October 2024
Disclaimer. This page is intended solely to assist you in understanding the regulations you may need to comply with. The information provided here is not exhaustive and may not reflect the most current legal standards. It is your responsibility to ensure compliance with applicable laws. For further guidance, please contact your local tax authorities or consult with a qualified legal or tax professional.
In October 2017, the City’s Residential STR Ordinance entered into effect to regulate the short-term rental industry. Please also consult the Santa Cruz Municipal Code (SCMC) as other provisions may apply to your hosting activity. Please visit the Short Term Rental page on the Santa Cruz website.
Transient Occupancy Tax (TOT)
Guests staying in short-term rentals (rentals of less than 31 days) must pay a transient occupancy tax (TOT). You must collect it from their Guests, then report and remit it to the City on a quarterly basis. A TOT registration certificate is issued by the Santa Cruz’s Finance Department upon registration. More information about TOT on this official page.
You remain responsible for registering for, collecting and/or remitting any other taxes applicable to their hosting activity.
STR types
According to the Santa Cruz STR Ordinance, a short-term rental is the tourist rental of a residential property for 30 consecutive days or less.
The STR Ordinance in Santa Cruz defines 2 types of short-term rental occupancy:
- Hosted STR. STRs in the presence of the Host during Guest's stay.
- Non-hosted STR. STRs in the absence of the Host during Guest's stay.
STR Permit
In Santa Cruz, it is mandatory to obtain a permit to operate an STR.
- Online process. The application process can be done online here. More information about the process here.
- TOT Certificate. Please note you must obtain a Transient Occupancy Registration Certificate (see online application here) before applying for a permit.
You must add the permit number to your misterb&b listing(s) (go to the “Local Requirements” page, via “Edit my listing”). In the absence of a valid permit number, misterb&b may delete your listing.
STR conditions
- Owned primary residence. You can only operate an STR in the property you owned and which serve as your primary residence (where you live more than 6 months per year.
- Non-hosted STR non permitted. The City will not deliver permits to new Non-Hosted STRs. It means that you cannot host Guests without being present at the property.
Maintaining compliance
You must ensure they comply with State and local laws and regulations, including, without limitation, Santa Cruz codes on building, electrical, plumbing, fire, health, housing, police, or planning.
Third-party rules
You must abide by other contracts or rules binding you, such as co-op rules, CC&Rs, HOA rules, or other rules established by tenant organizations.