Pismo Beach Short-Term Rental Regulations
| Permit | ✓ Required — Vacation Rental (VR) Permit + Business License + TOT Certificate ($796.95) — See below for other permit types |
| Primary Residence | Varies by permit type |
| Annual Day Limit | 182 days–unlimited (varies by permit type) |
| Tax Rate | 14.5% |
| Max Penalty | $5,000 per violation |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
- Vacation Rental (VR) Permit + Business License + TOT Certificate — No primary residence requirement — Permitted in C-1, RR, and R-4 zones only ($796.95/year)
- Short-Term Rental (STR) License + Business License + TOT Certificate — Primary residence required — limited to 182 days/year — Permitted in R-1, R-2, R-3, OS-1, and OS zones only. No new permits being issued as of November 2023. ($2,943.00 initial, $920.85 renewal)
Vacation Rental (VR) Permit + Business License + TOT Certificate
| Fee | Amount |
|---|---|
| Initial cost | $796.95 |
| Renewal | $796.95 / Annual |
This permit type does not require primary residence. Zoning restriction: Permitted in C-1, RR, and R-4 zones only.
Short-Term Rental (STR) License + Business License + TOT Certificate
| Fee | Amount |
|---|---|
| Initial cost | $2,943.00 |
| Renewal | $920.85 / Annual |
The property must be your primary residence. This means investment properties are not eligible for this permit type.
Application Process
Online application through CitizenServe portal at pismobeach.org/permitportal. Planning Division approval required before business license. Inspection required.
Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Transient Occupancy Tax (TOT) | 11% | City of Pismo Beach |
| Lodging Business Improvement District (LBID) | 2% | City of Pismo Beach |
| San Luis Obispo County Tourism Marketing District (TMD) | 1.5% | Visit San Luis Obispo County |
Combined rate: 14.5% of gross rental income.
Collection: Host self-remits. TOT Certificate required. Online filing available.
Rental Limits
Pismo Beach annual day limit: 182 days–unlimited (varies by permit type).
Occupancy & Density Limits
2 people per bedroom plus 2 additional people
Zoning & Restrictions
Owner-occupied: Permitted in R-1, R-2, R-3, OS-1, and OS zones only. No new permits being issued as of November 2023. Vacation Rental (VR) Permit + Business License + TOT Certificate: Permitted in C-1, RR, and R-4 zones only
Insurance & Safety
Safety & Operating Requirements
- Inspection required (bedroom count, parking, safety standards)
- Good Neighbor Policy compliance mandatory
- Responsible party must be within 25 miles of property
Penalties for Non-Compliance
Maximum penalty: $5,000 per violation.
Compliance Checklist
Follow these steps to legally operate a short-term rental in Pismo Beach:
- Determine your permit type. Pismo Beach has 2 permit types. Identify which applies to your property (Vacation Rental (VR) Permit + Business License + TOT Certificate, Short-Term Rental (STR) License + Business License + TOT Certificate).
- Meet safety requirements. Inspection required (bedroom count, parking, safety standards). Good Neighbor Policy compliance mandatory. Responsible party must be within 25 miles of property.
- Apply for your STR permit. Submit application + $796.95 fee. See permit types above to determine which applies.
- Register for tax accounts. Set up lodging tax accounts with City of Pismo Beach Finance Department.
- Collect and remit taxes. 14.5% on all bookings.
- Renew annually. Renewal fees vary by permit type ($796.95 / $920.85). See permit types above.