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

Monterey City Code § 35-11 sets the transient occupancy tax at 12% of the rent charged by the operator for occupancy of a visitor accommodation facility, a debt the transient guest owes the City that is only extinguished by payment to the operator or the City directly; if paid in installments, a proportionate share of the tax is due with each installment. The operator (defined broadly in § 35-10 to include a hotel's managing agent or an online booking agent such as Expedia or Travelocity) must collect the tax at the same time as the rent under § 35-13, state it separately on the guest's receipt, and may never advertise that the tax will be absorbed into the room rate or refunded.

Before opening, every hotel must register with the Finance Director within 10 days of commencing business under § 35-14, supplying the facility's name, address, telephone number, the operator's name and phone number, the date operations began, the number of rooms available for rent, and the Assessor's Parcel Number; the registration is not itself a business permit. Monthly returns and full remittance of the prior month's collections are due on or before the 15th of each month (§ 35-15), and the Finance Director can require shorter reporting periods or direct deposit from a hotel that becomes delinquent.

Occupancy records, including daily room rate and tax collected, must be retained for four years and produced within 10 working days of a written request (§ 35-19). A hotel operator disputing a Finance Director assessment for fraud, an audit deficiency, or a failure-to-report determination may appeal to the Appeals Hearing Board within 15 calendar days by filing written notice with the City Attorney's Office (§ 35-18); if the appeal succeeds, the City must refund the disputed amount within 30 days of the Board's decision.