Transient Occupancy Tax or “TOT” is due on all short-term stays in most cities, whether the stay is at a hotel or someone’s home that is rented through AirBnB or the like. Many people who rent out their own home are surprised that they should be collecting the TOT. In many cities, the TOT also applies to timeshares. Each city passes its own TOT, so the language of the local ordinance is critical to determining if the TOT applies and how much should be collected.
Often the TOT can be avoided or significantly reduced. Our Firm has assisted clients with TOT issues for many years. For example, we have challenged TOT assessments for major timeshare facilities in many cities and we have counselled and guided large timeshare operators with regard to potential TOT liability.