Is The Mammoth Lakes Moratorium The End for Airbnb’s?

New regulations threaten to reshape the short-term rental landscape in this popular ski town.

Mammoth Lakes, CA — July 18, 2024 — The Town of Mammoth Lakes has recently lifted a moratorium that had put a halt to short-term rentals (STRs) for 187 days.

This moratorium, instituted on October 18, 2023, allowed the town to conduct an in-depth study on the impact of STRs, resulting in significant changes to the current short term rental plan.

"During the moratorium, an economist evaluated the impact of short-term rentals on local housing and the community, leading to the creation of the Certified Properties program," said a spokesperson for the Town of Mammoth Lakes.

This new program represents a shift in how STRs are managed, as well as how the transient occupancy tax (TOT) and the tourism business improvement district (TBID) assessment are collected.

The spokesperson added, “All previously issued TOT certificates have been canceled, and property owners wishing to rent their properties on a transient basis must complete the Certified Property authorization process by June 14, 2024.”

This process involves a $125.00 fee per property, with the authorization renewed annually. For 2025, the renewal fee is set at $250.00 per property.

Certain zoning restrictions might apply soon.

“During the moratorium, an economist evaluated the impact of short-term rentals on local housing and the community, leading to the creation of the Certified Properties program,” said a spokesperson for the Town of Mammoth Lakes.

This new program represents a shift in how STRs are managed, as well as how the transient occupancy tax (TOT) and the tourism business improvement district (TBID) assessment are collected.

The changes introduced by the Certified Properties program have had a ripple effect beyond just Airbnb owners.

“This moratorium has hurt a lot more than Airbnb owners; it’s also hurt the local property management industry, cleaners, and more, as homeowners were unable to change companies during the moratorium,” explained a local property management company in the Mammoth Lakes area.

The freeze on rental activities left many service providers in limbo, affecting their income and operations.

Under the new Certified Properties program, TOT certificates will now be held solely by property owners rather than property managers.

This change aims to improve the Town’s access to owners and ensure better oversight of rental activities and compliance with TOT/TBID remittances.

Starting with the July 2024 return, property-specific reporting will include gross receipts, exempted revenues, taxable gross rents, and occupancy details.

In addition to these changes, properties must undergo a transient rental inspection every four years. The Town of Mammoth Lakes provides a list of approved inspectors and a checklist on its website.

As the deadline for applications approaches, a kiosk has been installed at the Town of Mammoth Lakes administrative offices to assist owners or operators with the new application and remittance process. The kiosk is located at 437 Old Mammoth Road, Suite 230, Mammoth Lakes, CA 93546.

For property owners who do not wish to participate in the new program, the Town offers the option to deactivate their units and close their business tax certificates.

The changes introduced by the Certified Properties program mark a significant shift in the management of short-term rentals in Mammoth Lakes. With these new regulations, the Town aims to balance the benefits of tourism with the needs of the local community, ensuring sustainable growth and compliance.

For further information and to access the Certified Property application portal, visit the Town of Mammoth Lakes website, contact the Finance Department directly, or review the Mammoth Lakes TOT FAQ’s.