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1. What is "Occupancy Tax"?

Occupancy tax is a tax (in conjunction with the fee) on the rental of an STR. The City requires the collection of occupancy tax for STRs in Milpitas. The guest generally pays the occupancy tax, but the host (or property owner) is responsible for paying the tax to the City of Milpitas. 

2. What is the TOT rate?

The current TOT rate is 14%.

3. Do I need to submit a monthly report even though Airbnb collects and remits TOT on my behalf?

Yes, all hosts must still submit a monthly report, even those who list on Airbnb exclusively. Airbnb only remits TOT on behalf of Milpitas hosts but they do not submit the required monthly report information.

4. What does 'taxable receipts' include?

Taxable receipts includes, but is not limited to, nightly rents, weekly rents, standard cleaning fees, pet fees, parking fees, internet charges, late check-out fees, extra person fees, and resort fees. Taxable receipts excludes refundable deposits and any additional items included in a special package rate, such as ski passes, or other recreational activity or additional service subject to CA sales tax.

5. What information do I need to provide for the monthly report?

The monthly report requires you to report the following:

• The number of nights a short-term rental was rented for during the reporting month.
• The total amount of taxable receipts for short-term rentals during the reporting month. See the previous question for a definition of 'taxable receipts'.

6. When and how do I remit TOT and my monthly reports?

Submit TOT remittance and reports here. You will need to have already registered and obtained a Short-Term Rental permit to access the system. You will also need to have your Short-Term Rental permit number ready.

The deadline for monthly reports and TOT remittance: shall be on or before the last day of the month following the close of each calendar month. For example, certain rental activities for the month of April will be due on or before May 31.

7. Can I remit the TOT payment in person, or can I mail it and pay via check?

No, TOT remittance can only be made online. You can pay TOT remittance online here.

8. I did not conduct any rentals during the reporting month. Do I still need to complete a monthly report?

Yes, all host must submit a monthly report every month regardless of whether or not they had any short-term rental activity.

9. What happens if I do not remit TOT or submit a monthly report by the specified deadline?

Penalties and interest begin to accrue beginning the 31st day after the month's end. For example, penalties will begin to accrue beginning December 1 if you failed to remit TOT for October by November 30.

Operators shall pay a penalty of 25% of the amount of the tax in addition to the amount of the tax. In the event of continued delinquency (defined as failure to remit any delinquent remittance on or before thirty (30) days following the date on which the remittance first became delinquent), an additional 25% penalty of the amount of the tax shall be assessed. Assessment of this penalty shall not prevent the City from pursuing criminal or civil actions against the operator to the extent allowed by law.

In addition to the penalties imposed, any operator who fails to remit any tax imposed by this Chapter shall pay interest at the rate of 1% per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. For more information, please refer to Chapter 13 - Transient Occupancy Tax.

10. Who can claim a tax exemption?

Non- Transient: any person occupying space in a hotel shall be deemed to be a transient until the period of 30 consecutive days has expired unless there is a written and legally binding agreement between the operator and the occupant providing for a longer period of occupancy.

Domestic Government: any federal or State of California officer or employee on official business

Foreign Government: Any officer or employee of a foreign government who is exempt by reason or express provision of federal law.

If you are claiming any tax exemptions on your stay, please complete the Transient Occupancy Tax Exemption Form (PDF), and attach it to your remittance report