Chapter 3.16 — UNIFORM TRANSIENT OCCUPANCY TAX1

This chapter shall be known as the Uniform Transient Occupancy Tax Ordinance. (Ord. 2003-12 § 1 (part), 2003)

Except where the context otherwise requires, the definitions in this section shall govern the interpretation and construction of the terms of this chapter:

City Collector. The term “City Collector” shall mean the Administrative Services Director.

Hotel. The term “hotel” shall mean any structure, or any portion of any structure or the air space within any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes for periods of thirty (30) days or less. The term “hotel” includes any inn, residential dwelling unit, motel, group residential or lodging house, bed and breakfast inn, single-room occupancy hotel, hostel, rental unit, public or private residential club, mobile home, time-share project, house trailer at a fixed location, or other structure or portion of a structure.

The term “hotel” shall also include a space, campsite or similar facility which is occupied, or intended or designed for occupancy, by a recreational vehicle, camper, van, trailer, motor home or similar vehicle used, or intended for use, as a dwelling, lodging or for sleeping purposes.

Including. The term “including” shall mean “including, without limitation” and “including, but not limited to” and shall not be interpreted to imply any limitation on the more general preceding provision unless otherwise expressly stated.

Individual. The term “individual” shall mean any natural person.

Occupancy. The term “occupancy” shall mean the use or possession, or the right to use or possession, of a specific campsite, space, area, room or rooms in any hotel for the purpose of dwelling, lodging or sleeping.

Operator. The term “operator” shall mean the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-share project owner’s association or any other capacity. Where the operator performs the operator’s functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as the 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.

Qualifying Rental Agreement. The term “qualifying rental agreement” shall mean a written leasehold agreement signed by both the operator and transient obligating the transient to pay rent for use and possession of a room or space in a hotel for a period of not less than thirty-one (31) consecutive days. The qualifying rental agreement shall be legally enforceable by both the operator and transient and shall include in its terms both the right to occupy and the obligation to pay for a room or rooms for thirty-one (31) days or more. “Qualifying rental agreement” expressly excludes:

1. Prior history: Ords. 1101, 1215, 1255 1448, 83-26, 84-12, 93-12 and 94-6; 1949 Code §§ 6900—6913.

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City of Newport Beach, CA § 3.16.020 REVENUE AND FINANCE § 3.16.040

A. Any agreement, regardless of the rental term, which is terminated for any reason, by either party, or by mutual consent, prior to the thirty-first consecutive day of occupancy; or

B. Any agreement that would be unlawful or constitute a violation of law.

Rent. The term “rent” shall mean 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, credits, and property and services of any kind or nature, without any deduction. Rent shall include the consideration charged by an operator for accommodations, including any (A) unrefunded advance rental deposits or (B) separate charges levied for items or services which are part of such accommodations including, but not limited to, furniture, fixtures, appliances, linens, towels, non-coin-operated safes, utilities (such as energy surcharges) and maid service.

Time-Share Interest. The term “time-share interest” shall mean either a time-share estate or a time-share use (as those terms are defined in California Business and Professions Code Section 11212) and any similar form of ownership involving a right in perpetuity, for life, or for a term of years, to occupy any room, space or area in a time-share project.

Time-Share Owner. The term “time-share owner” shall mean any person or entity that owns a time-share interest.

Time-Share Project. The term “time-share project” shall mean a structure or real property (including air space) in which a time-share interest has been sold.

Transient. The term “transient” shall mean any individual who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) consecutive days or less, counting portions of days as full days. Any individual occupying space in a hotel shall be deemed to be a transient until the period of thirty (30) days has expired, and the tax imposed by this chapter shall be due upon all rent collected or accruing prior to the thirty-first consecutive day of occupancy unless occupancy extends to the thirty-first day or thereafter. The term “transient” shall not include any person who occupies any room, space or area in a time-share project pursuant to a time-share interest and without paying rent including: (A) a time-share owner; (B) a member of the family or guest of the time- share owner; (C) any person who is entitled to occupancy pursuant to any time-share exchange program, or any similar program; and (D) any person entitled to occupancy pursuant to any exchange or incentive program involving or sponsored by the operator of the time-share project. (Ord. 2003-12 § 1 (part), 2003; Ord. 2012-18 § 1, 2012; Ord. 2023-22 § 95, 2023; Ord. 2025-37, 1/13/2026)

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of 9% of the rent charged by the operator. The 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 at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due when the transient ceases to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Administrative Services Director may require that such tax shall be paid directly to the Administrative Services Director. (Ord. 2003-12 § 1 (part), 2003; Ord. 2012-18 § 2, 2012; Ord. 2025-37, 1/13/2026)

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City of Newport Beach, CA § 3.16.040 NEWPORT BEACH CODE § 3.16.050

No tax shall be imposed upon:

A. Any person as to whom, or any occupancy as to which, it is beyond the power of the City
to impose the tax specified in this chapter, and only when in the performance of official
duties thereof;

B. Any officer or employee of a foreign government who is exempt by reason of express
provision of Federal law or international treaty;

C. A transient occupying a hotel pursuant to a qualifying rental agreement entered into prior
to the first day of occupancy;

D. An employee of an airline company who is occupying a hotel room in the course of his or
her employment, but only when the room is rented by the airline employer pursuant to a
qualifying rental agreement that has been preapproved by the Administrative Services
Director;

E. Any person or transient occupying a hotel room provided without rent charged
(complimentary) to the person or transient by the operator, including but not limited to:

1. Rooms provided to charitable organizations;

2. Rooms provided to meeting planners who may book future hotel rooms and provide
business and conferencing opportunities for the economic benefit of the City;

3. Rooms provided to displeased guests; and/or

4. Rooms provided to hotel employees;

F. No exemption shall be granted except pursuant to an application filed when the rent is
collected and under penalty of perjury upon a form prescribed by the Administrative
Services Director. It is the transient's responsibility to provide necessary proof of the
exemption.
(Ord. 2003-12 § 1 (part), 2003; Ord. 2012-18 § 3, 2012; Ord. 2025-37, 1/13/2026)

A. Each operator 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. 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 hotel shall advertise or state in any manner, directly or indirectly, that all or a portion of the tax will be assumed, waived, absorbed or refunded by the operator.

B. Notwithstanding the provisions of subsection (A) of this section, the operator shall not be
required to separately state the rent and the tax on receipts and books of record, when room
accommodations constitute only a portion of a collective group of services, privileges,
entitlement or benefits (“benefits”) that include, at a minimum, room accommodations and
food and beverage services or room accommodations and at least one other benefit having
an ascertainable fair market value (“special package”) offered for one fixed charge
(“special package rate”), provided the operator complies with subsection (C) of this section.

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City of Newport Beach, CA § 3.16.050 REVENUE AND FINANCE § 3.16.050

C. 1. The operator shall file with the Administrative Services Director a statement of each
special package on a form ("special package application") provided by the
Administrative Services Director. The special package application shall detail the
benefits of the special package and an itemization of that portion of the special
package that is rent and tax and each of the benefits. The operator shall provide
written evidence to establish the claimed fair market value of each benefit other than
rent and tax. The Administrative Services Director shall mark the date of receipt on
the special package application and review the submitted information to determine if
sufficient information is provided to verify the value of the benefits, rent and tax. The
operator shall designate a specific name or number to the special package as part of
the special package application. The special package application shall not be accepted
unless accompanied by a fee for processing that has been established by resolution of
the City Council.

2. The name or number designated on the special package application shall appear on all
receipts and books of record whenever the special package is sold.

3. If the special package application is deemed incomplete, the Administrative Services Director will advise the operator of any required changes within 14 City business days. The operator must either make the required changes and resubmit the special package application or comply with subsection (A) of this section. 4. The Administrative Services Director shall approve, conditionally approve or disapprove the special package within 14 days of receipt of a complete special package application. In the event of disapproval the Administrative Services Director shall give the operator written notice of the reasons for disapproval. The effective date of the special package rate shall be the date on which the Administrative Services Director receives a complete special package application that is approved. A new special package application shall be submitted whenever the operator changes the rent or benefits of any previously approved special package. D. The tax shall apply only to the amount of rent identified in the special package that has been approved by the Administrative Services Director. E. If an operator fails to comply with subsection (A) of this section and also fails to obtain approval of a special package rate pursuant to subsection (C) of this section, the tax (“imputed rate”) shall be the lesser of (1) the amount collected for the total special package or (2) an amount equal to the median average double occupancy room rate for the accommodations as posted in the room pursuant to the requirements of California Civil Code Section 1863. F. Notwithstanding subsections (C) and (D) of this section, if any audit reveals that the gross income to the operator attributable to the rent portion of special package (“audited rate”) is more than ten (10) percent greater than the rent specified in the special package rate, the rent for purposes of calculating the tax shall be the audited rate. In the event subsection (E) of this section applies and the audited rate is greater than the imputed rate, the rent for tax purposes shall be the audited rate. The audited rate shall be determined by an audit of a sample of the special packages sold by the operator within each special package category. The audited rate shall be the amount of the special package rate remaining after deducting the fair market value of each of the benefits included in the special package rate other than room accommodations and tax. Where more than one type of special package is offered

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City of Newport Beach, CA § 3.16.050 NEWPORT BEACH CODE § 3.16.070

within the audit period, each special package shall be audited separately for purposes of determining the applicable audited rate. Credits or offsets shall not be allowed between different special packages.

(Ord. 2003-12 § 1 (part), 2003; Ord. 2012-18 § 4, 2012; Ord. 2023-22 § 96, 2023; Ord. 2025-37, 1/13/2026)

Within 30 days after commencing business each operator of any hotel renting occupancy to transients shall register the hotel with the Administrative Services Director and obtain a "transient occupancy registration certificate" to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following:

A. The name of the operator;

B. The address of the hotel;

C. The date upon which the certificate was issued; and

D. The following statement:

Transient occupancy registration certificate signifies that the person named on the certificate has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance (Chapter