Every STR operator in Chico must register with the city Finance Department for a Transient Occupancy Tax certificate and obtain a business license (renewed annually) before accepting bookings. TOT is collected at 10% of rent for stays of 30 days or fewer per CMC Chapter 3.52.
Chico Municipal Code Chapter 3.52 imposes a 10% TOT on the rent charged by hotel operators, with STRs included in the definition of 'hotel' after the 2018 council amendment. Operators must obtain a TOT certificate from the Finance Department, file periodic remittance returns, and provide proof of TOT registration during the administrative permit application. The city business license is renewed annually. TOT applies to the first 30 days of every stay regardless of any long-term agreement; long-term occupancy exemption begins on the 31st consecutive day.
Late filing penalty starts at 10% of TOT due, escalates to 25% on continued delinquency, and caps at 50%, plus 1% monthly interest. Operating without registration is a Chapter 3.52 violation and can result in revocation of the administrative permit.
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