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Visitor Accommodation Facilities (VAF)

Taxes and Assessments


Contact Finance

City of Monterey
Finance Department

735 Pacific Street, Suite A
Monterey, CA 93940
Fax: (831) 655-0562
email


Administration
(831) 646-3940

Accounts Payable
(831) 646-3943

Payroll
(831) 646-3942

Revenue – Accounts Receivable, Pet Licenses, Business Licenses
(831) 646-3944

Jimmy E. Forbis
Finance Director
email

Julie Porter
Assistant Finance Director
email

This page replaces the City of Monterey's Transient Occupancy Tax Information page, and provides additional resources for owners and operators of visitor accommodation facilities (VAF) located in the city of Monterey.

Visitor Accommodation Facility (as defined by Chapter 35, Article 3, Section 35-10 of City code): Any building, portion of any building, or group of buildings in which there are guest rooms or suites, including housekeeping units for transient guests, where lodging with or without meals is provided. This definition excludes Vacation Time-Share Facilities.

All VAF operators in the City are required to file a TOT return and pay the 10% of rent due on a bi-monthly basis pursuant to City of Monterey "Transient Occupancy Tax Ordinance" (No. 1405 C.S.)

Monterey City Code: Chapter 35, Article 3 Uniform Transient Occupancy Tax
Once in the City Code, click on the bar at the left to read specific sections of the ordinance. The sections begin at 35-10 Definitions and end at 35-22 Violations.
The Monterey County Tourism Improvement District (MCTID) was established in 2007. The proceeds from the MCTID assessment are used to administer marketing programs to promote the County of Monterey as a tourism destination and to fund projects, programs and activities that benefit lodging businesses within the district.

The assessment levied on all lodging businesses within the city of Monterey is $2.00 per occupied room night for full service VAF and $1.00 per occupied night for limited service VAF.

All of the assessments imposed are reviewed by City Council annually, based on the annual reports prepared by the Monterey County Convention and Visitors Bureau. The City is entitled to retain one percent (1%) of the assessments collected to defer the administrative costs incurred.

Reference: Chapter 18, Article 4 of the City code.
Once in the City Code, click on the bar at the left to read specific sections of the ordinance. The sections begin at 18-41 Authority and end at 18-54 Administrative Fee.
In February 2014, VAF owners voted to authorize City Council to levy a special tax and to issue debt to finance the rehabilitation and upgrade of the Monterey Conference Center (MCC). As established in the Rate and Method of Apportionment (the "RMA"), the special tax goes into effect July 1, 2014.

Type

Summary

Rate

Adjacent Hotel Hotel property within 100' of MCC (currently, three hotels) 4.15% of all rent
Full Service Hotel Lodging with food & beverage as defined by Smith Travel Research 1.60% of all rent
Limited Service Hotel Neither adjacent nor full service 0.80% of all rent
Learn more about the CCFD:


Filing Your Return
The VAF Return formExcel document in Excel or the VAF Return FormAdobe PDF in PDF can be used by VAF operators. Note that we are not currently accepting electronic filing of tax returns. The return must be mailed to or filed at the City of Monterey Finance Department, accompanied by remittance for taxes due, on or before the last day of each odd numbered month.* The mailing address is in the left hand column.

Period

Timeframe

Due by

1 July 1 - August 31 September 30
2 September 1 - October 31 November 30
3 November 1 - December 31 January 31
4 January 1 - February 28 (or 29) March 31
5 March 1 - April 30 May 31
6 May 1 - June 30 July 31
In the event that the due date falls on Saturday, Sunday or a holiday which causes the City offices to be closed, the due date will become the first working day following the Saturday, Sunday or holiday. Failure of City to provide a return form does not excuse operator from the obligation to timely remit the tax.
* A penalty of 10% shall be added to the taxes not paid within the required time. After 60 days an additional 10% of the amount of the tax shall be assessed. Interest shall also be added at the rate of 1% per month, or fraction thereof, on the tax from the date on which the remittance first became delinquent until paid.