Guests not required to pay Tourism Marketing District fees
When district formed under Streets & Highways Code, guests do not pay.
Tourism Marketing District (TMD) fees are typically assessed on guests staying at lodging properties within the district to fund marketing and promotional activities that benefit the local tourism economy. However, there are situations where guests are not required to pay these fees, particularly when the district was formed under specific provisions of the California Streets & Highways Code.
Key points to understand regarding exemptions:
- If the TMD was established under a section of the Streets & Highways Code that allows for opt-out or alternative funding mechanisms, lodging operators may not be required to collect the fee from certain types of guests.
- Some districts may exempt guests from paying if their stay falls under specific conditions, such as long-term stays, government employees, or promotional arrangements approved by the district.
- It is also possible that when a district is newly formed, there may be an initial period where fees are not yet assessed on guests until the administrative process is fully implemented.
Additional considerations for lodging operators and guests:
- Operators should review the district formation documents and the applicable section of the Streets & Highways Code to determine the exact exemptions and collection responsibilities.
- Guests should verify with their lodging property whether the TMD fee applies to their stay to avoid any unexpected charges.
- Some districts provide guidance or notices on exemptions, and this information is often posted on the district’s official website or provided at check-in.
In summary, while most guests pay TMD fees as part of their lodging charges, those staying in a district formed under certain provisions of the Streets & Highways Code may be exempt, depending on the specific terms of formation and local regulations.
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