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

Monterey County's Uniform Transient Occupancy Tax Ordinance, codified at Monterey County Code Chapter 5.40, imposes the county's hotel tax only within the unincorporated area; Salinas, Monterey, Seaside, Marina, Carmel-by-the-Sea, Pacific Grove and King City each set and collect their own occupancy tax under their own city codes. Under Section 5.40.030, every transient occupying a covered hotel, motel, inn, bed and breakfast, mobile home at a fixed location, or a licensed vacation rental pays the Treasurer-Tax Collector 10.5 percent of the rent charged by the operator.

The tax is collected by the operator at the same time as rent under Section 5.40.060 and must be stated separately from the room charge; the operator may not advertise that the tax is absorbed into the rate. Within 30 days of commencing business, every operator must register with the Tax Collector and post a Transient Occupancy Registration Certificate on the premises under Section 5.40.070. Returns and full payment are due by the last day of the month following each calendar quarter under Section 5.40.080, and all collected tax is held in trust for the County until remitted.

Section 5.40.090 sets escalating penalties: 10 percent for an original delinquency, another 10 percent if still unpaid 30 days later, a 25 percent fraud penalty on top of those, and 1.5 percent monthly interest on the unpaid tax. Operators who fail to report or remit face a Tax Collector determination of the amount owed, with a right to a hearing within 10 days and a further appeal under Section 5.40.130. Limited exemptions exist for federal employees on official business, foreign government officials, and emergency-housing voucher holders, but claims must be filed under penalty of perjury at the time rent is collected under Section 5.40.050.