The City of Morro Bay is cracking down on illegal short-term rentals. Starting November 1, enforcement letters will be sent to owners operating without proper permits, business licenses, or tax accounts. Property owners must pay up to three years of back taxes and could face fines of $500 per day for non-compliance. Rentals must also pass inspections every four years, with annual permit renewals required. The city says non-compliant rentals must shut down immediately.
