Panama City Beach

Zoning and stay lengths

Transient residential rentals are allowed in the R-2, R-3, R-TH, CL, CM and CH zoning districts, and on R-1C parcels south of Front Beach Road.[1] The code lists the stay lengths that count: at least a week in R-TH, at least three days in R-1C, R-2 and R-3, and any length in CL, CM and CH.[1] All parking must be off-street, and the dwelling must fit the residential character of the neighborhood.[1]

Certificate and documents

Each dwelling unit needs its own Vacation Rental Certificate, and it is unlawful to rent or let anyone stay without one.[2, 3] Upload a notarized registration affidavit, proof of your DBPR license, proof of registration for the Bay County tourist development tax and a valid city business tax receipt number.[3] The code also asks for evidence that any pool is properly licensed and inspected, and renewal applications are due by October 1 each year.[2]

Fees and inspection

A new registration costs $250 and a renewal costs $150, and a change of ownership needs a new registration fee.[3] The fire department schedules the inspection after it reviews your submission, and you may keep renting while you wait.[3] On renewals the city then sends a separate $75.00 invoice for the inspection.[3]

If you're the tenant

The owner applies for the certificate and signs the notarized affidavit, and can designate any adult as the rental responsible party.[2, 4] The affidavit has a line for a property manager, so the owner can name a tenant-operator as manager under a written agreement.[4] Managing a rental for an owner for pay may need a Florida real estate license, since the state's license law defines a broker to include someone who, for another and for pay, rents or offers or agrees to negotiate the rental of real property.[11]

State law

Florida Statutes section 509.032(7)(b) says a local rule may not prohibit vacation rentals or regulate how long or how often they are rented, and it exempts rules adopted on or before June 1, 2011.[12] The city's rules cover only property inside city limits, and Bay County has its own rental rules outside them.[3]

Rental responsible party

Name one locally available person, 18 or older, who answers a listed phone 24 hours a day, seven days a week.[2] They must be able to reach the unit within one hour, check it at least once a week and accept legal notices for the owner.[2] Failing to respond to calls on more than three occasions can lead to suspension or revocation of the certificate.[2]

Occupancy and postings

The certificate's maximum occupancy is set at 150 square feet of gross floor area per person for one- and two-family dwellings and 200 for other rentals, rounded up.[2] Post the address, the responsible party's name and phone, the occupancy, trash days, the nearest hospital, beach safety and leave-no-trace information, a noise, parking and occupancy notice and an evacuation map of at least 8.5 by 11 inches on or next to the main door or on the refrigerator.[2] The fire department provides the maximum occupancy after you pass inspection.[13]

Signs and listings

Every rental except condominiums and cooperatives needs a sign legible from the public right-of-way, and condominiums and cooperatives need a visible sticker or decal on a door, window or wall.[2] Each must show the responsible party's name and 24/7 emergency number and the unit's certificate number.[2] Show the certificate number in every listing and advertisement.[2]

Fire and life safety

The city's guidelines require hardwired, interconnected smoke detectors with battery backup in every sleeping room and in hallways, plus combination CO detectors in all sleeping areas, with an October 1, 2025 deadline.[13] Units built before October 1, 1983 can keep tested, logged battery detectors instead, unless the city finds the records aren't kept.[13] Install a 5-pound 2A:10BC fire extinguisher on every level, serviced annually, and emergency egress lighting on stairwell landings in multi-story homes.[13]

High impact periods

When the City Council designates a High Impact Period for an area, extra rules apply there, including no renting to anyone under 21 (with exceptions for earlier bookings and active-duty military) and recording the name and age of every overnight guest, with government ID checked for adults.[2] The council sets each period by resolution, and none can last more than 16 days in a row without an extension.[14] Missing a required measure can bring an enhanced fine of up to $1,000 per offense.[2]

State sales tax and surtax

Florida's 6% state sales tax, plus any discretionary sales surtax, applies to transient rentals.[5] Bay County's surtax is 1% for 2026.[6] Register with the Department of Revenue and file returns even when no tax is due.[5]

County tourist tax

Bay County's tourist development tax is 5% and covers all property inside Panama City Beach city limits, and the county collects it.[7, 10] Airbnb and VRBO don't file it for you, so you register and file it yourself, usually every month, with returns delinquent if not postmarked by the 20th.[10] The Bay County Tax Collector began administering the tax on October 1, 2026.[15]

City business tax

The city charges a 1% business tax on gross rental income, remitted monthly, with a minimum annual fee of $50.[8, 16] If you book through Airbnb, VRBO or similar sites, you are responsible for reporting and paying the 1% to the city.[16] You need the receipt before you offer the rental, and the code lets you offer it once you submit the application, while the city's business page says a pre-registration inspection is required.[9, 16]

Total

The city's brochure gives a 13% total to charge the guest, split as 7% to the Department of Revenue, 5% to Bay County and 1% to the city.[8]

Fines and revocation

Civil fines are $500 for a first violation, $1,000 for a second and $1,000 for the third and every later one.[2] A third violation within 12 months of the first can lead to suspension or revocation of the certificate for up to 12 months, and the city's page says it applies to the individual unit, not to a management company as a whole.[2, 3] Paying without contesting earns a 50% reduction.[2]

Warnings and fixes

Correctable violations start with a warning and a correction period, and ignoring it leads to a citation.[2] If an inspection finds violations, you must correct them and be re-inspected within 30 days.[2]

Inspection no-shows

If you aren't there or the unit is occupied, a $100 lock-out fee applies.[3] After three failed attempts to inspect, the city sends notice, and not responding to a fourth attempt may lead to suspension or revocation.[2]

Late renewals

Late renewal fees are $25 for 1 to 30 days, $50 for 31 to 60 days and $100 for 61 to 90 days.[3] After 90 days you lose renewal eligibility and must file a new application at the full $250 plus the $100 late fee.[3]

Tax and receipt penalties

Breaking the business tax receipt rule costs $1,000 for a first offense, $2,000 for a second within six months, $3,000 for a third and $5,000 for a fourth or later.[9] Late Bay County tax returns draw a 10% penalty for every 30 days, up to 50% of the tax due, with a $50 minimum that also applies to zero-dollar returns.[10] Late city business tax payments add an 8% fee for each month late.[16]