Chico, CA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 10% of rent
- Applies to
- stays under 31 days
- Returns due
- monthly, by month's end
- Late penalty
- 10-15%, capped at 50%
- Criminal penalty
- misdemeanor, $500/6 months
Summary
Chico's Uniform Transient Occupancy Tax Law charges guests 10% of the rent on any hotel stay under 31 days, collected by the operator and remitted to the city monthly.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of 10 percent of the rent charged by the operator. Such tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the finance director may require that such tax be paid directly to the finance director. (Prior code § 25.77 (Ord. 849 §1 (part), Ord. 906 §1, Ord. 1268 §1, Ord. 1737
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Supplement contains local legislation current through: Codified Resolution No. 53-26, adopted 7-14-26 and Ordinance No. 2622, adopted 6-2-26).
Full Breakdown
Under Chico Municipal Code § 3.52.080, every transient occupying a hotel room pays a tax equal to 10 percent of the rent charged by the operator; the debt runs from the guest to the city and is extinguished only by payment to the operator or the city. Operators collect the tax at the time rent is paid, hold it in trust for the city, and file monthly returns with the finance director by the last day of the following month under § 3.52.140. The definition of "hotel" in § 3.52.030 expressly reaches short-term home-sharing and vacation rental units, so the same rate applies to those bookings.
Violations & Fines
Late payment draws a 10% penalty for a first violation and 15% for repeat violations within six months (capped at 50% of the tax owed), plus 1% monthly interest; failing to collect, report, or remitting a false return is a misdemeanor with fines up to $500 and up to six months in jail.
Frequently Asked Questions
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Sources & Official References
Other rules in Chico
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