Transient Occupancy Tax is a tax levied for accommodations at lodging facilities within the Town of Herndon. The current tax rate is 6% of the total amount paid for lodging.
Business owners, partners, corporate officers, or other individuals designated to collect Town of Herndon Transient Occupancy Taxes must complete and submit the following form:
Transient Occupancy Tax Form
Monthly filling and payment are due to the Town of Herndon by the 20th of the month following the month being reported (OR) by the 20th of each month for the Transient Occupancy taxes collected during the preceding month. For example, tax payment for March is due on April 20th.
*If the 20th falls on a weekend day, the due date is moved to the next business day.
Please be aware that you are holding this tax in trust for the town. Managers or responsible parties of lodging facilities can be held personally liable for payment of delinquent taxes
📜 Legal References
How to calculate TOT:
Total Room Receipts × Tax Rate (6%) = TOTAL TOT DUE
Example : $8,000 x .06 = 480
On time discount of 3% is granted when the filing and payment are received before or on the on the due date
Total Room Receipts ×Tax Rate (6%) = TAX - ON TIME DISCOUNT (3%) = TOTAL TOT DUE
Example: $8,000 x .06 = 480 - (480 x.03) 14.40 = 465.60
Late Payments
A remittance is considered delinquent if the Transient Occupancy Tax Form and payment (both) are not received by the due date*. Remittances received after the 20th of the month are not allowed the 3% On-Time Discount and are subject to a penalty of 10% of the tax due. Payments received after the 30th of the current month, are assessed interest of 10% per annum.
