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Lancaster, 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
7% of rent charged
Covered stays
30 consecutive days or less
Enforcing official
Tax administrator (city manager)
Reporting
Quarterly, due month-end after quarter close
Late penalty
10%, plus 10% more after 30 days
Fraud penalty
25% additional
Records retention
3 years, available for inspection

Summary

Lancaster charges a 7% transient occupancy tax on hotel and short-term rental stays under 30 days. Operators collect the tax at the time rent is paid and remit it quarterly to the city's tax administrator, the city manager.

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of seven percent of the rent charged by the operator. This tax constitutes a debt owed by the transient to the city which is extinguished only by payment 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.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 10 - 2025).

Full Breakdown

030 sets Lancaster's transient occupancy tax at seven percent of the rent charged by the operator for any stay of 30 consecutive days or fewer. The tax is a debt owed by the transient to the city, extinguished only when paid to the operator with the rent; if rent is paid in installments, a proportionate share of the tax is due with each installment. 020 defines a covered "hotel" broadly: any structure occupied or designed for occupancy by transients for dwelling, lodging or sleeping, including tourist homes, motels, studio and bachelor hotels, lodging and rooming houses, apartment houses, dormitories, public or private clubs, and mobilehomes or house trailers at a fixed location, meaning short-term rentals fall within the tax's reach.

060). 070, operators file quarterly reports and remit the full tax collected to the tax administrator by the last day of the month following each calendar quarter; the administrator may set shorter reporting periods. 110). 040).

Violations & Fines

A late remittance draws a 10% penalty under Section 3.16.080, plus a second 10% penalty if still unpaid 30 days after the original delinquency date. Fraud in nonpayment adds a 25% penalty on top of both delinquency penalties, and unpaid tax accrues interest at 0.5% per month until paid; all penalties and interest become part of the tax owed. Under Section 3.16.150, any operator who fails to register, keep records, file reports, or who files a false or fraudulent return is guilty of a misdemeanor punishable under Chapter 1.12. Operators may not advertise that they will absorb the tax or that it won't be added to rent (Section 3.16.050). Assessed operators may request a hearing within 10 days of notice, and an unfavorable determination may be appealed to the city council per Section 3.16.100.

Frequently Asked Questions

What is Lancaster's hotel occupancy tax rate?
Seven percent of the rent charged, imposed on every transient occupying a hotel room for 30 consecutive days or less, under Municipal Code Section 3.16.030. The operator collects it with the rent and remits it to the city's tax administrator.
Do short-term rentals count as hotels under Lancaster's tax code?
Yes. Section 3.16.020 defines "hotel" to include any structure or portion of a structure occupied by transients for dwelling, lodging or sleeping, a definition broad enough to cover short-term rentals, motels, rooming houses, and even mobilehomes at a fixed location.
What happens if an operator pays the transient occupancy tax late?
Section 3.16.080 imposes a 10% penalty for an original delinquency, another 10% if the remittance is still unpaid 30 days later, and a 25% penalty if the tax administrator finds fraud, plus 0.5% monthly interest on the unpaid tax until it is paid in full.
Who is exempt from Lancaster's transient occupancy tax?
Only officers or employees of a foreign government who are exempt under express provisions of federal law or international treaty, per Section 3.16.040. There is no general exemption for long-term corporate stays or other categories.

Sources & Official References

Other rules in Lancaster

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