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Transient Occupancy Tax

Transient Occupancy Tax

(Commonly Referred to as "Bed Tax")

How are hotel taxes collected?

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of ten percent (10%) of the rent charged. These taxes are collected by the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due at the time the transient ceases to occupy space in the hotel.

What are the operator's duties?

The operator shall collect the tax imposed on the transient at the same time as the rent is collected. If the operator collects the rent but fails to collect the tax imposed for any reason, the city shall require the operator to pay such tax. The amount of tax shall be separately stated from the amount of the rent charged and each transient shall receive a receipt for payment from the operator. A duplicate copy of this receipt shall be kept by the operator.

How do I remit taxes?

All operators shall remit the full amount of taxes collected on the Transient Occupancy Tax Return form. Checks must be made payable to the City of Fullerton and sent with the remittance form to: 

City of Fullerton
Revenue Division
303 W. Commonwealth Ave.
Fullerton, California 92832-1775

How do I obtain tax forms?

A tax return package is mailed annually at the beginning of the fiscal year, which begins July 1. The package includes:

Transient Occupancy Tax Return Forms
Schedule of Due Dates
Fullerton Municipal Code Section 4.92
Copy of Diplomatic Exemptions Provided by the Department of State
New operators of hotels/motels may obtain a tax package in the Revenue Division of City Hall.  

What if I cease operation of the hotel?

Each operator shall notify the City's Revenue division within ten days upon the cessation of business for any reason and shall make his/her books and records available for audit. Each operator, upon cessation of business for any reason, shall, within thirty days following the cessation of business, submit a return on forms provided of the total taxable rents charged, the amount of the tax collected for the reporting period, remittances made, if any, and the balance of the tax due. At the time the return is filed, the full amount of the balance of the tax due, if any, shall be remitted.

If you are unable to access Municipal Code Section 4.92, please contact the City of Fullerton Revenue Division by e-mail businessregistration@ci.fullerton.ca.us or phone (714) 738-3313.