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  1. Home
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  5. California
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  7. Chico

Chico

Moderate
California · City of ChicoUpdated Apr 7, 2026
Gold-standard verification1% sourced

Cross-referenced against 4 official sources — municipal codes, planning-department pages, and government registries.

Verified Feb 4, 2026Sources 4

Summary

Plain-english overview

Short-term rentals in Chico are currently regulated as 'hotels' under the municipal tax code, requiring a city business license and registration for transient occupancy taxes.

Restriction level

Severity 8
Classification
Moderate
8
Severity

Why this classification

  • Permit required
  • Reporting required
  • No night cap
  • No primary residence requirement

In plain English

What this means for you

You must obtain a standard city business license and register with the city's tax administrator (HdL) to collect and pay monthly occupancy taxes. While a specific land-use ordinance for short-term rentals has been in development, there are currently few restrictions on guest counts or zones, though rentals are strictly prohibited in properties built or split under state SB-9 laws.

At a glance

Key numbers
Permit requiredNo
Night limitNone
Primary residenceNot required
Total tax rate0.1%
Permit fee$22

4 things hosts often miss

Common compliance gaps
  1. 1Airbnb and VRBO do NOT collect the 2% TBID assessment; hosts must collect and remit this manually.
  2. 2Short-term rentals are strictly prohibited in units created via SB-9 lot splits or duplex conversions.
  3. 3The TBID assessment rate is scheduled to increase from 2% to 2.5% on September 1, 2025.
  4. 4TOT returns must be filed monthly even if no revenue was generated.

Regulation details

Sourced from official code
Eligibility4 rules
  • Chico does NOT require the property to be a primary residence. Investment properties are allowed.
  • Chico allows STRs in the following property types: Single Family, Condo, Apartment, Guest House.
  • Chico prohibits STRs in the following property types: SB-9 Units, Yurts, Tents, RVs.
  • Chico: Short-term rentals are strictly prohibited in units created via SB-9 lot splits or duplex conversions.
Requirements8 rules
  • Chico STR warning: The TBID assessment rate is scheduled to increase from 2% to 2.5% on September 1, 2025.
  • Chico does not require STR registration.
  • Chico: Hosts must report their rental activity periodically to the city, even if platforms collect taxes.
  • Chico STR warning: Airbnb and VRBO do NOT collect the 2% TBID assessment; hosts must collect and remit this manually.
Application process5 rules
  • Chico STR permit - Step 3: Register for TBID with Explore Butte County. Ensure your property is registered with the Tourism Business Improvement District for assessment collection. Required documents: TOT Certificate Number. Time: 1-2 days.
Fees & costs2 rules
  • Butte County charges a registration fee of $219.45.
  • Chico charges a registration fee of $22.
Taxes4 rules
  • Chico: TOT returns must be filed monthly even if no revenue was generated.
  • Butte County charges a Transient Occupancy Tax of 0.06%.
  • Chico charges a Transient Occupancy Tax of 0.1%.
  • Chico: Airbnb and VRBO do NOT collect the 2% TBID assessment; hosts must collect and remit this manually.
Safety requirements1 rule
  • Chico requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher.

How to get permitted

Step-by-step guide for Chico

0/3
steps completed
Step 1

Apply for City Business License

Complete the Flat Rate Tax Business License Application for a rental unit with 1-5 rooms.

1 week$22
Documents needed
  • Business Information
  • Property Address
Official resource
Step 2

Register for TOT Certificate

Register with HdL Software, LLC, the city's tax administrator, to obtain your Transient Occupancy Tax certificate.

3-5 daysFree
Documents needed
  • Business License Number
  • Owner Contact Info
Official resource
Step 3

Register for TBID with Explore Butte County

Ensure your property is registered with the Tourism Business Improvement District for assessment collection.

1-2 daysFree
Documents needed
  • TOT Certificate Number
Official resource

Frequently asked questions

5 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Researched & verified by Learn STR at GoStudioM

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