Short-Term Rental Regulations
in Capitola, CA

Vacation rentals are allowed only within the City of Capitola Vacation Rental Use (VRU) overlay district. Requirements include a business license, monthly Transient Occupancy Tax (TOT) reporting, parking compliance (onsite or valid permit), identifying a local responsible party, and displaying the permit number on all internet listings.

Yes, a permit is required to operate a short-term rental in Capitola. 1) Submit a Vacation Rental Permit Application and a Business License Application to the City of Capitola. 2) Planning staff will review for zoning and parking compliance while the Finance Department processes the business license. 3) Once issued, maintain the permit by renewing the business license annually and submitting monthly TOT reports.

1) Submit a Vacation Rental Permit Application and a Business License Application to the City of Capitola. 2) Planning staff will review for zoning and parking compliance while the Finance Department processes the business license. 3) Once issued, maintain the permit by renewing the business license annually and submitting monthly TOT reports.