Palm Desert, CA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- TOT rate
- Eleven percent of rent, under § 3.28.030
- Return frequency
- Monthly, even if the unit was not rented
- Platform does not collect
- Host or operator collects and remits TOT to the city
- TBID assessments
- Host or operator collects and remits them to the city
- TOT registration fee
- Five dollars for each permit issued
- Record retention
- Three years, per § 5.10.110
- Unpermitted rental fine
- Five thousand dollars per citation
Summary
In the City of Palm Desert, California, every short-term rental owes transient occupancy tax under Chapter 3.28, and the host or operator must file a monthly return even for a month with no bookings. If a hosting platform does not collect payment, the host collects and remits the tax directly to the city.
M. Unless otherwise provided in this chapter, the host or operator shall comply with all provisions of Chapter 3.28 of the PDMC concerning TOT, including, but not limited to, submission of a monthly TOT return in accordance with Section 3.28.070 of Chapter 3.28 of the PDMC, which shall be filed monthly even if the short-term rental unit was not rented during each such month. N. Transient occupancy taxes shall be collected on all short-term rentals pursuant to PDMC Chapter 3.28 (Transient Occupancy Tax). If a hosting platform does not collect payment for the rental, hosts or operators are solely responsible for the collection of all applicable TOT and remittance of the collected tax to the city in accordance with Chapter 3.28 (Transient Occupancy Tax). Upon compliance with the Greater Palm Springs Tourism Business Improvement District (TBID) authorized by the California Streets and Highways Code Section 36600 et seq., the host or operator shall also be responsible for collection and remittance of all TBID assessments to the city.
Full Breakdown
Palm Desert Municipal Code § 5.10.090 sets the operating conditions for every short-term rental permit in the City of Palm Desert, and subsections M and N tie each rental to the city's transient occupancy tax (TOT). Subsection M requires the host or operator to comply with all of Chapter 3.28, including a monthly TOT return under § 3.28.070, filed monthly even if the unit sat empty. Subsection N says TOT is collected on all short-term rentals. Where a hosting platform does not collect payment for the rental, the host or operator is solely responsible for collecting the tax and remitting it to the city.
The tax itself is the eleven percent rate in § 3.28.030, and the chapter's definition of "hotel" in § 3.28.020 expressly includes a "short-term rental unit" as defined in Chapter 5.10. Under § 5.10.050(B), the short-term rental permit also serves as the transient occupancy registration permit required by § 3.28.060, provided the applicant meets the requirements of both chapters. Section 3.28.060(B) sets a registration fee of five dollars for each permit issued.
Subsection N adds a second charge. Once the rental complies with the Greater Palm Springs Tourism Business Improvement District (TBID), authorized by California Streets and Highways Code Section 36600 et seq., the host or operator is also responsible for collecting and remitting all TBID assessments to the city.
Other fees come from city council resolution. Section 5.10.060(C) requires every short-term rental permit application to come with an application processing fee established by resolution of the city council, and § 5.10.060(D) requires a new owner to file a new application and pay the requisite fee within thirty days of a change of ownership. A permit is not issued or renewed while city fines or fees are outstanding on the property (§ 5.10.060(E)). Section 5.10.110 requires the host or operator to keep tax records for three years, available to the tax administrator within one week of a request.
Violations & Fines
Failing to pay tax on time triggers § 3.28.080: a penalty of ten percent of the tax plus interest at one percent per month, with fraud adding a penalty of one hundred percent of the tax. Renting without a validly issued short-term rental permit carries a fine of five thousand dollars for the first citation and each additional citation under § 5.10.120(E), and the city can refuse new or renewed permits for that property or host.
Frequently Asked Questions
Do I owe Palm Desert transient occupancy tax if Airbnb or another platform handles payment?
Do I file a TOT return in a month when nobody stayed?
What is the TOT rate on a Palm Desert short-term rental?
Is there a separate tourism assessment besides TOT?
How long must I keep rental tax records?
Sources & Official References
Other rules in Palm Desert
How Palm Desert compares: Cities with the Highest Short-Term Rental Taxes·California rules heatmap·Compare Palm Desert to another location·View the California short-term rentals overview
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