HOW TO CALCULATE YOUR ASSESSMENT
The tourism assessment fee is based on California gross receipts from the most current available year-end revenue data. The reporting period should match the period used to report revenue for annual tax purposes. The Tourism Assessment Program monitors the year-end dates reported to verify that a company is reporting consistently. The formula for filing your assessment is:
(Total Gross Receipts X Percentage of Tourism X Assessment Rate) See below for help with Percentage of Tourism and Assessment Rate
Click here to file your assessment online now.
TOTAL GROSS RECEIPTS
California Gross Receipts as defined in the Tourism Marketing Act: (l) “California Gross Receipts” means gross receipts minus returns and allowances from sales in California. Examples of California Gross Receipts are the amount shown on line 1c of Schedule F, Form 100 of the California Franchise Tax Board, 1996 revision date, line 3 on Schedule C, Form 1040 of the Internal Revenue Service, 1996 revision date, or for multi-state operations, column (b) on line 3, “total sales” of schedule R-1 of the California Franchise Tax Board, 1996 revision date.
ABOUT THE ASSESSMENT RATES
Effective July 1, 2015, assessment rates are as follows:
- For Accommodations, $1,950 per $1 million of travel and tourism revenue or 0.00195
- For Restaurants & Retail, $975 per $1 million of travel and tourism revenue or 0.000975.
- For Attractions & Recreation, $975 per $1 million of travel and tourism revenue or 0.000975.
- For Transportation & Travel Services, $975 per $1 million of travel and tourism revenue or 0.000975.
- For Passenger Car Rental, 3.5% of monthly revenue.
These assessment rates apply to assessments that are delinquent as of July 1, 2015.
PERCENTAGE OF TOURISM
The percentage of revenue derived from travel and tourism is determined by each business location. Tourism percentage should reflect the amount of revenue that meets the travel and tourism revenue definition.
“Travel and Tourism Revenue” means California Gross Receipts derived from expenditures to and/or within California by people who (1) travel at least fifty (50) miles from home, one way, for purposes other than commuting to work or school; or (2) have an overnight accommodation as part of the travel, regardless of the distance or purpose traveled. “Home” as used in this definition means the place where the person has resided for the most recent 31 consecutive days.
Any revenue earned by an accommodation in conjunction with an overnight stay or by a traveler more than 50 miles from home is assessable. Revenue earned from guests staying 31 continuous nights or longer is not subject to the assessment.
Revenue derived from any individual or group of persons who travel 50 miles or more to a business location is considered travel and tourism revenue for a business within the attractions and recreation, transportation and travel services, or restaurant and retail industry categories. The business location and proximity to major freeways, attractions, outlet/premium shopping malls, lodging, or destination locations and venues should be considered when determining the percentage of revenue earned from travel and tourism. In addition, the business’ credit card data, market research, consumer surveys or analysis can provide contextual information to assist in determining percentage of tourism.
Each business can use any method to determine the percentage of revenue from tourism but may be required by the Office of Tourism to provide the documentation of the findings if the percentages are inconsistent with numbers reported in the given area.