North Lake Tahoe TOT revenue up 18 percent this year
TAHOE CITY, Calif. — Placer County announced in a press release Aug. 30 that revenue from its North Tahoe Transient Occupancy Tax was up $3 million from the previous year — an 18 percent increase.
The county attributed the increase to last year’s snowfall, which was higher than it had been in prior years.
The county also reportedly collected $900,000 in past due lodging taxes between July 2015 and June 2016, which also contributed to the increase, officials said.
“A good year for our recreation economy benefits the entire North Lake Tahoe community,” said Placer County Deputy Executive Director Jennifer Merchant in a statement.
For the 2014-15 fiscal year, North Tahoe’s transient occupancy tax revenue climbed to over $12 million.
Transient Occupancy Tax is a percentage added onto the cost of short-term lodging, like hotel rooms and Airbnb rentals. Revenue from the TOT, unlike other taxes, is retained entirely by the county wherein it is collected.
“With a boost in TOT,” Merchant said, “We’re able to invest in more things that improve quality of life for our residents and help make sure our visitors can’t wait to return.”
The TOT in Placer County is different depending on what part of the county the lodging is in. Rentals on the western slope of the county have an 8 percent TOT rate, while those on the eastern slope — in what is considered the “North Lake Tahoe Area” — have a rate of 10 percent.