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February 15, 2007: Letter from Palm Springs Director of Finance Re: Transient Occupancy Tax
The City of Palm Springs has instituted a new auditing program for residential dwelling units (i.e., single-family homes and condominiums) that are rented out on a short-term basis (i.e., vacations and weekends).
Dear Web Manager:
The City of Palm Springs has instituted a new auditing program for residential dwelling units (i.e., single-family homes and condominiums) that are rented out on a short-term basis (i.e., vacations and weekends). The purpose of this correspondence is to advise you that your website has been identified as a source of residential properties that are available for rent on a short-term basis.
The City requires any person who occupies a residential dwelling unit for a period of twenty-eight consecutive calendar days or less to register with the City and pay a Transient Occupancy Tax (TOT). Failure to collect and pay TOT not only deprives the City of revenue to cover the costs of public services like police and fire, but it also constitutes a crime which is punishable by a fine of not more than one thousand dollars, or by six months imprisonment, or both.
To help educate property owners of the City's requirements regarding short-term rentals of residential property, we ask that you provide the attached information to anyone who lists their property on your website. Hopefully, by having this information originate from your company when the property is listed, it will alleviate the City from having to directly contact your customers to inform them of the City's requirements.
Thank you for your cooperation and assistance in this matter. If you have any questions, please contact Cindy Gosselin in the City's Finance Department at 322-8328.
Sincerely,
Craig A. Graves
Director of Finance
Are there developments in your vacation rental market that others should know about? Please let us know.
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