The VCA is an agreement between Santa Cruz County and VRBO/HomeAway in which VRBO agrees to collect and remit applicable Transient Occupancy Tax (TOT) on behalf of qualifying short-term rental operators using their platform. The agreement became effective May 1, 2025.

The VCA became effective on May 1, 2025.

There are four types of TOT Certificates issued by Santa Cruz County:

  1. COxxxxx Certificate

    This certificate allows you to advertise your short-term rental on any platform.

    Property owners are responsible for reporting and remitting TOT/TMD directly to the County for:

    • Direct bookings
    • Bookings through platforms without a VCA
    • Any transactions not remitted by Airbnb or VRBO
  2. ABxxxxx Certificate

    This certificate allows advertising exclusively on Airbnb.

    Because Santa Cruz County has a Voluntary Collection Agreement (VCA) with Airbnb, Airbnb collects, reports, and remits TOT on behalf of operators. No additional reporting to the County is required as long as you exclusively use Airbnb.

  3. VRxxxxx Certificate

    This certificate allows advertising exclusively on VRBO.

    Under the County’s VCA with VRBO/HomeAway, VRBO collects, reports, and remits TOT on behalf of operators. No additional reporting is required as long as you exclusively use VRBO.

  4. VRABxxxxx Certificate

    This certificate allows advertising exclusively on both Airbnb and VRBO.

    Both platforms collect and remit TOT on behalf of operators under their respective VCAs with Santa Cruz County. No additional reporting is required as long as no other booking platforms are used.

     

It depends on your TOT Certificate type and booking methods.

If all bookings occur exclusively through Airbnb and/or VRBO under applicable VCAs, additional TOT reporting to the County is generally not required.

However, operators using:

  • Direct bookings
  • Other booking platforms
  • Mixed booking methods

may still be required to file TOT returns and remit taxes directly to the County.

Operators are also still required to maintain an active TOT Certificate and Short-Term Rental Permit with the County.

No. The VCA only applies to bookings completed through VRBO/HomeAway and AirBNB platforms covered under the agreement.

Operators remain responsible for collecting, reporting, and remitting TOT for:

  • Direct bookings
  • Bookings through other platforms
  • Any transactions not processed through VRBO/HomeAway or AirBNB

The VCA covers:

  • Transient Occupancy Tax (TOT)
The Tourism Marketing District (TMD) assessment was initially included but later removed through an Addendum to the agreement.

No. Under the Addendum to the VCA, VRBO/HomeAway was no longer required to collect, report, or remit TMD beginning December 1, 2025.

TMD was collected in compliance with the original agreement from May 1, 2025, through December 1, 2025.

  • Guests who stayed between May 1, 2025, and December 1, 2025 may request a refund for TMD directly from the County with supporting documentation.
  • After December 1, 2025, VRBO/HomeAway is responsible for refunding any guests who were erroneously charged TMD.

Guests requesting a TMD refund should provide:

  • Reservation confirmation
  • Proof of payment
  • Dates of stay
  • Documentation showing TMD charges
Additional documentation may be requested during review.

Yes. Operators must still maintain a valid TOT Certificate with Santa Cruz County even if Airbnb or VRBO remits TOT on their behalf.

Under the VCA, the County retains certain audit rights related to tax collection and remittance.

For questions regarding:

  • TOT Certificates
  • TOT reporting obligations
  • TMD refunds
  • Short-term rental tax requirements

Please contact the Santa Cruz County Tax Collector’s Office:
Phone: (831) 454-2289
Email: TTC.WebMail@santacruzcountyca.gov