Transient Occupancy Tax (TOT), also known as “hotel tax” or “bed tax”, is a City tax of 12% on the rate paid by occupants of hotels, inns, motels, vacation home rentals or other short-term lodging facilities for stays of 30 days or less. This tax is applied to a visitor’s lodging bill collected by lodging operators and remitted to the City of Novato. TOT is NOT a property tax or tax on Novato residents who are not hotel, lodging, or short term rental guests.

The City's TOT helps fund City projects and services that benefit the City as a whole. The City’s TOT has not changed since 1997 and the ordinance imposing that tax needs to be updated to provide greater financial security to the City, particularly in light of the recent COVID-19 related economic downturn. It is critical to secure ongoing locally-controlled funding to maintain services and ensure the City is prepared for any future emergencies. Novato must be able to be self-reliant during difficult times and maintain services such as disaster response, 9-1-1 emergency response, neighborhood police patrols, potholes and streets, ability to keep public areas safe, clean and healthy, support of the business community, and other services offered to its citizens. An increase in the TOT (or hotel) rate will help support these services.

The City’s TOT rate was increased from 10% to 12% by Measure Q in 2020.

Tourism Committee Report

On September 10, 2024, the Novato Chamber of Commerce presented the Fiscal Year 2023/24 Tourism Committee Report to the Novato City Council, which details activities and fund allocations to promote tourism in Novato. 

Hotels, Lodging Establishments, Short Term Rentals - Remit Transient Occupancy Tax (TOT) & Tourism Business Improvement District (TBID)

The City partners with HdL Companies to provide online services for collection of TOT. Local lodging establishments can submit their TOT and Tourism Business Improvement District (TBID) returns online, by phone or by mail to simplify their quarterly reporting.

If you have any TOT or TBID questions, please contact HdL at novato@hdlgov.com or 628.214.1373. Phone support is available Monday through Friday, 8am-5pm (PST).