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TOT Tax Return Form .pdf   file_download

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Government Exemption Form .pdf   file_download

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Long-Term Occupancy Form .pdf   file_download

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Short-Term Rental Required Documentation .pdf   file_download

A short-term residential rental (STR) is the rental of all, or a portion/bedroom, of a residential home for periods of less than 30 consecutive nights. Short-term rentals are typically advertised on websites such as Airbnb, VRBO, or HomeAway.

• The home must be a structure that is approved and permitted for residential use.
• The Permanent Resident may be an owner or a tenant with a long-term lease, but must be a natural person (not a corporation, business, or other legal entity)
• The home must be occupied by the permanent resident at least 60 days per year.

Permanent residency by an owner or tenant offering their home as an STR must be documented by at least three (3) of the following that include both the permanent residents’ name and address of the home being rented:

• Motor vehicle registration
• Driver’s license
• Voter registration
• Utility bill
• Tax document showing the unit utilizes the homeowner’s tax exemption.

• The home must provide off-street parking (driveway and/or garage)

Registered STRs may rent a room(s) or the entire structure, as long as the owner/tenant is a permanent resident.

Owners or long-term tenants that are permanent residents of the home may temporarily rent their residence out while they are traveling, on vacation, or temporarily staying at a secondary residence or vacation home, as long as they comply with the requirements of the STR Registration Program, including identifying a 24-hour emergency contact who will be living within 30 miles of the home whenever it’s rented.

All STRs are required to submit the applicable Transient Occupancy Tax (TOT) payment on a quarterly basis. The City of Novato’s TOT is 12% of taxable rents, and the County of Marin’s Business Improvement District (BID) fee is 2% of taxable rents, for a total of 14%.

The City of Novato will collect both the City and the County BID and submit the 2% directly to the County on your behalf.

Taxes should be submitted online through the City’s STR online filing platform.

Taxes are separate from any STR or business license application/review fees. Failure to submit taxes may result in late fees/penalties, up to and including revocation of a STR Registration.

• STR Property Registration: $170
• STR Application Review: $315
• Novato Business License: $174
• Property Inspection**: $100
• Transient Occupancy Tax: 12% of the gross receipts taxable rent.

** - The permanent resident may self-conduct the property inspection and avoid the $100 fee; if City staff is required to satisfactorily complete the inspection, the $100 fee would apply.

The annual STR and business license fees are separate from any applicable Transient Occupancy Tax.

Transient Occupancy Tax (TOT) is a tax imposed on guests who rent a property, or a portion of a property, for the purpose of lodging on a short-term basis (30 consecutive days, or less). TOT is collected in addition to the rent that is paid. 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.

TOT is collected by the operator at the sametime rent is collected from the guest. Theoperator is the owner, property manager, host, or lessee who is providing lodging on a short-term basis. The operator is the person responsible for remitting the collected tax back to the City.

Any guest who rents for30 consecutive days or more is exempt from paying TOT. A record of all your exemptions or exclusions must be kept, along with forms and any backup documentation.

Officers of the federal, state, or foreign government on official business may also be exempt. Proof of exemption must be provided to the hotel by the claimant, and the City’s Exemption Form must be completed.

This information should be included with your exemption claims on your regular tax returns.

Operators collect the tax from renters and file TOT returns with the City on a quarterly basis. TOT is due on or before the first day of the month following the close of each calendar quarter.(i.e., April 1st , July 1st, October 1st, and January 1st). TOT Returns are required to be filed, regardless of whether any rent was collected during the period.

Yes. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of ten percent (10%) added on the delinquent date of the return. An additional ten percent (10%) is added if the return and payment are not filed within 30 days of the delinquent date of the return. Interest at the rate of ½ of 1% per month accrues from the delinquent date of the return.

The STR Program is governed by Novato Municipal Code § 8.12, which was approved by the Novato City Council on February 9, 2021. A complete list of the STR Program’s Eligibility Standards, Operating Parameters, and Procedures can be found in Novato City Council Resolution No. 2021-015.