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

PMC §4.24.030 sets the Uniform Transient Occupancy Tax at 10 percent of the rent charged for occupancy in any hotel or private campground, a definition that under §4.24.020 sweeps in short-term vacation rentals because "hotel" is defined to include any structure occupied by transients for dwelling, lodging, or sleeping purposes, including a mobile home or house trailer at a fixed location. The tax is a debt owed by the guest to the City, extinguished only when paid to the operator, and IZO §7.110(C)(4) separately makes satisfying this tax a condition of every Short-Term Vacation Rental Permit.

Operators must register with the tax administrator and post a transient occupancy registration certificate under §4.24.060, then file a monthly report of rents and tax collected and remit the full amount within fifteen days of the end of the previous month under §4.24.070. Failing to timely remit occupancy tax is also independent grounds for the Planning Director to deny renewal of a host's Short-Term Vacation Rental Permit under IZO §7.110(I)(3)(a). Penalties escalate under §§4.24.080-100: a 10 percent penalty for late remittance, an additional 10 percent if still unpaid 30 days later, and 25 percent if the tax administrator finds fraud, plus interest of one-half of one percent per month under §4.24.110 on the unpaid tax until it is paid in full.