Transient Occupancy Tax
Transient Occupancy Tax (Hotel, Motel, Campground or Bed Tax) is authorized under State Revenue and Taxation Code Section 7280, as an additional source of non-property tax revenue to local government. This tax is levied in Contra Costa County at a rate of 10% for accommodations at facilities in the unincorporated areas of the county. TOT funds are discretionary, in that the Board of Supervisors may direct use of these funds for any legitimate county expense. The tax code does not require any specific use of the Transient Occupancy Tax Funds.
Although local governments were given the power to tax for transient occupancy in 1963, Contra Costa County did not adopt an ordinance until 1990 (effective date was October 30, 1990). Historically all Transient Occupancy Taxes within the county were deposited into the General Fund/General Purpose Revenue. On April 9, 1991 by a 3-1-1 vote, the board approved procedures for using TOT revenues from the Embassy Suites Hotel to establish a Child Care Affordability Fund. The action designated 50% of the TOT revenues from the Embassy Suites Hotel for the allocation to the trust fund, not to exceed $250,000 annually). As part of the annual budget, the board discontinued the allocation of TOT to the Child Care Affordability Fund at the end of fiscal year 2006/2007.
On February 4, 2003, the Board of Supervisors created the CCFuture Fund; adopted, in concept, the earmarking of 100% of the annual TOT from the Renaissance Suites Hotel to fund prevention programs serving children and families in Contra Costa County; and directed that the focus of prevention efforts initially be in the Monument Corridor area of the City of Concord. Beginning in 2003/04 fiscal year and continuing today, TOT revenues from the Renaissance Suites Hotel are deposited directly into the general fund account for the CCFuture Fund.
Hotels That Pay
Currently the county has four hotels in the unincorporated areas of the county for which it receives TOTs. The current hotels are the:
- Embassy Suite (1345 Treat Boulevard, Walnut Creek)
- Crowne Plaza (45 John Glenn Drive, Concord)
- Burlington Hotel (2 Canyon Lake Drive, Port Costa)
- The Renaissance Club Sport Hotel (2805 Jones Road, Walnut Creek).