San Marcos, CA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 10% of rent charged
- Transient defined as
- Occupancy 30 consecutive days or less
- Registration deadline
- Within 30 days of opening
- Return filing
- Quarterly, by end of following month
- Original delinquency penalty
- 10% of tax due
- Fraud penalty
- 25% additional
- Appeal window
- 15 days to City Council
Summary
San Marcos charges a 10 percent transient occupancy tax on rent paid by anyone occupying a hotel, motel, or similar lodging for 30 consecutive days or less. Operators must register with the Tax Administrator, collect the tax from guests, and remit it quarterly.
For the privilege of occupancy in any hotel, each transient is subject to, and shall pay a tax in the amount of ten percent of the rent charged by the operator. Said tax constitutes a debt owed by the transient 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 to the operator of the hotel, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 14 Update 1).
Full Breakdown
16, the Uniform Transient Occupancy Tax Ordinance, taxes occupancy in any "Hotel," defined to include any structure or portion of a structure occupied for dwelling, lodging or sleeping, including hotels, motels, tourist homes, apartment houses, dormitories, and mobilehomes or house trailers at a fixed location (Sec. 020). A "Transient" is anyone occupying space for 30 consecutive calendar days or less unless a written agreement provides for longer occupancy, which brings short-term rentals of any dwelling type within the tax's reach. Sec. 030 imposes the tax at 10 percent of the rent charged, payable by the transient to the operator at the time rent is paid, or in proportionate installments if rent is paid in installments; if the operator does not collect it, the Tax Administrator (the City Treasurer, per Sec.
020) can require the transient to pay directly. Operators may not advertise that they will absorb or waive the tax (Sec. 050). Every operator must register the hotel within 30 days of opening and post a transient occupancy registration certificate on the premises (Sec. 060), separately state the tax from rent on receipts (Sec. 070), hold collected tax in trust for the City (Sec. 080), keep records for three years (Sec. 090), and file quarterly returns with full remittance (Sec. 100). Limited exemptions apply where taxation is beyond the City's power, or for on-duty federal or California state officers and foreign government officials, but must be claimed in writing at the time rent is collected (Sec. 040).
Violations & Fines
An operator who is late remitting the tax owes a 10 percent penalty, plus a second 10 percent penalty if delinquent more than 30 days, plus a 25 percent fraud penalty if nonpayment is found fraudulent, and interest at 0.5 percent per month on the unpaid tax (Sec. 3.16.110). The Tax Administrator can assess tax based on available facts if an operator refuses to report, with the assessment becoming final unless the operator requests a hearing within 10 days and appeals an adverse determination to the City Council within 15 days (Secs. 3.16.120, 3.16.130). Any other violation, including failing to file a return or filing a false one, is punishable under Sec. 1.12.010's general penalty (Sec. 3.16.160).
Frequently Asked Questions
What is San Marcos's hotel tax rate?
Does the tax apply to short-term rentals, not just hotels?
What happens if an operator remits the tax late?
Can an operator absorb the tax instead of charging guests?
Sources & Official References
Other rules in San Marcos
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