A. The Transient Occupancy Tax is a tax owed to the City by anyone who occupies a room for less than 31 days in a hotel (O.M.C. 5.16.020 section A) that is located within the City of Orange. This tax must be paid to the hotel on behalf of the City of Orange (O.M.C. 5.16.030 and 5.16.020).
Q. How does the City of Orange define the term "transient"?
A. A transient is any person that has occupancy for a period of less than thirty-one (31) consecutive days. Occupants completing thirty-one (31) or more consecutive days may no longer pay the transient occupancy tax (O.M.C. 5.16.020). The hotel operator takes this allowable deduction on line three (3) of the tax return.
Q. Are certain guests exempt from paying the Transient Occupancy Tax?
A. Yes. In general, Foreign Dignitaries, all on-duty employees for the American Red Cross, Federal Credit Union employees on official business, and Federal Government on official business are exempt. The guest must complete the City of Orange Certificate of Tax Exemption form, which must be kept by the hotel operator (O.M.C. 5.16.040). Note: State Government, County, and local government employees are not exempt. Contractors hired by government agencies are not exempt. Non-profit groups are not exempt.
Q. How much is the Transient Occupancy Tax for the City of Orange?
A. The Transient Occupancy Tax is ten percent (10%) of the rent charged to the transient by the hotel operator (O.M.C. 5.16.030).
Q. Does the hotel operator need to use the City of Orange tax form?
A. Yes. The Tax Administrator provides the monthly tax form to be used. You can access this form now, request monthly e-mail delivery, or receive this tax form via the mail (O.M.C. 5.16.070).
Q. When is the Transient Occupancy Tax due?
A. Transient Occupancy Taxes are due the last day of the month following the reporting month. To avoid penalties and interest, refer to our schedule of important dates (O.M.C. 5.16.070 and 5.16.080). All taxes are also due immediately after closing or selling of the business for any reason.
Q. Are postmark dates valid in determining the delinquency of Transient Occupancy Taxes?
A. No. Payments must be received by the Tax Administrator on or before the stated due date (O.M.C. 5.16.070).
Q. Does the City of Orange waive penalties and interest under certain circumstances?
A. No. The City of Orange does not waive any penalties or interest. However, once the Tax Administrator has rendered an opinion on the matter there is an appeal process available (O.M.C. 5.16.100).
Q. May I use a credit card to pay my Transient Occupancy Tax via e-mail or fax?
A. Yes, but both the credit card and tax forms must be accurately completed and have signatures on them. Please note: They must be faxed into our office before the City Hall's last working day of the month. If the forms are incorrect and have not been received before the deadline, they will be considered delinquent. Payments must be less than $5,000.00 to be accepted. Click on the credit card button at the bottom of the tax form. Once forms are completed, fax (714-288-2170) or e-mail them to Central TOT Mailbox.
Q. Is a hotel required to have a business license?
A. Yes, In addition to a valid Certificate of Registration (O.M.C. 5.16.060), the operator must maintain a current Business License (O.M.C. 5.02.040).
Q. Where can I find support if I have concerns or require additional assistance?