Monterey County, CA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- TOT registration
- Required under Chapter 5.40 (§ 7.120.040(C))
- Business license
- Required under Chapter 7.02 (§ 7.120.040(D))
- Fee amounts
- Set by Board Fee Resolution (§ 7.120.120)
- Missed payment consequence
- Grounds for non-renewal (§ 7.120.110(B)(3))
- Revocation ground
- Unpaid taxes/fees (§ 7.120.130(A)(4))
Summary
Every licensed vacation rental in unincorporated Monterey County must register for a Transient Occupancy Tax certificate and hold a county business license before renting. County Code § 7.120.040(C)-(D) requires TOT registration under Chapter 5.40 and a business license under Chapter 7.02, both kept current for as long as the rental operates.
C.The operator shall register the vacation rental with the County and obtain a Transient Occupancy Tax Certificate in accordance with the provisions of Chapter 5.40 of the Monterey County Code.D.The operator shall obtain a business license from the County pursuant to Chapter 7.02 of the Monterey County Code before commencing the vacation rental use and must keep a valid business license throughout the vacation rental use.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 56).
Full Breakdown
Section 7.120.040(C) requires the operator to 'register the vacation rental with the County and obtain a Transient Occupancy Tax Certificate in accordance with the provisions of Chapter 5.40 of the Monterey County Code.' Section 7.120.040(D) separately requires the operator to 'obtain a business license from the County pursuant to Chapter 7.02 of the Monterey County Code before commencing the vacation rental use and must keep a valid business license throughout the vacation rental use.' The in-unit notice required near the front door must display copies of both the business license and the TOT certificate, under § 7.120.040(L)(5)-(6).
Beyond the tax and business-license fees, § 7.120.120 states that 'fees, fines, and costs specified by this Chapter shall be established by the Board of Supervisors and as set forth in the Monterey County Fee Resolution, pursuant to Chapter 1.40 of the Monterey County Code, as periodically amended,' meaning the license, application, and renewal dollar amounts are set separately by resolution rather than fixed in the ordinance text. Failure to keep the business license or TOT payments current is an independent ground to deny license renewal under § 7.120.110(B)(3).
Violations & Fines
An operator who fails to pay TOT or keep a valid business license risks license non-renewal under § 7.120.110(B)(3), and 'failure to pay all applicable taxes, fees, and penalties required by the County' is an express ground for outright license revocation under § 7.120.130(A)(4). Operating without the required certificates also exposes the operator to the Chapter 7.120 civil citation schedule of up to $1,000 for a first offense, $2,500 for a second, and $5,000 for a third within a year (§ 7.120.160(D)).
Frequently Asked Questions
Do Monterey County vacation rentals have to collect Transient Occupancy Tax?
Is a separate business license required on top of the vacation rental license?
Where can I find the actual license and TOT fee amounts?
Sources & Official References
Other rules in Monterey County
How Monterey County compares: Cities with the Highest Short-Term Rental Taxes·California rules heatmap·Compare Monterey County to another location·View the California short-term rentals overview
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