Merced County, CA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 10% of rent charged
- Applies to
- unincorporated area only
- Transient period
- 30 consecutive days or less
- Filing frequency
- quarterly returns to Tax Collector
- Late penalty
- 10% + 10% + up to 25% for fraud
- Interest
- 1.5% per month on unpaid tax
Summary
Unincorporated Merced County imposes a 10% transient occupancy tax on rent charged for hotel, motel, and short-term rental stays of 30 consecutive days or less. Operators collect the tax from guests, register with the county, and remit it quarterly to the Tax Collector; late payment triggers automatic penalties.
There is imposed a tax upon each transient for the privilege of occupancy in any hotel or other transient facility in any unincorporated area within the county. The tax imposed by this chapter shall be at the rate of 10% of the rent charged by the operator, on the effective date of the ordinance codified in this chapter. Said tax constitutes a debt owed by the transient to the county which is extinguished only by payment to the operator or directly to the tax collector.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4930839; v8 updated 2026-06-02).
Full Breakdown
270) in the unincorporated area. 040 sets the rate at 10% of rent charged, payable by the transient to the operator or directly to the Tax Collector, with proceeds going to the county's general fund. 050 requires the operator to refund tax already collected for the initial 30 days. 030 exempts federal and state officers on official business, certain foreign-government employees, and insurance-company and federal-credit-union employees on qualifying business, but only if a sworn exemption claim is filed with the operator at the time rent is collected.
070 and post the resulting Transient Occupancy Registration Certificate conspicuously on the premises; registration is due within 30 days of commencing business and does not excuse tax owed before registering. 080 requires quarterly returns and full remittance to the Tax Collector by the last day of the month following each quarter, with the collector authorized to shorten the reporting period for any operator. 060 requires the tax to be separately stated from rent on the guest receipt and bars operators from advertising that they will absorb or waive it.
Violations & Fines
Section 5.32.090 imposes a 10% penalty on any tax not remitted on time, a second 10% penalty if the delinquency continues 30 days past the original due date, and a 25% fraud penalty on top of those if the Tax Collector finds the nonpayment fraudulent. Interest accrues at 1.5% per month on unpaid tax until paid, and all penalties and interest merge into the tax debt. Under Section 5.32.100 the Tax Collector can estimate and assess unpaid tax after notice and a hearing, and Section 5.32.110 authorizes recording a certificate of tax lien against the operator's real property in the county, enforceable like a judgment lien.
Frequently Asked Questions
What is the hotel tax rate in unincorporated Merced County?
Who has to collect and remit the tax?
What happens if the tax is paid late?
Sources & Official References
Other rules in Merced County
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