Site Tools
Welcome to the State of California

13000-13003 General Information: Provision and Requirements

13000. AUTHORITY TO COLLECT
The authority to levy TOT is granted to the legislative bodies of both cities and counties by Revenue and Taxation Code section 7280. This manual section refers to only county TOT levy and collection. The authority to collect TOT is generally granted to the county tax collector by the board of supervisors (board) by means of an ordinance. An ordinance passed by a board is specific to that county. Although similar, each county ordinance may differ from others throughout the state.

13001. COLLECTION JURISDICTION
Counties may levy TOT only in the unincorporated areas of the county.

13002. REVENUE AND TAXATION CODE VS. ORDINANCE
While the Revenue and Taxation Code broadly defines the basic levy and exemption of TOT, it leaves many of the specifics of the levy, exemptions, administration, reporting, remitting, penalties, audits, appeals, refunds and collection to be defined by ordinance.

13003. TAX CLEARANCE CERTIFICATE
A purchaser, transferee, or other person attempting to obtain ownership of property subject to transient occupancy tax may request the county to issue a tax clearance certificate (Rev. & Tax. Code §7283.5).

Within 90 days of receiving the request, the county must either issue a tax clearance certificate or audit the records of the current owner for any occupancy taxes that may be due and owing.

An audit must be conducted within 90 days after the records are made available. A tax clearance certificate must be issued within 30 days of completing the audit.

The tax clearance certificate must state the following:

a. The amount of tax due and owing for the subject property, if any;

b. The time period for which it is valid. 

The purchaser, transferee, or other person or entity obtaining ownership may rely upon the tax clearance certificate as conclusive evidence of the tax liability as of the date specified on the certificate.

Any purchaser, transferee, or other person or entity who obtains ownership without obtaining a tax clearance certificate, or obtains a tax clearance certificate that shows a tax liability and fails to withhold sufficient funds in the escrow account, shall be held liable for the amount of the tax due (Rev. & Tax. Code §7283.5).

See form SCO 13-1 for a sample Tax Clearance Certificate.

NOTE: Pursuant to Stat. 7283.5, Ch. 936, effective January 1, 2005, this section does not apply to charter counties.