What is the Transient Occupancy Tax ?
This tax is imposed on the transient tenant for occupying space or use of furnishings or other services or accommodations in a hotel, motel, or any other structure intended for occupancy by transients for dwelling, lodging, or sleeping purposes for a period of thirty (30) consecutive calendar days or less.
Definition of Terms Used With Transient Occupancy Tax:
Hotel: Any structure, or any portion of any structure, which is occupied, or intended or designed for occupancy, by transients for dwelling, lodging, or sleeping purposes and shall include any hotel, inn, tourist house or home, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club. “Hotel” also includes a mobile home which is located outside a mobile home park when the tenant is not an employee of the owner or operator of the mobile home. “Hotel” does not include a hospital room, medical clinic, convalescent home or home for the aged.
Occupancy: The use or possession, or the right to the use or possession, of any room, or portion thereof, in any hotel for dwelling, lodging, or sleeping purposes.
Operator: The person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. This also includes vacation/part-time rental agencies.
Person: Any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.
Rent: The consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor, or otherwise, including all receipts, cash, credit, and property and services of any kind or nature.
Transient: Any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of 30 consecutive calendar days or less.
How is Transient Occupancy Tax paid to the Tax Collector?
Occupancy Tax is reported on a quarterly basis. The tax is due and payable on the 1st day following the end of the quarter.
- 1st quarter - Jan, Feb, Mar - delq if not paid by Apr 30
- 2nd quarter - Apr, May, Jun - delq if not paid by July 31
- 3rd quarter - Jul, Aug, Sept - delq if not paid by Oct 31
- 4th quarter - Oct, Nov, Dec - delq if not paid by Jan 31
Quarterly tax returns may be downloaded from our website here
How do I apply for a Transient Occupancy Tax Certificate?
for an application.
Please mail your completed application to:
Karen D. Adams, CPA
Merced County Treasurer/Tax Collector
Attn: Transient Occupancy Tax Section
2222 M St.
Merced, CA 95340
You must submit your application within 30 days of commencing business. After your application has been processed, you will receive your Transient Occupancy Registration Certificate, which must posted in a conspicuous place on the premises for which it is issued.