How Sacramento Handles Hotels & Lodging: A Practical Guide

Sacramento maintains 188 local ordinances across all categories, and 2 of those deal specifically with hotels & lodging. Here is a breakdown of what the city actually requires, what is prohibited, and where Sacramento falls on the strict-to-permissive spectrum compared to other cities.

Transient Occupancy Tax

Sacramento charges a 12 percent transient occupancy tax on rent paid by anyone occupying a hotel, motel, or other lodging for 30 consecutive days or less. Operators collect the tax from guests, file quarterly returns with the assessor-collector, and remit it to the city under City Code Chapter 3.28.

Key details: Combined tax rate: 12% of rent charged. Base rate: 7% effective 8/1/1976 (§3.28.030). First add-on: 3% effective 6/30/1978 (§3.28.040). Second add-on: 2% effective 7/1/1994 (§3.28.050). Filing frequency: Quarterly return, due end of following month.

Under § 3.28.110, a late remittance draws a 10 percent penalty, a second 10 percent penalty if still unpaid 30 days after the original due date, and interest at one-half of one percent per month on the unpaid tax. A remittance the assessor-collector finds fraudulent draws an additional 25 percent penalty. Section 3.28.170 makes any violation, including an operator's failure to register, file a return, or furnish required data, or filing a false or fraudulent return, an infraction under Government Code § 36900(b).

Hotel Living Wage

Sacramento has not enacted a hotel-specific living wage ordinance. Hotel workers are covered by the higher of California's indexed statewide minimum wage and Sacramento's general local minimum wage, with no industry premium.

Key details: City hotel wage: None. State minimum 2025: 16.50 per hour. Tip credit: Prohibited. Indexing: Annual CPI.

Wage and hour complaints proceed through the California Labor Commissioner; failure to pay the applicable minimum exposes employers to back wages, liquidated damages, waiting time penalties, and PAGA representative actions.

The Bottom Line

Sacramento'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 Sacramento is broadly strict or permissive.

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