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Cupertino, CA Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Tax rate
12% of rent charged by the operator
Covered stays
30 consecutive days or less defines a transient
Collecting agency
City Tax Administrator (Director of Finance/designee)
Registration deadline
Within 30 days of commencing business
Reporting frequency
Quarterly, due the month after quarter ends
Delinquency penalty
10% original, plus 10% more after 30 days
Appeal window
15 days to appeal to City Council

Summary

Cupertino levies a 12 percent transient occupancy tax on rent charged for hotel, motel and similar lodging stays of 30 consecutive days or less. Hotel operators collect the tax from each guest and remit it quarterly to the city's Tax Administrator, the Director of Finance or a designee, under Municipal Code Chapter 3.12.

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of twelve percent of the rent charged by the operator. The 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 Tax Administrator may require that such tax is paid directly to the Tax Administrator.

Full Breakdown

12 defines a "hotel" broadly to include any hotel, inn, motel, tourist home, rooming house, apartment house, dormitory, mobile home or house trailer at a fixed location offered for short-term occupancy, and a "transient" as anyone who occupies a room for 30 consecutive calendar days or less, including guests who book through internet-based hosting platforms. 030, each transient owes the city a tax equal to 12 percent of the rent charged, payable to the operator when rent is paid or, if unpaid, directly to the Tax Administrator.

060). 070); the Tax Administrator can shorten this reporting period for a given certificate holder. All tax collected is held in trust for the city until remitted. 090). 100). 110).

Violations & Fines

Late remittance draws an automatic 10 percent penalty, and a second 10 percent penalty if the delinquency continues 30 days past the due date. A fraud finding by the Tax Administrator adds a 25 percent penalty on top of both. Unpaid tax also accrues interest at 0.5 percent per month from the delinquency date. Violating Chapter 3.12 is a criminal infraction punishable under Chapter 1.12's general penalty provisions (Section 3.12.140).

Frequently Asked Questions

What is Cupertino's hotel tax rate?
Cupertino Municipal Code Section 3.12.030 sets the transient occupancy tax at 12 percent of the rent a hotel operator charges each guest staying 30 consecutive days or less. The operator collects the tax when rent is paid and remits it to the city; if the operator does not collect it, the Tax Administrator can require the transient to pay the city directly.
Who has to register as a hotel operator?
Any operator renting rooms to transients must register with the Tax Administrator within 30 days of the ordinance's effective date or of starting business, whichever is later, and post the resulting Transient Occupancy Registration Certificate in a conspicuous place under Section 3.12.060. The certificate does not authorize an unlawful business or substitute for any other required city permit.
What happens if an operator pays the tax late?
Section 3.12.080 imposes a 10 percent penalty for an original delinquency, an additional 10 percent if the remittance stays unpaid 30 days after it became delinquent, a 25 percent fraud penalty where applicable, and 0.5 percent monthly interest on the unpaid tax until it is paid in full.
Can an operator appeal a tax assessment?
Yes. If the Tax Administrator determines the tax owed after an operator fails to report, the operator may request a hearing within 10 days under Section 3.12.090, and then appeal an adverse determination to the City Council by filing a notice with the City Clerk within 15 days under Section 3.12.100.

Sources & Official References

Other rules in Cupertino

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