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

Section 32.75 of the Redwood City Code imposes the tax: 'For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of twelve percent (12%) of the rent charged by the operator.' The tax is a debt owed by the transient that is extinguished only by payment to the operator or the City, and it becomes due the moment the guest stops occupying the room. Section 32.71 defines 'hotel' to include 'a short-term rental as provided for in Section 31.3 of the Redwood City Zoning Ordinance,' and defines 'operator' to include a host under that same zoning section, so Airbnb and VRBO listings owe the tax exactly like a traditional hotel.

Operators must state the tax separately from rent on every receipt and are barred from advertising that they will absorb or refund it (Section 32.77). Within 30 days of opening for business, each operator registers with the Tax Administrator, the City's Collector, and posts a free Transient Occupancy Registration Certificate on the premises (Section 32.78); a hosting platform that signs a voluntary collection agreement can register once and cover every host who books solely through it (Section 32.80). Returns and full remittance are due by the last day of the month following each calendar quarter, or on a shorter cycle the Tax Administrator sets (Section 32.79), and records must be kept three years and produced on the Tax Administrator's subpoena (Section 32.87). A hotel operator who disputes an assessment has 10 days to demand a hearing and can appeal the Tax Administrator's final determination to the City Council within 15 days under Section 32.95.