Short-term rental permit rules in Chico, CA — also called Airbnb permits, vacation rental licenses, or STR registration — list the application steps, fees, and operating requirements for hosting.
Chico requires STR operators to obtain (1) a city business license, (2) a TOT registration, and (3) an administrative permit from the Department of Development Services. The municipal code defines a 'hotel' to include short-term home-sharing and vacation rental units rented for under 31 days, per Chico Municipal Code Chapter 3.52 (TOT).
In April 2018 the Chico City Council amended the Chico Municipal Code to expressly classify short-term rentals (single-family dwellings or portions rented to transient guests for periods of 30 days or fewer) as hotels for tax purposes. Operators must register with the city for a TOT certificate and obtain a business license through the Finance Department before listing. An administrative permit through Development Services is also required, with performance criteria including occupancy caps (two guests per bedroom plus two additional guests), off-street parking based on unit size, and designation of a local property manager available 24/7. STRs within incorporated Chico are NOT processed through Butte County's STR permit system — Butte County explicitly excludes Chico, Oroville, Paradise, Biggs, and Gridley from its program (Butte County Code §24-172.1).
Operating without a business license or TOT registration is a code violation under CMC Chapter 3.52; failure to remit TOT incurs a 10% initial late penalty, an additional 15% for continued delinquency (up to 50% maximum), plus 1% per month interest. Operating without the administrative permit can trigger zoning enforcement under Title 19.
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