Bulletin - Monterey Park, CA News Today
Monterey Park, CA: Ballot measure would lift the guest tax on short-term rentals from 13% to 16% and on hotels from 13% to 14%
Monterey Park Voters to Decide on 16% Short-Term Rental Tax in Measure AAA
Ballot measure would lift the guest tax on short-term rentals from 13% to 16% and on hotels from 13% to 14%
Photo by Kellen Riggin on Unsplash
Monterey Park voters will decide on November 3, 2026 whether to raise the city's transient occupancy tax on short-term rental stays. The city estimates the measure would bring in about $600,000 in additional annual revenue. Short-term rental hosts and managers would be collecting a higher tax from guests if it passes.
On July 1st, the council approved the resolution to put Measure AAA on the November 3 ballot. View full meeting here.
What Measure AAA Changes
The City Council voted on July 1 to place the measure on the November 3 ballot, where it would amend the city's existing transient occupancy tax commonly called the hotel tax. The tax applies to stays of 30 consecutive days or less. It covers short-term rentals as well as hotels and motels and lodging operators collect it from guests and remit it to the city. Today, both categories share a 13% rate. Under the measure, the standard rate would rise by one point to 14%. Short-term rental rate would rise by three points to 16%, which puts rentals two points above hotels.
Government Websites by CivicPlus®
Check Monterey Park, CA's current regulations on short-term rentals here.
View Ballot Measure AAA Informational Presentation Webinar here
Key Numbers
The city expects the hotel and motel increase to raise about $400,000 a year and the short-term rental increase about $200,000 which totals to $600,000 total. The existing 13% tax is projected to generate about $4.5 million in fiscal year 2026-27 and the 13% rate was itself the subject of a 2024 ballot measure that proposed raising it from 12%. The measure is one of seven hotel tax proposals from Los Angeles County cities. The city lists Pasadena at 17%, Diamond Bar at 14%, and Rosemead at 10% for comparison.
FAQs and other information about Measure AAA is available on Monterey Park, CA's official website | Source: https://www.montereypark.ca.gov/
Why Rentals Pay More
The city says it has seen consistent compliance and code enforcement problems with short-term rentals. As they sit in residential neighborhoods, they generate more calls for service. It has said that the higher rate is intended to pay for additional compliance services tied to those impacts.
Government Websites by CivicPlus®
Government Websites by CivicPlus®
How the Money Could Be Used
Measure AAA is a general tax so revenue goes to the General Fund. It can also be used for any municipal purpose through the annual budget. The ballot question cites the maintenance of several city services like fire, police, 911 response; safe and clean public areas; prevention of property crimes and human trafficking; and repair of streets and potholes. It requires audits and spending disclosure as well. The tax would continue until ended by voters.
Critics in the wider county debate argue that higher hotel taxes raise lodging costs and can discourage visitors. If it gets a majority of "yes" votes on November 3rd, the city will notify operators of its effective date and administrative requirements.
(1 of 5) 🙋🏻♀️Why put Measure AAA on the ballot? pic.twitter.com/gBhxpU2eSG
— City of Monterey Park (@cityofmpk) September 24, 2026
⦾ Measure: AAA, a general tax amending the city's transient occupancy tax
⦾ Short-term rental rate: 13% to 16%
⦾ Hotel and motel rate: 13% to 14%
⦾ Applies to: stays of 30 consecutive days or less
⦾ Estimated new revenue: about $600,000 a year ($200,000 from short-term rentals)
⦾ Election date: November 3, 2026
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