Merced, CA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 10% of rent charged
- Collected by
- hotel operator, remitted to finance officer
- Reporting
- quarterly, due end of following month
- Late penalty
- 10% + 10% (30-day) + 25% (fraud)
- Interest
- 1% per month on unpaid tax
- Appeal deadline
- 15 days to city clerk
- Records retention
- 3 years, inspectable by finance officer
Summary
Every transient occupying a room in a Merced hotel, motel, inn, or similar lodging pays a 10 percent transient occupancy tax on the rent charged, collected by the operator under Municipal Code Sec. 3.08.030. The tax is a debt the guest owes the city, due when rent is paid, or proportionally with each rent installment.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of ten percent (10%) 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 the operator of the hotel, the finance officer may require that such tax shall be paid directly to the finance officer.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 85 - 1-26).
Full Breakdown
08, taxes anyone who occupies a hotel room for 30 consecutive days or less (Sec. F). The city's definition of 'hotel' in Sec. B is broad: it covers hotels, motels, and inns as well as tourist homes, lodginghouses, apartment houses, and mobile homes or house trailers at a fixed location, so any short-term paid lodging in the city falls under this ordinance. Sec. 030 sets the rate at 10 percent of the rent charged, paid by the transient to the operator at the time rent is collected; the tax becomes a debt owed to the city if unpaid, and the finance officer can require it be paid directly to the city if the operator does not collect it.
Operators must separately state the tax on the guest's receipt and are barred from advertising that they will absorb or refund it (Sec. 040). Every operator must file a quarterly return with the finance officer and remit the collected tax by the last day of the month following each calendar quarter, holding the money in trust for the city until it is paid over (Sec. 060). Records supporting the tax collected must be kept for three years and are subject to inspection by the finance officer (Sec. 100). Refund claims from an operator or a transient must be filed within one year of the overpayment (Sec. 110).
Violations & Fines
Failing to remit the tax on time triggers a 10 percent penalty on the amount due, plus a second 10 percent penalty if the delinquency continues past 30 days, and a 25 percent penalty if the finance officer finds fraud, on top of 1 percent monthly interest on the unpaid tax (Sec. 3.08.070). Violating any provision of Chapter 3.08, including failing to register or filing a false return, is a misdemeanor punishable under Chapter 1.12 (Sec. 3.08.130).
Frequently Asked Questions
What is the transient occupancy tax rate in Merced?
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Sources & Official References
Other rules in Merced
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