The City of Capitola requires all short-term rental operators to obtain an annual Short-Term Rental Permit for their primary residence. Non-hosted rentals are capped at 100 nights per year and are subject to a city-wide limit of 125 permits, while hosted rentals have no night limit. A 14% Transient Occupancy Tax (TOT) applies, and operators must file quarterly returns even if a platform remits the tax.
To host an Airbnb in Capitola, you must get a city permit for your primary residence only; you cannot rent out a second home, ADU, or investment property. If you don't live there during the rental (non-hosted), you're limited to 100 nights per year. Be aware there's a city-wide cap on non-hosted permits, so you might end up on a waitlist. You'll need to pass a safety inspection, get $500,000 in liability insurance, and post your permit number on your listing. Even though platforms like Airbnb collect the 14% city tax, you are still required to register with the city and file your own quarterly tax returns.
Permit Required
Yes
Night Limit
100/year
Primary Residence
Required
Total Tax Rate
14.0%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
Learn more about STR regulations and hosting tips.
Regulations Videos
Permit Fee
$400
Processing Time
4-6 weeks
Expert advice on STR compliance