Transient Occupancy Tax (TOT)
The transient occupancy tax (or TOT), also commonly known as a hotel tax, is 13% in the City of Sonoma. The tax is imposed on occupants of hotels, inns, and other short-term lodging facilities for stays of 30 days or less. The tax is applied to a customer’s lodging bill. Transient occupancy taxes are remitted for all approved lodging operators within the City of Sonoma. The TOT is a general tax that is deposited into the City’s General Fund.
TOT generated from Sonoma’s lodging community currently represents more than one-fifth of the City’s General Fund revenue. The General Fund pays for essential City services that benefit both residents and visitors. These include police protection, fire and paramedic services, emergency preparedness, maintenance of streets and traffic operations, recreation services, maintenance of parks and open space, maintenance of City buildings and facilities, improvements and maintenance of overall City infrastructure and property, and general municipal services to the public.
Tourism Improvement District (TID) Assessment
In addition to TOT, a 2% Tourism Improvement District (TID) assessment is added to all overnight stays in the City limits (hotels, motels, B&Bs, guest houses and vacation rentals). The City has grandfathered some current vacation rentals, but other than those previously approved, vacation rentals are not allowed within the city of Sonoma.
Coming Soon: Online TOT/TID Payment Portal
The City of Sonoma is excited to announce that starting January 1, 2025, guest rental property operators will have access to a new online portal for filing and paying Transient Occupancy Tax (TOT) and Tourism Improvement District (TID) fees.
This convenient system, hosted by HdL, will streamline the payment process and allow remittances to be made online via electronic check or credit card (credit card payments will include a small convenience fee). For those who prefer to pay by check, a new mailing address will also be provided.
Stay tuned! In the coming weeks, property owners will receive a letter with detailed instructions on how to access the portal and more information about the transition.
TOT and TID Montly Form for Property Managers
Property managers are responsible for collecting, reporting, and paying TOT and TID each calendar month to the city of Sonoma. Click on the icon to download.
Background
In November 2018 mid-term election, voters approved Measure S, the Transient Occupancy Tax increase. Measure S increased the TOT rate from the existing 10% to 12% effective January 1, 2019, and authorized the City Council to further increase the rate to 13% by January 1, 2024.
On June 10, 2019, the City Council discussed increasing the remaining 1% of the TOT ordinance to address the City’s affordable housing situation. After discussion, the City Council approved a resolution authorizing the additional 1% increase in the TOT, effective September 1, 2019, bringing the total TOT rate to 13%.
Lodging operators in the City of Sonoma collect both the TOT which is general city tax revenue and an additional 2% assessment that is remitted to the Sonoma Tourism Improvement District (STID) as a funding source for a sustained marketing program to increase occupancy and room revenues in the City of Sonoma.
Beginning September 1, 2019, the TOT collection increased to 13% while the STID rate remained at 2%. The current combined TOT and STID collection rate is 15%.