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Anaheim TOT Issue

TOT Update

After more than a year plus of work with stakeholders, the City of Anaheim has passed an amendment to their Transient Occupancy Tax (TOT) Ordinance. The Anaheim Orange County Hotel and Lodging Association with their partners, Visit Anaheim, the Anaheim Chamber of Commerce worked hand and hand with city staff, city attorneys, and the city manager to come to this collaborative agreement. We are pleased to say that this amendment addresses an important issue for both the city and the hoteliers.

The revised TOT Ordinance clarifies the definition on Direct Payment vs Indirect Payment. It aims to ensure that Anaheim collects its appropriate TOT for hotel bookings made via online travels companies (OTCs).  Please click here for the TOT Ordinance and here for the staff report.

One of the major contributors to Anaheim’s General Fund is the revenue from TOT. Along with TOT, the Anaheim Resort District comprises nearly half of the funds the City uses to provide services like public safety, infrastructure, parks, community services, and more, that the Anaheim residents and businesses rely on every day.

We are pleased with the amendment and are excited to see how Anaheim continues to grow. We want to ensure you have the tools to navigate this new process. We have a letter drafted to use as a notice to the  OTCs regarding the obligation to notify the City if a claim of impairment of contract will be made. Please click here for the letter. 

Below you will find also find helpful dates regarding the new TOT Ordinance that are in the documents but repeated here for your convenience.

The new mandate concerning Direct Payment vs Indirect Payment goes into effect July 15, 2020.

Any impairment of contract claim must have a statement filed with the City’s License Collector before July 15, 2020.

In any event, all hotels must be in full compliance with the new ordinance no later than July 15, 2021.