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

Section 3-13.03 sets the rate: each transient pays a tax of 10% of the rent charged by the operator, and the debt is extinguished only by payment to the operator or the City. "Transient" is defined in Section 3-13.02 as anyone occupying space for 30 consecutive calendar days or less, counting partial days as full days, which is the line that separates a taxable hotel stay from a longer-term rental. "Hotel" covers any structure occupied for dwelling, lodging or sleeping purposes, including motels, tourist homes, rooming houses, apartment houses and mobile homes or house trailers at a fixed location.

Every operator must register with the Tax Administrator within 30 days of commencing business and post a Transient Occupancy Registration Certificate, valid for one year and renewed annually; the Tax Administrator can revoke it for nonpayment or any Code violation (Section 3-13.06). Operators must state the tax separately from rent and cannot advertise that they will absorb it (Section 3-13.05). Returns and full remittance are due to the Tax Administrator by the last day of the month following each calendar quarter, or on a shorter period the Tax Administrator sets (Section 3-13.07).

The Tax Administrator may also require a security deposit of cash or bond up to $15,000.00, or the operator's estimated one-year liability if lower, to guarantee payment (Section 3-13.16). Operators disputing an assessed amount can request a hearing within 10 days and appeal the Tax Administrator's determination to the City Council within 15 days by filing notice with the City Clerk (Sections 3-13.09, 3-13.10).