Hotels & Lodging in San Jose, CA: What Residents Actually Need to Know

If you live in San Jose or are thinking about moving there, hotels & lodging are one of those things you probably won't think about until they affect you directly. San Jose has 3 specific rules on the books covering different aspects of hotels & lodging, and some of them might surprise you.

Transient Occupancy Tax

SJMC Chapter 4.72 imposes a 10% Transient Occupancy Tax on every hotel, motel, and short-term rental stay under 30 days in San Jose. Operators register, collect from guests, and remit monthly to Finance, on top of a separate Tourism Improvement District assessment.

Key details: Code: SJMC Chapter 4.72. TOT rate: 10 percent of rent. TID assessment: Roughly 4 percent additional. Stay limit: Under 30 consecutive days. Filing: Monthly returns to Finance.

Failure to register, collect, file, or remit SJMC 4.72 TOT is a misdemeanor with penalties up to 25% plus interest. Operators who collect but fail to remit face personal liability; STR violations can also trigger permit revocation.

Hotel Worker Retention

San Jose's 2020 Hotel Worker Right of Recall ordinance and California SB-93 require hotel operators to offer laid-off workers their old jobs back when positions reopen. Recalls go to laid-off workers in seniority order before new hires, with private right of action for violations.

Key details: City ordinance: SJ Hotel Worker Recall, 2020. State law: SB-93, Labor Code §2810.8. Coverage: Hotels 50+ rooms typically. Recall order: Seniority among laid-off. Enforcement: Labor Commissioner, civil suit.

Failure to offer recall before hiring new workers triggers SB-93 civil actions with reinstatement, back pay, damages, and attorneys' fees. The Labor Commissioner may assess penalties up to $500 per worker per day; SJ ordinance adds local enforcement.

Hotel Living Wage

SJMC Chapter 4.100 requires city service contractors and tenants at Mineta San Jose International Airport to pay a living wage well above state minimum, indexed annually. Health benefits offset is allowed; covered workers also accrue paid sick leave and protections against retaliation.

Key details: Code: SJMC Chapter 4.100. Coverage: City service contractors, SJC tenants. Indexing: Annual Council resolution. Health offset: Lower wage with benefits. Enforcement: Office of Equality Assurance.

Underpayment of the SJMC 4.100 living wage triggers back wages, liquidated damages, and contract suspension or debarment by the Office of Equality Assurance. Retaliation is independently actionable; payroll falsification can support fraud claims and termination.

The Bottom Line

San Jose'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 San Jose is broadly strict or permissive.

Keep in mind that San Jose can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.