Long Beach's Hotels & Lodging: The Rules That Matter

Every city handles hotels & lodging a little differently. In Long Beach, California, there are 2 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.

Hotel Living Wage

Long Beach Living Wage Ordinance requires city service contractors and certain airport and convention center employers to pay an hourly living wage above California minimum wage, with annual indexing.

Key details: Code section: LBMC Chapter 2.73. Coverage: City service contractors. State floor: $16.50 minimum wage indexed. Adjustments: Annual CPI indexing. Health benefit: Required or wage adder.

Back wages, civil penalties, contract suspension, and possible debarment from city contracts. Workers may sue and recover attorney fees under the ordinance.

Transient Occupancy Tax

Long Beach charges a combined 13% transient occupancy tax on hotel and short-term stays: 6% funds the special advertising and promotion fund, plus a separate 7% general purpose tax deposited to the City's general fund, both collected by the operator from the guest.

Key details: Base rate: 6% (special advertising/promotion fund). Additional rate: 7% general purpose tax. Combined rate: 13% of rent. Nontaxable threshold: 31+ consecutive days with written agreement. Late penalty: 25% then 50%, plus 1%/month after 60 days.

Under Section 3.64.120, an operator who fails to remit tax by the last day of the month following collection owes a 25% penalty on top of the tax; if still unpaid more than 30 days after it became delinquent, the penalty rises to 50% of the tax, plus an additional 1% per month on any balance still unpaid after 60 days. Section 3.64.130 makes unremitted or uncollected tax a debt owed to the City, enforceable by lien recorded against the property through the Los Angeles County Recorder and collected with the general property tax roll, or by a civil action that can recover the City's attorney fees.

The Bottom Line

Long Beach's hotels & lodging rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Long Beach is broadly strict or permissive.

This guide is based on Long Beach's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.