Transient Occupancy Tax
The Transient Occupancy Tax (TOT) is a tax imposed on transient guest for the privilege of occupancy in any hotel, inn, motel, homestay, vacation rental or other commercial lodging for sleeping purposes for a period of thirty (30) consecutive calendar days or less. These taxes are collected by the lodging operator and then forwarded to the City on a monthly basis. If certain conditions are met and claimed on Transient Occupancy Tax Exemption Claim Form, the Municipal Code provides for exemptions from paying TOT. Please refer to Chapter 3.24.040 of the Municipal Code for further detail.
The TOT rate is 10%. The TOT is unrestricted revenue and for the purpose of general governmental purposes, including community improvements, as determined by the City Council from time to time. These improvements greatly contribute to our City's desirability and encourage future tourism in our community. An additional 2% assessment is charged to the lodging business operators and restricted to the Arroyo Grande Tourism Business Improvement District (AGTBID) for the purpose of marketing and promotional efforts for the local lodging industry.
Effective July 1, 2015, an additional 1.5% assessment is charged to the lodging operators and restricted to the San Luis Obispo County Tourism Marketing District (SLOTMD) for the purpose of marketing and promotional efforts for the County lodging industry. For further information on this assessment, please see the County of San Luis Obispo Board of Supervisors Resolution 2012-153.
Duties of the Hotel/Motel and Short-Term Rental Operator
As the operator of a lodging establishment and pursuant to the Municipal Code, you are responsible to:
- Apply for a business license with the City's Administrative Services Department prior to the start of business.
- Collect TOT, AGTBID, and SLOTMD assessments from each guest at the time the rent is paid. A receipt, showing payment of the taxes and assessments must be provided to each paying guest.
- This form (PDF) is due to the City on or before the last day of the month following the ending date of the reporting period. Taxes and assessments not paid in full by the due date are subject to penalties and interest. This form and payment can be submitted online by clicking HERE. The completed form along with payment remittance can also be submitted directly to the Administrative Services Department at 300 E Branch Street, Arroyo Grande, CA 93420
- For further information and definitions, see Municipal Code.