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What is California SB 60 (Short-Term Rental Fines)?
California SB 60, signed into law in 2022, amends state law to allow cities and counties to increase the financial penalties for non-compliance with local short-term rental regulations. The bill raises the maximum fine for an initial violation from $500 to $1,500.
For subsequent violations, the maximum penalty is increased from $1,000 to $5,000. It is designed to give local jurisdictions a more effective tool to deter illegal rental activity and address nuisance issues.
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How it works
This law does not create a new statewide regulatory framework but rather empowers local governments. A city or county must affirmatively adopt the higher fine structure authorized by SB 60 into its own municipal code.
Once adopted, local code enforcement can issue citations with these increased penalties when a property owner violates local STR rules, such as operating without a permit, hosting nuisance parties, or exceeding occupancy limits. The fines escalate for repeat offenders, creating a stronger financial deterrent against continued non-compliance.
Why it matters
For vacation rental hosts in California, SB 60 dramatically increases the financial risk associated with violating local ordinances. It makes it crucial for property owners and managers to be fully aware of and compliant with all city and county regulations, including licensing, tax remittance, and operational standards.
The law aims to create a fairer market by penalizing illegal operators who might otherwise have an advantage over compliant, registered hosts.
Examples
- A property owner in a California coastal town repeatedly ignores warnings about loud parties at their rental. After an initial fine, a second violation results in a $3,000 fine, as permitted under the new law.
- A host in a city that has adopted the SB 60 fine structure operates a rental without a required permit. They receive a citation with a $1,500 fine for the first offense.
- A host in Lake Tahoe is found to have falsified their permit application to hide the number of bedrooms. The local jurisdiction, citing repeated non-compliance, issues a maximum fine of $5,000.
- An operator in San Diego lists their property on multiple OTAs without displaying their required city registration number. This violation of the local ordinance leads to a significant fine under the city's SB 60-enhanced penalty system.
Frequently asked questions
Does SB 60 apply to every city in California?+
What kind of violations does SB 60 cover?+
How do I know if my city has adopted the higher fines from SB 60?+
Is there a difference in fines for a first-time violation versus a repeat violation?+
Related terms
California Transient Occupancy Tax
The California Transient Occupancy Tax (TOT) is a local tax levied by individual cities and counties on the rental of transient lodging facilities, including…
California Vacation Rental Association (CAVRA)
The California Vacation Rental Association (CAVRA) is a trade organization that provides advocacy, resources, and networking for vacation rental property…
Business License
A business license for a vacation rental is an official permit issued by a government authority, granting the holder the legal right to operate a short-term…
HOA Rules
HOA rules are the regulations established by a Homeowners Association (HOA) that govern properties within a specific residential community or building. For…