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(SANTA BARBARA, Calif.) –The County of Santa Barbara is providing guidance for short-term rental and homestay owners to ensure compliance with local short-term rental and homestay regulations as well as Transient Occupancy Tax and Tourism Business Improvement District obligations.
A short-term rental involves renting a residential property to guests for a period of 30 consecutive days or less. A homestay is a similar arrangement where the property owner or long-term tenant resides on-site during the guest’s stay. Both require adherence to specific County regulations. It is illegal to advertise and/or rent property in the Inland Area of the County on a short-term basis (30 consecutive days or less) without first having obtained a short-term rental or homestay permit. While short-term rentals and homestays are currently unregulated in the Coastal Zone, owners and operators throughout all areas of the County (Coastal and Inland) must still comply with the County’s Transient Occupancy Tax regulations should they choose to operate a short-term rental or homestay. If the property is in a local cities’ jurisdiction you will want to make sure you are following their regulations. You can check your property’s address on our Santa Barbara County Land Use and Zoning map to see if you are in the unincorporated county or in a local cities’ jurisdiction.
Steps to Obtain a Short-Term Rental or Homestay Permit
- Determine Property Zoning: Begin by identifying your property’s zoning designation, as it dictates whether you can operate a short-term rental or homestay in the county. Short-term rentals are permitted in most commercial zones while homestays are permitted in residential zones and some other zones. The list of zones is available here: Short-Term Rental Ordinance | Santa Barbara County, CA – Official Website
- Apply for a Planning Permit: Detailed instructions and necessary forms are available on the County Planning & Development Department’s Planning and Building Permit Applications and Forms webpage. Click on “How to Submit Online for a Planning Permit” and be sure to indicate in the project description whether you are applying for a short-term rental or a homestay.
- Review and Approval: The County will review your application to ensure compliance with local ordinances. Upon approval, you will receive the necessary permits to operate your short-term rental or homestay.
Transient Occupancy Tax (TOT) Obligations
Operators of short-term rentals and homestays are required to obtain a Transient Occupancy Registration Certificate and collect a 14% Transient Occupancy Tax from guests. Transient Occupancy Taxes | Santa Barbara County, CA – Official Website
Steps to Comply with Transient Occupancy Tax (TOT) Requirements
- Obtain a Transient Occupancy Registration Certificate: Within 30 days of commencing business, secure this certificate from the Treasurer-Tax Collector’s office. TOT Application for Certificate Registration
- Collect TOT from Guests: Include the 14% TOT in the amount charged to guests.
- Remit Collected Taxes: Remit the TOT collected to the County monthly, as specified by the Treasurer-Tax Collector’s guidelines.
Tourism Business Improvement District (TBID) Obligations
Owners of short-term rentals and homestays located in the South County are required to pay a TBID assessment based on their monthly rental income. This assessment is levied upon and a direct obligation of the lodging business owner. This amount is to be remitted to the County monthly along with the related TOT collections. See Tourism Business Improvement Districts (TBID) | Santa Barbara County, CA – Official Website
Additional Resources
Short-Term Rental and Homestay Permit Information from Planning and Development: Short-Term Rental Ordinance | Santa Barbara County, CA – Official Website
TOT Information from Treasurer-Tax Collector: Transient Occupancy Taxes | Santa Barbara County, CA – Official Website
Chapter 32 – Taxation, Article II. Transients | Santa Barbara County, CA – Official Website
TBID Information from Treasurer-Tax Collector: Tourism Business Improvement Districts (TBID) | Santa Barbara County, CA – Official Website
