Overview

Short-term rentals are allowed in Morgan Hill, CA. The city permits STR operations subject to compliance with local regulations, including registration requirements and tax obligations. Hosts must register with the city and collect applicable transient occupancy taxes from guests.

How to Start a Short-Term Rental Business in Morgan Hill

Step 1: Understand the Regulatory Framework

Morgan Hill operates under California's state-level STR regulations with additional local requirements. The city has established a registration system for short-term rental operators through its Finance Department.

Step 2: Property Eligibility and Compliance

Before operating, ensure your property:

• Meets all zoning requirements for residential use
• Complies with local housing standards
• Is suitable for transient occupancy (typically stays under 30 days)

Step 3: Register Your Business

Complete the Transient Occupancy Tax Registration Form and submit it to the Finance Department. This registration is mandatory before beginning operations.

Step 4: Tax Collection Setup

Implement systems to collect and remit:

• 11% Transient Occupancy Tax (TOT) on all stays 30 nights or shorter
• 1.5% Tourism Business Improvement District Assessment (TBID) on stays 29 nights or shorter

Required Documents, Permits, Licenses, and Guidelines

Required Registration Form

Transient Occupancy Tax Registration Form must include:

Operator Information:

• Name of Operator
• DBA (Doing Business As) if applicable
• Mailing Address (City, State, Zip/Postal Code, Country)
• Phone, Cell, Fax, Email

Property Information:

• Property Address
• City, Zip/Postal Code
• Assessor's Parcel Number
• Length of time property has been used as short-term rental
• VRBO/HomeAway listing numbers or other platform identifiers

Owner Information (if different from Operator):

• Owner name and contact details
• Relationship to operator

Submission Requirements

• Form can be submitted by email to: Treasury@morganhill.ca.gov
• Hard copy submissions accepted at: City of Morgan Hill, Finance Department, 17575 Peak Avenue, Morgan Hill, CA 95037

Compliance Agreement

All applicants must agree to comply with "the requirements of the City of Morgan Hill Transient Occupancy Tax Ordinance Chapter 3.24"

Specific Regulations

Tax Obligations

Transient Occupancy Tax (TOT):

• Rate: 11% of the listing price including cleaning fees
• Applies to: Reservations 30 nights and shorter
• Collection: Required from guests

Tourism Business Improvement District Assessment (TBID):

• Rate: 1.5% of the listing price including cleaning fees
• Applies to: Reservations 29 nights and shorter
• Collection: Additional mandatory assessment

Operational Requirements

• Registration Mandatory: All STR operators must register with the Finance Department before commencing operations
• Ongoing Compliance: Must maintain compliance with Transient Occupancy Tax Ordinance Chapter 3.24
• Platform Compliance: Operators using platforms like VRBO, HomeAway, or others must provide platform identifiers

State-Level Context

As with all California jurisdictions, Morgan Hill operators must also consider:

• State tax implications
• Fair housing compliance
• ADA requirements for accessibility
• Local zoning restrictions that may apply

Contact Information

Primary Contact - Finance Department

Mailing Address: City of Morgan Hill Finance Department
17575 Peak Avenue
Morgan Hill, CA 95037

Email: Treasury@morganhill.ca.gov

Phone: (408) 779-7271 (main city line)

City Government Contact

Main City Office: Phone: (408) 779-7271
Website: www.morganhill.ca.gov

Source References

1. Transient Occupancy Tax Registration Form: www.morganhill.ca.gov/DocumentCenter/View/22736
2. Airbnb Tax Collection Information for Morgan Hill: www.airbnb.com/help/article/2297
3. City Tax Information: www.morganhill.ca.gov/1311/Transient-Occupancy-Tax-and-TBID

Note: This guide is based on available information from the provided sources. For the most current regulations and requirements, always consult directly with the Morgan Hill Finance Department or visit the city's official website. Regulations may change, and this analysis should not be considered legal advice.