Overview: Are short-term rentals allowed in Chico, CA?

• City of Chico: The City is in the process of finalizing a comprehensive Short‑Term Rental Ordinance to formally authorize STRs under city rules. Until the ordinance is adopted, the safest practice is to assume STRs are not yet permitted by right inside city limits and to verify zoning and any interim authorization directly with the City of Chico Planning Division and Finance Department before acquiring or listing a property.
• Unincorporated Butte County: Yes—STRs are allowed in the unincorporated areas of Butte County (outside Chico, Oroville, Paradise, Biggs, and Gridley) subject to an Administrative Permit, compliance with the County’s Short‑Term Rental Ordinance (Ordinance 4159), and payment of Transient Occupancy Tax (TOT).
• Operating without required city permits or without a county permit can result in administrative enforcement and tax penalties. Always confirm jurisdiction and current rules before listing.

How to start a short‑term rental business in Chico (City of Chico) — step‑by‑step

1. Verify zoning and jurisdiction

• Contact the Planning Division to confirm the subject property is within Chico city limits and whether STRs are authorized under the current zoning or pending ordinance.
  • Planning Division: 530‑879‑6800
• If the property is outside city limits, follow Butte County’s process below.

2. Secure business licensing and TOT registration (as applicable)

• City of Chico Business License (Finance Department)
  • Phone: 530‑879‑7320
• Transient Occupancy Tax (TOT) registration and certificate
  • TOT phone line (Chico): 530‑767‑1017
  • City TOT appears to be set at 10% of gross room receipts for stays of 30 days or less. Collect and remit monthly.

3. City STR permit (upon ordinance adoption)

• The City is developing a permitting system. Once adopted, the Finance and/or Planning Division will likely administer the application process. Monitor the City’s Planning and Finance pages and use the contacts above for the latest procedures.

4. Local property manager and guest operations

• The City’s ordinance is expected to require a local property manager with 24/7 availability. Align internal operations (check‑in, response protocols, guest rules) to meet expected standards.

5. Safety and building compliance

• Comply with California Building Code life safety standards (smoke/CO detectors, extinguishers, egress, etc.). Contact the Building Division for inspection requirements.
  • Building Division: 530‑879‑6700

6. Taxes and remittance

• File and remit Chico TOT monthly (generally by the 20th of the month following rental activity).
• State and federal income taxes apply to net rental income; track all income and deductible expenses.

How to start an STR in unincorporated Butte County (outside Chico city limits) — step‑by‑step

1. Verify zoning and site eligibility

• Ensure the property is outside any incorporated city boundary and not located within the Very Low Density Country Residential (VLDCR) zone (STRs are prohibited in VLDCR).
• Confirm “R” occupancy suitability and that the unit meets current California Building Code standards.
• Contact Planning Division to verify zoning compliance: 530‑552‑3701 or email through the Butte County Planning contact page.

2. Confirm building permit and occupancy

• STRs cannot occur in RVs, yurts, tents, or similar structures.
• Units built before 1962 may require Assessor field notes; for all others, ensure a valid building permit exists unless the county otherwise approves.
• Contact the Building Division: 530‑552‑3700 (building permit status and code compliance).

3. Owner residency and identification

• Most cases require proof the owner lives on the property (two forms of ID, e.g., driver’s license and utility bill).

4. Secure the STR Administrative Permit (Butte County)

• Application: Butte County Department of Development Services — STR Administrative Permit (online portal).
• Fee: Indicative first‑year fee reported as $187.44; renewals are lower (verify current fee schedule).
• Processing time: Typically 2–3 weeks. No refunds if your application is invalidated due to zoning, building status, or owner residency issues.

5. Designate a local property manager

• A local property manager (or owner for hosted stays) must be available 24 hours per day during all rental periods and able to respond within 30 minutes to neighbor complaints.

6. File and remit Transient Occupancy Tax (TOT)

• County TOT: 6% of gross rental receipts for stays of 30 days or less in unincorporated areas.
• Collect TOT from guests and remit monthly to the Butte County Treasurer‑Tax Collector.

7. Maintain compliance with performance standards

• Noise control, parking, occupancy limits, safety equipment, and on‑call management are enforced. Violations can lead to penalties, permit suspension, or revocation.

Required documents, permits, licenses, and guidelines City of Chico (interim/final)

• Business License (City of Chico Finance)
• Transient Occupancy Tax registration/certificate and monthly remittance
• STR Administrative Permit (once City ordinance is adopted and permitting system is live)
• Proof of ownership
• Local property manager designation (name, phone, 24/7 availability)
• Liability insurance meeting City standards (confirm minimums)
• Life‑safety documentation (smoke/CO detectors, fire extinguisher, address visibility, egress)
• Parking plan for on‑site parking
• Guest records (occupancy logs) for tax and compliance reporting

Butte County (unincorporated)

• STR Administrative Permit (county)
• Building permit confirmation and R‑occupancy compliance
• Owner residency proof (two forms of ID)
• Local property manager designation and 24/7 coverage
• Liability insurance as required by the county
• Life‑safety documentation consistent with CBC
• TOT registration and monthly remittance (6% in county)

Specific regulations by jurisdiction and level Chico City — City-level regulations

• STR status: STRs are not yet recognized under current zoning; the City is preparing an ordinance. Treat STRs as not permitted until you receive written confirmation from the City that a specific property may operate under the new rules.
• Business License: Required to operate; Finance Department oversees licensing.
• Transient Occupancy Tax (TOT): City TOT applies to stays ≤30 days; rate appears to be 10%. Monthly remittance required.
• Local property manager: Anticipated requirement in final ordinance (24/7 availability; 30‑minute response).
• Safety/building: Comply with California Building Code; coordinate with Building Division for inspections.
• Complaints and enforcement: The City’s Code Enforcement and Finance Department will likely handle complaints and TOT compliance (monitor city sites for enforcement process details).
• Contact for City:
  • Planning Division: 530‑879‑6800
  • Finance/Business Licenses/TOT: 530‑879‑7320
  • Building Division: 530‑879‑6700
  • TOT phone line (Chico): 530‑767‑1017

Butte County — County-level regulations (unincorporated areas)

• STR allowed: Yes, by Administrative Permit (Ordinance 4159; effective April 25, 2019).
• Zoning prohibition: Not permitted in the Very Low Density Country Residential (VLDCR) zone.
• Building/occupancy: Must meet current California Building Code and “R” occupancy; no RVs, yurts, tents.
• Owner residency: Typically required; two forms of ID (driver’s license + utility bill).
• Local property manager: Required 24/7 availability; response within 30 minutes to complaints.
• Performance standards: Noise, parking, occupancy limits, and safety equipment must be maintained.
• TOT: 6% of gross rental receipts; remitted monthly to the County Treasurer‑Tax Collector.
• Complaint hotline: 530‑250‑4118 (24/7).
• Contacts:
  • Development Services (Planning): 530‑552‑3701
  • Building Division: 530‑552‑3700
  • STR portal and application: see Source links (Butte County STR page)
  • Treasurer‑Tax Collector (TOT): see County TOT information and Municode reference

California — State-level regulations

• State tax: Net rental income is subject to California personal income tax; federal income tax also applies.
• Platform reporting: Short‑term rental platforms (e.g., Airbnb, VRBO) may have tax-reporting and collection obligations. Property owners remain ultimately responsible for ensuring proper collection and remittance.
• Building and fire codes: All STR units must comply with current California Building Code and applicable fire/life safety requirements.
• Municipal authority: Cities and counties retain authority to adopt and enforce STR regulations (zoning, permitting, taxes, enforcement).

Contact information (official) City of Chico (inside city limits)

• Planning Division
  • Phone: 530‑879‑6800
  • Address: 411 Main Street, 2nd Floor, Chico, CA 95928
  • Website: see City of Chico Planning Division in Sources
• Finance Department (Business Licenses and TOT)
  • Phone: 530‑879‑7320
  • TOT phone line: 530‑767‑1017
  • Address: 411 Main Street, 1st Floor, Chico, CA 95928
  • Website: see City Property/Tax Information in Sources
• Building Division
  • Phone: 530‑879‑6700
  • Email: buildingdocs@chicoca.gov
  • Website: see Building Division in Sources

Butte County (unincorporated areas)

• Department of Development Services (Planning/STR)
  • Phone: 530‑552‑3701
  • Address: 25 County Center Drive, Oroville, CA 95965
  • Website: see Butte County STR Ordinance page
• Building Division
  • Phone: 530‑552‑3700
  • Email: building@buttecounty.net
• STR Complaint Hotline (24/7)
  • Phone: 530‑250‑4118

Links to source pages (for verification and updates)

• Butte County — Short‑Term Rental Ordinance (overview and links): www.buttecounty.net/409/Short-Term-Rental-Ordinance
• Butte County — STR Administrative Permit application: www.buttecounty.net/417/Apply-for-STR-Administrative-Permit
• Butte County — Adopted STR Ordinance background and documents: www.buttecounty.net/420/Short-Term-Rentals-Ordinance
• Butte County Code of Ordinances (TOT and ordinances): library.municode.com/ca/butte_county/codes/code_of_ordinances?nodeId=CH23AUNTROCTA#TOPTITLE
• Butte County Zoning Ordinance — STR section (24‑172.1): online.encodeplus.com/regs/buttecounty-ca/doc-viewer.aspx?secid=211
• City of Chico — Finance/Business Licenses/TOT/Contact info (Finance page): chicoca.gov/Departments/Finance/City-Property-Information/
• City of Chico — Building Division: chicoca.gov/City-Services/Building-Division/index.html
• City of Chico — Municipal Code (for TOT and ordinances): codelibrary.amlegal.com/codes/chico/latest/overview
• City of Chico — Planning Division: chicoca.gov/Departments/Community-Development/Planning-Division/index.html

Practical investor checklist

• Confirm jurisdiction: Is the property inside Chico city limits or in unincorporated Butte County?
• Confirm zoning: No STRs in county VLDCR; verify city zoning and pending ordinance status before purchase.
• Secure permits: City business license and TOT (and City STR permit once adopted); county STR Administrative Permit for unincorporated properties.
• Build compliance: Verify current building permits and R‑occupancy; install and document safety equipment.
• Operations: Designate and train a local property manager; implement house rules and noise/parking controls.
• Taxes: Set up monthly TOT remittance (10% City; 6% County) and maintain detailed financial records for state and federal filings.
• Neighbor relations: Provide manager contact to neighbors; respond to complaints within 30 minutes; document resolutions.

Notes

• The City of Chico’s STR ordinance is in development; procedures and forms may change upon adoption. Confirm with the City prior to acquisition or listing.
• Butte County cannot process STR permits located within Chico (or other incorporated cities). If uncertain about jurisdiction, contact the County Planning Division for guidance.