Introduction
Thousands of business owners in cities throughout the United States are successfully using business improvement districts to improve their businesses. The proven track records of those districts led to implementation of BIDs for tourism promotion in California. Businesses in Ontario, California expressed interest in using this model to form and grow a stable funding source that will help support them. The Property and Business Improvement District Law of 1994 (“1994 Law”) is a powerful tool available to business owners and local governments. This law empowers private business owners to work closely with local government officials and establish a new funding source dedicated to providing services which benefit the businesses. As with most areas, there is a greater need for tourism promotion services in Ontario and Rancho Cucamonga than can be provided with limited government funding. The Greater Ontario Tourism Marketing District (TMD) addressed this need and provides a dependable source of revenue for marketing Greater Ontario lodging businesses. The assessments are Fees, not Taxes.
Hotels
The TMD for Greater Ontario was established in 2014/2015 Fiscal Year to include hotels in the cities of Ontario and Rancho Cucamonga, At this time and until July 2018 an assessment of 2% of gross room rental revenue on lodging business with fifty (50) or more hotel rooms. The renewal and extension of the TMD started July 2018 the assessment remains at 2.0% of gross room rental revenue on lodging business with fifty (50) or more hotel rooms and would not adjust again until July 1, 2023 when the assessment will rise to 3% until the end period in 2028. The TMD funds would be collected by the Greater Ontario Tourism Marketing District (GOTMD) as it happens today. The Bureau will continue to be responsible for using the funds to provide marketing, sales and promotional services which benefit hotels. The funds would not be used for any costs not directly related to putting “heads in beds”.
Short Term Rentals
As of 2022, Short Term Rentals in the cities of Ontario and Rancho Cucamonga were added to the Greater Ontario Tourism Marketing District and will adhere to the following assessments – Starting immediately, 2.0% of gross revenue on a short term rental will be collected. It would not adjust until July 1, 2023 when the assessment will rise to 3% until the end period in 2028.
A Short-Term Rental is when a resident rents out a room, a portion of their home, or authorized guest house for a period of less than 30 days for payment or other compensation.
Short-Term Rental of a room, whole house, or authorized guest house for a period of less than 30-days is permitted in the cities of Ontario and Rancho Cucamonga, subject to meeting the operating requirements of the Municipal Code per individual Cities. These requirements include obtaining a Business License, a Transient Occupancy Tax Certificate and a Short-Term Rental Permit. The application and process for the permit includes an inspection of the property by City staff.
- To learn more about the City of Ontario Short Term Rentals including permits, TOT, and applications click here
- To learn more about the City of Rancho Cucamonga Short Term Rentals including permits, TOT, and applications click here
Assessment Fee Remittance
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If you are the owner or financially responsible of a Short-Term Rental or Hotel within the Greater Ontario Tourism Marketing Direct register and get started here: Granicus.com