Highland, CA Short-Term Rentals: Taxes & Fees (2026)

The Highland City Council adopted the uniform transient occupancy tax in Ordinance 9 in 1987, and Chapter 3.20 of the Highland Municipal Code still carries it. Whether a rental is covered turns on two definitions in HMC § 3.20.020. A "hotel" is any structure, or any portion of any structure, occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and the printed list of examples includes lodging houses, rooming houses, apartment houses, and a mobilehome or house trailer at a fixed location. A "transient" is a person whose occupancy runs 30 consecutive calendar days or less, counting portions of calendar days as full days. An occupant stays a transient until the 30 days expire unless the operator and the occupant have a written agreement for a longer period.

The "operator" is whoever is proprietor of the space, as owner, lessee, sublessee, mortgagee in possession, licensee or in any other occupancy. A managing agent who is not an employee is also an operator with the same duties and liabilities, and compliance by either the principal or the agent counts as compliance by both. The rate is seven percent of the rent charged (HMC § 3.20.030). The operator collects it when rent is collected, states it separately from the rent, and gives each transient a receipt (HMC § 3.20.050). Within 30 days after commencing business, the operator registers with the tax administrator, who is the city manager, and posts the transient occupancy registration certificate in a conspicuous place (HMC § 3.20.060). Returns are due on or before the last day of the month following the close of each calendar quarter (HMC § 3.20.070).

Separate from the tax, a business that rents residential units, including single-family units, needs a Highland business license for each property location under HMC § 5.04.360. The finance department will not issue the certificate until the owner submits a residential rental program application with a self-certification checklist under Chapter 15.52 HMC. The license fee is set by City Council resolution (HMC § 5.04.040).