Arcadia, CA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Maximum rate
- Twelve percent (12%) of the rent charged to the transient
- Transient stay
- Ninety (90) consecutive calendar days or less; tax ends on day 91
- Return due
- Last day of the month after each calendar quarter
- Registration
- Within thirty (30) days after commencing business
- Late penalty
- 10% of the tax, plus a second 10% after thirty days
- Fraud penalty and interest
- 25% penalty; one-half of 1% interest per month
- Tax Administrator
- City Director of Finance, or designee
Summary
In the City of Arcadia, California, every transient who occupies a hotel room pays a tax in the maximum amount of twelve percent of the rent charged. The operator collects it with the rent, files a return each calendar quarter, and remits to the City's Tax Administrator, who is the Director of Finance.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the maximum amount of twelve percent (12%) of the rent charged to the transient. ... The transient shall pay the tax to the operator of the hotel at the time the rent is paid. ... The proceeds of this tax are allocated to the City's general fund for governmental expenditures. This chapter may be repealed or amended by the City Council without a vote of the People of the City of Arcadia. However, as required by California Constitution Article XIIIC (Proposition 218), voter approval is required for any amendment or provision that would increase the maximum rate or methodology of any tax levied pursuant to this chapter.
Full Breakdown
Arcadia Municipal Code § 2662 sets the tax at a maximum of twelve percent (12%) of the rent charged to the transient, for the privilege of occupancy in any hotel. The tax is a debt the transient owes the City, extinguished only by payment to the operator or the City. If the rent is paid in installments, a proportionate share of the tax is paid with each installment, and any unpaid tax comes due when the transient ceases occupancy. The proceeds go to the City's general fund. The City Council can repeal or amend the chapter without a vote, but voter approval is required for any change that raises the maximum rate or methodology, as California Constitution Article XIIIC (Proposition 218) requires.
The definitions in § 2661.2 and § 2661.4 decide who pays. A hotel is any structure or portion of a structure occupied or designed for occupancy by transients for dwelling, lodging or sleeping, and the list includes hotels, inns, motels, lodging houses, rooming houses, apartment houses, dormitories and mobile homes at a fixed location. A transient is a person whose occupancy lasts ninety (90) consecutive calendar days or less. The tax stops on the ninety-first (91st) day of an uninterrupted stay, and any break in occupancy starts a new ninety-day period. Under § 2661.5, rent is the total consideration charged, including service charges, parking fees, commissions, processing fees, cancellation charges and online booking fees, with no deduction. Bona fide food and beverage charges taxed under the state sales tax law are not rent.
Operator duties sit in Division 4. Under § 2661.6 an online travel company or other booking agent counts as an operator with the same duties as its principal. Under § 2664.1 the tax must be stated separately from the rent, each transient gets a receipt, and no operator may advertise that the tax will be absorbed. Under § 2664.2 an operator registers within thirty (30) days after commencing business and posts the Transient Occupancy Registration Certificate in a conspicuous place. Under § 2664.3 returns are due on or before the last day of the month following each calendar quarter. Exemptions in § 2663.2 cover federal and State of California officers or employees on official business, claimed on a form prescribed by the Tax Administrator. Operators keep exemption documentation and records for three (3) years.
Violations & Fines
Under § 2664.4.1 an operator who fails to remit on time pays a penalty of 10% of the tax on top of the tax. Under § 2664.4.2 a second 10% penalty applies if the remittance is still unpaid thirty (30) days after it first became delinquent. Under § 2664.4.3 a fraud finding by the Tax Administrator adds a 25% penalty. Under § 2664.4.4 interest runs at one-half of 1% per month from the delinquency date. Under § 2664.9 failing to register, file a return or pay, or filing a false or fraudulent return, is a violation. Under § 2664.8 the City can sue in its own name to recover any amount owed.
Frequently Asked Questions
What is the hotel tax rate in the City of Arcadia, California?
How long can a guest stay before the tax stops applying?
Do online travel companies have to collect the tax?
What happens if an operator disagrees with an assessment?
Does this tax cover short-term rentals of homes?
Sources & Official References
Other rules in Arcadia
California rules heatmap·Compare Arcadia to another location·View the California hotels & lodging overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Transient Occupancy Tax in Nearby Cities
How other cities in Los Angeles County handle transient occupancy tax.