Transient Occupancy Tax (TOT) - Residential

background

All homes or other structures that are rented or leased for a period of 30 days or less are required to obtain a permit from the City of Malibu and are subject to a transient occupancy tax (TOT) per Malibu Municipal Code Section 3.24.

As of April 2015, properties rented through Airbnb no longer have to collect and submit quarterly TOT tax returns to the City as Airbnb agreed to collect and remit the TOT on behalf of property owners who use its service. However, all property listed and rented through any other vacation rental service or made independently must collect and submit the required TOT and provide the required TOT tax returns for those rentals to the City.

Failure to register, collect, and remit TOT will subject property owners to prosecution for back taxes, penalties, and interest due.

new short-term rental permit program effective January 15, 2021

On September 29, 2020, the City Council adopted Ordinance No. 468 (Short-Term Rental Enforcement Ordinance) creating a new Short-Term Rental (STR) Permit system to regulate the short-term rental of residential property. 

Effective January 15, 2021, the short-term rental of residential property can only be conducted in accordance with a valid STR Rental Permit. Property owners wishing to apply for a STR Permit may either submit the application and pay by credit card online or mail in an application along with a check. The STR Permit Application Fee is $439. 

Online Application Submittal

The City offers an online application hosted by its STR administration consultant, Host Compliance. As part of the online application, property owners will need to:

• Provide proof of ownership by uploading a copy of their Grant Deed, and operating agreement if applicable, into the online application
• Print, sign, and initial the attestation page and upload it into the online application
• Mail the original signed and initialed attestation page to: the City of Malibu Short-Term Rental Permit Program (23825 Stuart Ranch Road, Malibu, CA 90265)
• Pay by credit card

Mail-In Application Submittal

To submit the application by mail, owners should complete the following:

• Enter information in the online Application Form 
• Print out the completed application, sign and initial as required
• Mail the application to the City of Malibu Short-Term Rental Permit Program (23825 Stuart Ranch Road, Malibu, CA 90265) along with the following:
  • Proof of ownership (a copy of the Grant Deed and, if applicable, a copy of the operating agreement) 
  • Check in the amount of $471 payable to the City of Malibu

For questions or assistance filling out your application, contact STRSupport@malibucity.org or call the City’s STR support line at 310-456-2489, ext. 381.

TRANSIENT OCCUPANCY TAX RATE INCREASE

As part of the General Municipal Election on Tuesday, November 3, 2020, Malibu voters were ask to vote on “Measure T” to decide whether the Transient Occupancy Tax paid by hotel and other lodging guest should be increased from 12% to 15%. Measure T required a majority of votes cast (50%+1) in order to pass. According to the certified results from Los Angeles County Registrar-Recorder/County Clerk, Measure T was approved by Malibu voters. 

On December 14, 2020, the City Council received the results of the November 3 General Election and adopted Resolution No. 20-63 certifying the County’s election results. Although the results of the election make the new TOT rate effective immediately, the City Council adopted Resolution No. 20-64 to set the effective date of the increase to be January 1, 2021. This was done to accommodate hotel, motel, and other lodging operators and hosting platforms to have sufficient time to increase the rate in their respective reservation systems. 

Prior bookings, for arrival on or after January 1, 2021, paid in full by December 31, 2020, will be exempt from the three percent (3%) tax increase

For questions regarding the City's Transient Occupancy Tax program, please contact the Finance Division at 310-456-2489.

Click the links below for additional information, including the forms required for registration of rental property and for remittance of the TOT.

HOSTED ORDINANCE (IN PROGRESS)

On November 23, 2020, the City Council adopted Ordinance No. 472 (Hosted STR Ordinance) to establish provisions to regulate short-term rental of property citywide which include, but are not limited to, requiring the presence of an onsite host during short-term rentals, primary residency requirements and multifamily restrictions. On November 5, Council conducted the first reading of the Hosted Ordinance and adopted Resolution No. 20-51, amending Local Coastal Program (LCP) Land Use Plan (LUP) Chapter 5 accordingly. See the November 23 staff report and November 5 staff report for more information on the Hosted STR Ordinance.

The Hosted STR Ordinance involves an LCP amendment (LCPA) and Zoning Text Amendment (ZTA) to the Malibu Municipal Code. The Hosted Ordinance regulations cannot go into effect until the LCPA is certified by the California Coastal Commission.

Questions

• For general information regarding short-term rentals or the TOT program, call 310-456-2489.
• Due to operational changes as a result of the COVID-19 pandemic, the City has made changes to how residents can report a nuisance related to a short-term rental. Residents who wish to report a nuisance related to a short-term rental in their neighborhood may now call the Short-term Rental Hotline at (310) 456-2489 ext. 308 or email STR@malibucity.org. Residents can leave a message or send an email including the rental address, the nature of the nuisance and any other pertinent details.  Code Enforcement staff will respond to the calls the next business day. Residents needing more immediate assistance, should call the Lost Hills Sheriff’s Station at 818-878-1808. As always, in an emergency, residents should call 911.