Transient Occupancy Tax and Land Lease Audit Services

The Vendor is required to provide Transient Occupancy Tax (“TOT”) and Land Lease Agreement auditing services.
- Select a reliable, efficient, professional consultant to audit previous TOT and Land Lease payments and agreements ensuring proper reporting of revenues to the City while also providing recommendations for improving future compliance requirements.
- Best industry practices and/or best management practices may require additional services that are not explicitly enumerated.
- Responsible for conducting TOT audits on a to be determined number of Hotels, Motels, and Short-Term Rental operators.
- The audits will be for the years ending on June 30, 2022, 2023, 2024 and 2025.
- Trace reported transient rent receipts from the TOT returns to the accounting records (receipts, activity logs, bank statements, etc.) of the operator ensuring compliance with City ordinances and if the operator has properly documented and applied exemptions to the tax. 
- When misapplication is identified, calculate the amount of the deficiency and report back to the City.
- Select a sample of rental transactions from the audit period and for each transaction selected, verify tax computations and review supporting documentation to compare the amount of TOT revenues collected by the City to the books and records of the hotel/motel and STRs.
- Perform additional procedures that the City considers necessary to verify the reasonableness of reported revenues of the operator.
- Recommend best practices, and any updates to the City’s Municipal Code to help ensure improved collections.
- Review the current land lease agreements to ensure the City receives adequate and necessary information regarding lease payments. This will verify the payment amount and facilitate understanding of the lessee's calculation method.
- Verify rent payments and profit-sharing provisions.
- Identify risks, defaults or potential breaches of contract.
- Verify the mathematical accuracy filed by the lessee with the City for the outlined fiscal years above.
- Review and analyze existing lease provisions, including making recommendations for new land lease agreements based on current industry land lease rent rates and industry practices.
- Advice the City on the appropriate documentation and reporting required with lease payments, based on current industry practices.
- Perform additional procedures that the City considers necessary.

- Contract Period/Term: 1 year
- Questions/Inquires Deadline: September 18, 2025