Monrovia Municipal Code Ch. 3.44 Transient Occupancy Tax

This chapter shall be known as the “Uniform Transient Occupancy Tax of the City of Monrovia.”

(`83 Code, § 3.44.010)

For the purposes of this chapter, the words set out in this section shall be defined as follows:

HOSTING PLATFORM. A person or entity that provides a means through which an operator or host may advertise or offer a hotel or short-term rental, or portion thereof, for rental for a period of 30 consecutive calendar days or less. A HOSTING PLATFORM collects or receives a fee, directly or indirectly through an agent or intermediary, to conduct a booking transaction for occupancy of a hotel or short-term rental through a physical or electronic marketplace, such as an internet website or sales software application, or any other medium. This term encompasses persons or entities that constitute “short-term rental facilitators” pursuant to Cal. Government Code § 50991.

HOTEL. Any commercially operated hotel, motel, bed and breakfast inn, or similar transient lodging establishment or structure, which is at least partially subject to the transient occupancy tax outlined in this chapter, as defined under Cal. Government Code § 50991. “Short-term rentals” as separately defined in this section are excluded from the definition of HOTEL for administrative reasons, but remain subject to the tax imposed in this chapter.

OCCUPANCY. The use or possession, or the right to the use or possession, of any room or rooms, or portion, in any hotel or short-term rental for dwelling, lodging or sleeping purposes.

OPERATOR. A person who is proprietor of the hotel or other short-term rental, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the OPERATOR performs his or her functions through a managing agent of any type or character other than employee, the managing agent shall be deemed an OPERATOR for purposes of this chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

RENT. The consideration charged, whether or not received, for the occupancy of space in a hotel or other short-term rental valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

SHORT-TERM RENTAL. Any commercially operated home, house, room in a home or house, campsite, bed and breakfast home as defined under § 17.44.030, or any other structure approved for lodging, dwelling, or sleeping purposes, other than a “hotel” as defined in this chapter, for a period of 30 consecutive days or less, including rentals for which occupation is facilitated by a hosting platform or short-term rental facilitator.

TAX ADMINISTRATOR. The city Business License Officer.

TRANSIENT. Any person who exercises occupancy or is entitled to 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, counting portions of calendar days as full days. Any such person so occupying space in a hotel or other short-term rental establishment shall be deemed to be a TRANSIENT until the period of 30 days has expired, unless there is an agreement in writing between the operator of the short-term rental and the occupant at the beginning of the occupancy that provides for a longer period of occupancy. Occupants remaining in a hotel after the expiration of the 30 days, except for occupants of a residential hotel as defined in Cal. Health and Safety Code § 50519, shall re-register, at which time the 30-day time period shall start anew. This term is used interchangeably with the term “purchasers,” defined under Cal. Government Code § 50991, as persons who are required to pay the transient occupancy tax and who use a short-term rental facilitator to facilitate the occupancy of a short-term rental within the city.

(`83 Code, § 3.44.020) (Ord. 2026-02 § 1, 2026)

For the privilege of occupancy in any hotel or short-term rental, each transient is subject to and shall pay a tax in the amount of 12% of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel or short-term rental at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be due upon the transient’s ceasing to occupy space in the hotel or short-term rental. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator.

(`83 Code, § 3.44.030) (Ord. 92-12 § 1, 1992; Ord. 2018-02 § 1, 2018; Ord. 2026-02 § 2, 2026)

(A) The tax enacted by this chapter shall not be imposed upon any person or agency defined in the following:

(1) Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax provided in this chapter;

(2) Any federal or state officer or employee when on official business;

(3) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

(B) No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the Tax Administrator.

(`83 Code, § 3.44.040)

(A) Collection of tax. Each operator shall collect the tax imposed by this chapter, unless the amount is collected by the hosting platform through which facilitated the occupancy, to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel or other short-term rental establishment shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner provided in this chapter.

(B) Registration. Within 30 days after the effective date of this chapter, or within 30 days after commencing business, whichever is later, each operator of any hotel or other short-term rental that rents occupancy to transients shall register said establishment with the Tax Administrator and obtain from them a transient occupancy registration certificate to be at all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following:

(1) The name of the operator;

(2) The address of the hotel or short-term rental;

(3) The date upon which the certificate was issued;

(4) The following statement:

This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the Tax Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including, but not limited to, those requiring a permit from any board, commission, department or office of this city. This certificate does not constitute a permit.

(C) Reporting and remitting. Each operator shall, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Tax Administrator, make a return to the Tax Administrator, on forms provided by him or her, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The Tax Administrator may establish shorter reporting periods for any certificate holder if he or she deems it necessary in order to ensure collection of the tax, and he or she may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the city until payment thereof is made to the Tax Administrator.

(`83 Code, § 3.44.050) (Ord. 2026-02 § 3, 2026)

(A) Collection of tax. Each hosting platform shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient occupant. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the hosting platform. No hosting platform shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the hosting platform, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner provided in this chapter.

(B) Remittance. Each hosting platform shall remit the tax collected for transient occupancies to the Tax Administrator on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Tax Administrator, not more frequently than calendar quarterly. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by hosting platforms pursuant to this chapter shall be held in trust for the account of the city until payment thereof is made to the Tax Administrator.

(C) Reporting. The hosting platform for a short-term rental must provide the establishment’s physical address, including the ZIP code to the Tax Administrator upon request, in the reasonable reporting periods established by the Tax Administrator. If this information is deemed insufficient by the Tax Administrator, the establishment must further report the following information about each short-term rental:

(1) The assessor parcel number;

(2) Short-term rental listing website URL; and

(3) Additional information exclusively related to the identification of an accessory dwelling unit, guest house, or single unit of a larger housing project located at the single address and assessor parcel number provided.

(D) Registration. Subject to applicable laws, hosting platforms of any renting occupancy to transients shall register the listing with the Tax Administrator, disclose the names of the listing’s responsible person, address, length of stay, and price, and obtain a transient occupancy registration certificate consistent with an operator’s registration duties outlined under § 3.44.050. Hosting platforms for short-term rentals must require any host or operator with which the entity conducts business to include the valid city-issued transient occupancy registration certificate and business license number in the occupancy listing, and must only complete booking transactions for dwellings registered with the city at the time the hosting platform receives a fee for the transaction.

(E) City audit. The city may audit the records of hosting platforms that collect and remit the transient occupancy tax to the Tax Administrator on behalf of short-term rentals.

(F) The provisions of this section shall be interpreted in accordance with otherwise applicable state and federal laws and will not apply if determined by the city to be in violation of, or preempted by, any such laws.

(Ord. 2026-02 § 4, 2026)

(A) Generally. Penalties shall apply and interest shall be due as provided in the following division of this section.

(B) Original delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of tax.

(C) Continued delinquency. Any operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10% of the amount of the tax in addition to the amount of the tax and the 10% penalty first imposed.

(`83 Code, § 3.44.060)

(A) Penalty. If the Tax Administrator determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in § 3.44.060(B) and (C).

(B) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of 0.5% per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date of which the remittance first became delinquent until paid.

(C) Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this chapter shall become a part of the tax required in this chapter to be paid.

(`83 Code, § 3.44.070)

(A) If any operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, the Tax Administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due.

(B) As soon as the Tax Administrator shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the Tax Administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last-known place of address.

(C) Such operator may within ten days after the serving or mailing of such notice make application in writing to the Tax Administrator for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Tax Administrator shall become final and conclusive and immediately due and payable.

(D) If such application is made, the Tax Administrator shall give not less than five days' written notice in the manner prescribed in this chapter to the operator to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties.

(E) At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be fixed. After such hearing the Tax Administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this chapter of such determination and the amount of such tax, interest and penalties.

(F) The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in § 3.44.090.

(`83 Code, § 3.44.080)

Any operator aggrieved by any decision of the Tax Administrator with respect to the amount of such tax, interest and penalties, if any, may appeal to the Council by filing a notice of appeal with the City Clerk within 15 days of the serving or mailing of the determination of tax due. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator at his last known place of address. The findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

(`83 Code, § 3.44.090)

It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the city, which records the Tax Administrator shall have the right to inspect at all reasonable times.

(`83 Code, § 3.44.100)

(A) Grounds for refund. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this chapter, it may be refunded as provided in the following sections of this chapter, provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Tax Administrator within three years of the date of payment. The claim shall be on forms furnished by the Tax Administrator.

(B) Credits. An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Tax Administrator that the person from whom the tax has been collected was not a transient; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited or rent subsequently payable by the transient to the operator.

(C) Claims. A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the manner provided in division (A) of this section, but only when the tax was paid by the transient directly to the Tax Administrator, or when the transient having paid the tax to the operator establishes to the satisfaction of the Tax Administrator that the transient has been unable to obtain a refund from the operator who collected the tax.

(D) Proof. No refund shall be paid under the provisions of this chapter unless the claimant establishes his or her right thereto by written records showing entitlement thereto.

(`83 Code, § 3.44.110)

Any tax required to be paid by any transient under the provisions of this section shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount.

(`83 Code, § 3.44.120)

No person shall fail or refuse to register as required by this chapter, or to furnish any return required to be made by this chapter, or fail or refuse to furnish a supplemental return or other data required by the Tax Administrator. No person required to make, render, sign or verify any report, return or claim shall make any false or fraudulent report, return or claim with intent to defeat or evade the determination required by this chapter to be made of any amount due. No person shall fail or refuse to pay any sum required by this chapter to be paid.

(`83 Code, § 3.44.130)