Tourism Marketing District (TMD) Frequently Asked Questions
By Facility Operators
What is the TMD assessment used for?
Revenue generated by the TMD will be used to promote tourism in San Diego.
Which facilities are required to remit the TMD assessment?
The TMD assessment is applicable to lodging businesses with seventy (70) or more sleeping rooms.
How do I calculate the amount due for the TMD assessment?
The TMD assessment is 2% of assessable rent (Tourism Marketing District Resolution, Number RR-303226 (PDF: 689K)).
How long will the TMD assessment be levied?
The TMD assessment has been established for five (5) years, commencing on January 1, 2008 and terminating December 31, 2012.
When will my TMD assessment payment be due to the City of San Diego?
A return must be remitted to the City on a monthly basis. It must be postmarked by the last day of the month, following the month you are reporting on (i.e. May 31 for the month of April).
Are the exemptions for TMD the same as TOT?
Yes, any qualified TOT exemption would also qualify for a TMD exemption.
Is there a different return to report the TMD assessment?
No. A return has been created, allowing you to report TOT and TMD on the same form.
What if my TMD payment is late?
A penalty is assessed. The penalty is 1% of the TMD assessment amount due for the 1st delinquent day, plus 1⁄3 of 1% for each additional day, not to exceed 25%. This is the same penalty calculation for late TOT payments (PDF: 527K).
Should I do anything different if I have less than seventy (70) sleeping rooms?
No. Continue to collect and remit TOT only.
What if I expand to seventy (70) or more sleeping rooms during the TMD assessment period?
You will be required to remit the TMD assessment if your lodging business expands to seventy (70) or more sleeping rooms.
By Guests
What is the purpose of the TMD assessment?
The purpose of the TMD assessment is to promote tourism in San Diego.
As a guest, am I required to pay the TMD assessment?
The TMD assessment is levied solely on the business and the Facility Operator is responsible for payment. However, the Facility Operator may elect to pass the TMD assessment on to the guest.
Are the qualifications for exemption from the TMD assessment the same as TOT?
Yes. Please refer to the TOT exemption qualifications to determine if your stay is exempt from TOT and TMD.
Disclaimer
These FAQs are presented for general guidance only. They do not provide specific advice about a particular set of facts, and may not be relied upon as a defense to a complaint alleging any violation. Please refer to Article 5: Transient Occupancy Tax code (PDF) and/or Article 1, Division 25: San Diego Tourism Marketing District Procedural Ordinance (PDF) of the San Diego Municipal Code for the applicable law.
