Anaheim's Hotels & Lodging: The Rules That Matter

Every city handles hotels & lodging a little differently. In Anaheim, California, there are 3 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Transient Occupancy Tax

Anaheim charges hotel guests a 15% Transient Occupancy Tax on stays under 30 days, one of California's highest TOT rates, funding the Anaheim Resort, public safety, and general fund operations.

Key details: TOT rate: 15%. Stay threshold: Under 30 days. Remittance: Monthly to Treasurer. Late penalty: 10% plus interest. Annual revenue: Approximately $200 million.

Failure to collect or remit TOT incurs 10% penalty, 0.5% monthly interest, and potential business license revocation; willful evasion is a misdemeanor with criminal penalties.

This is one of the stricter rules in Anaheim's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Hotel Worker Retention

Anaheim follows California's statewide hotel worker retention rules under Labor Code 2810.8, requiring successor hotel operators to retain incumbent workers for a 90-day transition period after ownership changes.

Key details: Authority: CA Labor Code 2810.8. Retention period: 90 days minimum. Hotel size: 50+ guest rooms. Termination standard: Cause required. Local ordinance: None separate.

Wrongfully terminated workers may recover lost wages, reinstatement, and benefits through civil action; the Labor Commissioner may also assess penalties up to $500 per worker per day.

Hotel Living Wage

Measure L (2018) requires Anaheim Resort hospitality employers receiving city subsidies to pay a living wage starting at $15/hour, indexed annually to inflation, now exceeding $20/hour for covered hotel workers.

Key details: Authority: Measure L 2018. Code section: AMC Chapter 1.05. Coverage: Subsidized resort employers. Indexing: Annual CPI adjustment. Enforcement: Private right of action.

Workers may sue for unpaid wages, equal liquidated damages, attorney fees, and reinstatement; willful violations also trigger civil penalties enforced by the City Attorney.

This is not one of those rules that cities tend to ignore. Anaheim actively enforces its hotel living wage requirements.

The Bottom Line

Anaheim is tougher than many cities when it comes to hotels & lodging. Out of the 3 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Anaheim, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

These rules come from Anaheim's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.