businesses with 70 or more rooms. The TMD fee is currently 2% and helps promote events and tourism in the city.
TOT and TMD payments must be made every month, with payments due by the last day of the next month. For example, TOT and TMD collected in April must be paid by May 31. Late payments are charged extra fees, which increase the longer you delay.
You can pay these fees online, by mail, or in person at the City Treasurer's Office. The City Treasurer’s website has a Penalty Table to help calculate late fees.
Some situations are exempt from TOT and TMD fees, such as:
If a transient qualifies for an exemption, lodging staff must complete a TOT Exemption Application and keep it in their records.
San Diego also charges a Rental Unit Business Tax for property owners who rent out residential property in the city. Additionally, a Short-Term Residential Occupancy (STRO) license is required for any short-term rental of a dwelling unit for less than a month within the city.
The City Treasurer's Office offers several resources to help lodging operators understand and follow TOT and TMD rules. These include a city map to check if a property is within city limits, a list of active TOT vacation certificates, and webpages for the Rental Unit Business Tax and STRO requirements.
If you have questions or need help, you can contact the TOT/TMD Administration desk at 619-615-1530 or sdtot@sandiego.gov.
The Transient Occupancy Tax and Tourism Marketing District fee are important for supporting San Diego's tourism industry. By understanding the rules, getting the necessary certificates, and paying the required taxes on time, lodging operators help the city grow and stay compliant with local laws. With the resources provided by the City Treasurer's Office, following these rules becomes easy, allowing operators to focus on offering great services to their guests.
