Panama City Beach Short-Term Rental
Regulations & Permit Rules

• Every Florida vacation rental (a home, condo, or 1 to 4 unit dwelling rented more than three times a year for stays under 30 days, or advertised as regularly rented) must hold a Division of Hotels and Restaurants license from the Florida DBPR before operating.
• Fees: $50 application (new or change of owner), $10 Hospitality Education Program fee, $170 per year for a single unit or $180 for a group of 2 to 25 units. Collective licenses run $150 plus $10 per unit.
• This market is in DBPR District 6 (Panama City), which renews annually on June 1.
• DBPR inspections are complaint-driven rather than routine. Units must meet NFPA 101 life safety requirements, including smoke detectors in every unit, and buildings of three stories or more must file a balcony inspection certificate every three years.
• Florida law (F.S. 509.032) preempts local governments from banning vacation rentals or regulating how often or how long they rent, unless the local rule was adopted on or before June 1, 2011. Registration, inspection, noise, parking, and trash rules remain local.

Source: Florida DBPR Division of Hotels and Restaurants / F.S. 509.032, 509.242

• It is unlawful to rent or allow occupancy of a vacation rental without a valid city Vacation Rental Certificate.
• New registration: $250 registration fee, $75 reinspection fee if needed, $100 lock-out fee if the inspector cannot access the property.
• Annual re-registration: $150 plus a $75 inspection invoiced separately. Renewals require an annual reinspection.
• Late renewal: $25 (1 to 30 days), $50 (31 to 60 days), $100 (61 to 90 days). After 90 days renewal eligibility is lost and the property must reapply at the full $250 plus the $100 late fee.
• Required documents include the DBPR license, proof of Bay County TDT registration, and a valid PCB Local Business Tax Receipt number.
• The ordinance covers any unit rented more than three times a calendar year for periods under 30 days, or advertised as regularly rented to guests.

Source: City of Panama City Beach Short-Term Rentals / pcbfl.gov

• Bay County Ordinance 23-18 (adopted August 1, 2023) applies to one to four family structures outside city limits; high-rise condominium units and apartment complexes are exempt.
• Fees: $250 initial inspection, $50 reinspection, $100 lock-out, $150 renewal. Rentals must be recertified annually and on any change of ownership.
• Registration requires a notarized affidavit, a fire self-inspection checklist, TDT registration with the Bay County Clerk of Court, a DBPR license, a pool inspection certificate when five or more properties share a pool, and a balcony inspection certificate for rentals over two stories.

Source: Bay County Short-Term Vacation Rental Inspections / baycountyfl.gov

• Florida state sales tax on transient rentals: 6%.
• Bay County discretionary sales surtax: 1%.
• Bay County Tourist Development Tax: 5%, applying inside the beach ZIP codes (32401, 32404, 32405, 32407, 32408, 32410, and the Bay County portion of 32413), remitted through the Bay County Clerk of Court portal (baytouristtax.com).
• Airbnb collects and remits the state tax and surtax on Florida bookings; confirm TDT remittance for each platform you use.

Source: FL DOR DR-15TDT and DR-15DSS / baytouristtax.com

• First offense: $500. Second offense: $1,000. Third and subsequent violations within a 12-month period: $1,000 and the certificate is revoked for one year.
• Renewal eligibility is lost after 91 days late, forcing a new full-price application.

Source: PCB Ordinance 1632 / pcbfl.gov

• Gulf-front properties typically require windstorm and flood insurance in addition to standard hazard coverage, and hurricane season (June through November) overlaps the summer peak.
• Many beach condo towers date to the 2000s building boom; review association reserves, assessments, and rental rules before purchasing.