Shawn Lavi, CPA, is the principal and the author of this page. Elias Lavi is co-owner and founder.
In Newport Beach, a short-term lodging permit is scarce, and it can move with the property. That shapes how owners rent, buy, and sell. We work with Newport Beach owners remotely, by Zoom, phone, and secure upload. Our only office is at 7707 Sunset Blvd in Los Angeles, and we have no office in Newport Beach.
You work with Shawn Lavi, CPA or Elias Lavi, CPA directly.
The permit and the cap
Newport Beach defines short-term lodging as renting a residential unit for 30 consecutive days or less, home sharing included. If you rent that way in an R-1.5, R-2, or RM zone, you need a Short Term Lodging Permit and a business license.
The city caps active permits at 1,550 at any time. It is not issuing new permits until the count falls below that cap. The city's address lookup tells you whether a property can be used for short-term lodging at all.
When a permit changes hands
The city allows a short-term lodging permit to be transferred. On a purchase, that can make a permitted property worth more to the right buyer. We look at how the price and the permit affect your basis and future income. Then we set up the books from the first booking.
The 10% transient occupancy tax
Every permit holder pays Newport Beach's transient occupancy tax, which is 10% of the lease amount under Municipal Code Chapter 3.16. We reconcile what you collect, what a platform remits for you, and what lands on your Schedule E.
Short stays also change the income tax picture. With an average stay of seven days or less and enough personal involvement, losses may not be passive. We check both tests before you count on a deduction.
Orange County assessments and appeals
The Orange County Assessor values Newport Beach property. The regular window to appeal an assessment with the Orange County Assessment Appeals Board runs July 2 through November 30. We review the value and help you decide whether filing makes sense. See property tax appeals.
Newport Beach FAQs
Can I get a new short-term lodging permit in Newport Beach?
Not right now. The city caps active permits at 1,550 and is not issuing new ones until the number falls below that.
Does a Newport Beach STR permit transfer when I sell?
The city allows permits to be transferred, subject to its transfer process.
What is the Newport Beach transient occupancy tax rate?
10% of the lease amount, paid by every short-term lodging permit holder.
Book a free 30-minute New Client Introduction
Send us your permit number, your platform statements, and last year's return. We will tell you what we would clean up.
Book a free 30-minute New Client Introduction
General information only, not advice for your situation. Rules and rates change, so we confirm them before you act.