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

Every short-term rental guest in Redding pays the city's transient occupancy tax. Redding Municipal Code § 4.12.020 sets the rate: "each transient is subject to and shall pay a tax in the amount of ten percent of the rent charged by the operator," due at the time rent is paid and owed by the transient until it is remitted to the operator or the city. The "hotel" definition triggering this tax in Section 4.12.010 is written broadly enough to reach a rented dwelling unit, covering "any structure...occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes." Section 18.43.180(E)(15) folds this tax obligation directly into the short-term rental permit: "A City business license shall be obtained and transient occupancy taxes paid in accordance with Chapter 4.12 as required.

All advertising for any short-term rental shall include the City of Redding transient occupancy tax number and the City of Redding business license number assigned to the applicant." Operators must also file a monthly return under Section 4.12.060 within twenty days of month's end, remitting the full tax collected, and the E(15) reporting duty additionally requires disclosing the number of short-term-rental tenant stays each period. Missing a remittance deadline is expensive: Section 4.12.070 layers a ten percent penalty for a late remittance, another ten percent if it stays unpaid thirty days past that, a twenty-five percent fraud penalty on top where fraud is found, and one and one half percent monthly interest on the unpaid tax until it is paid.