TRANSIENT OCCUPANCY TAX
The Transient Occupancy Tax within the City of Vallejo is regulated by Vallejo Municipal Code Chapter 3.19. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of eleven percent (11%) of the rent charged by each hotel operator. The transient shall pay the tax to the operator of the hotel at the time the rent is paid.
TAXES HELD IN TRUST
It is important to remember that all Transient Occupancy Taxes owed by the transient and collected by each hotel operator are held in trust by each hotel operator for the City of Vallejo until such payments are remitted. At no time shall the taxes be used by the hotel operator for any other financial obligation or purposes.
MONTHLY REMITTANCE
The monthly reports and the tax remittance payment must be received by the City of Vallejo on or before the 20th day of the month following the close of the prior month. It is each hotel operator's responsibility to submit each monthly tax remittance payment, along with the proper forms, by the applicable due dates. If the payment due date falls on a weekend or City holiday, the next business day shall become the due date.
Monthly tax remittances shall include:
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Tax Return Form
Every hotel charging rent for the occupancy of space in a hotel shall complete and sign a monthly Transient Occupancy Tax Return Form indicating the total amount of room rent charges, any exemptions, penalties, interest, adjustments, and the tax required to be collected.
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Exemption Claim Form (if applicable)
If exemptions are claimed on Transient Occupancy Tax Return Form, line 3, an Exemption Claim Summary Schedule and Exemption Claim Certificate Form are required to substantiate any exempt hotel rent charges and must be submitted along with the Tax Return Form.
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Remittance Payment
Please make copies for your records and return all original forms with the tax remittance payment on or before each due date.
Make checks payable to:
City of Vallejo
Send all payments to:
City of Vallejo
Commercial Services Division
555 Santa Clara Street, 1st Floor
Vallejo, CA 94590
PENALTIES AND INTEREST
Delinquent Penalties
Any hotel operator, who fails to remit any portion of the Transient Occupancy Tax to the City of Vallejo within the required timeframe, shall pay a penalty of ten percent (10%) of the amount of the tax in addition to the tax owed assessed on the first day of delinquency. Any operator, who fails to remit any delinquent remittance on or before the 15th day of the month following the first penalty, shall pay a second delinquent penalty of ten percent (10%) of the amount of the tax in addition to the tax owed and the first ten percent (10%) penalty.
Interest
In addition to the penalties imposed, any operator who fails to remit any tax imposed, shall pay interest at the rate of one percent (1%) per month on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
Fraud
If the Tax Administrator of the City of Vallejo determines that the nonpayment of any remittance of the Transient Occupancy Tax is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax, shall be added to the tax owed and any applicable penalties and interest.
Registration / Close of Business / Change of Ownership
Each hotel operator shall register with the Tax Administrator of the City of Vallejo and obtain a Transient Occupancy Registration Permit which is to be posted in a conspicuous place on the premises at all times. Returns and payments are due immediately upon close of business and/or change of ownership for any reason, i.e., foreclosure, assignment of receiver, business sold, etc. A Transient Occupancy Registration Certificate is not transferable. Please report all address changes immediately to the Commercial Services Division.
Records Retention
Each hotel operator must maintain for three years complete records as may be necessary to determine the amount of the tax and any of the exemptions as reported on the remittance forms.
For More Information
Please feel free to contact us at any time.
City of Vallejo
Commercial Services Division
555 Santa Clara Street, 1st Floor
Vallejo, CA 94590
Phone (707) 649-4856
Fax (707) 649-5407
Business hours are Monday - Friday, 8:30 am - 5:15 pm.