Daily Regulatory Notes 01/28/2026
Cities address STRs. Los Angeles, CA discusses TOT; Santa Fe, NM introduces new software; Ocean City, MD pushes back against restrictions; Morro Bay, CA toughens enforcement; Virginia Beach, CA considers increased tax; Albuquerque, NM revives proposed regulation. READ MORE.
Los Angeles officials are moving forward with a ballot measure that would raise the transient occupancy tax on hotels and short-term rentals, citing ongoing budget shortfalls and upcoming mega-events.
The proposal includes a temporary surcharge tied to the 2027 Super Bowl and 2028 Olympics, with projected revenues exceeding $130 million across multiple years. Final versions of the tax increase must be approved by City Council before the February ballot deadline.
Santa Fe is hosting a public meeting to introduce new software designed to improve lodgers tax collection and compliance for short-term rentals.
The city contracted with Neumo last year, a tool officials say helps identify unregistered rentals and bring operators into compliance with local regulations. STR enforcement was a key issue in the 2025 municipal election, with candidates linking lax oversight to housing shortages and lost tax revenue.
A local Ocean City group is pushing back against proposed short-term rental restrictions, submitting a petition with 1,257 signatures to challenge the moratorium in R1 and MH districts.
Group members argue the restrictions harm property rights and undermine a resort economy built on short-term rentals. City officials say the petition has been accepted but must be validated by the Board of Elections before it can move to a referendum. Until then, the moratorium remains in effect.
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City officials in Morro Bay are exploring tougher penalties for illegally operating short-term rentals after successfully reducing overall STR numbers last year.
A proposed ordinance would dramatically raise violation fines, allowing penalties of up to $1,500 for a first offense and $5,000 for repeat violations. The move follows a temporary halt on new permits that brought the city below its 175-unit residential STR cap.
Virginia Beach City Council is considering raising its room night tax on short-term rentals by shifting from a per-unit fee to a per-bedroom charge.
The proposal would increase the tax from $2 per night per rental to $2 per bedroom per night, potentially generating up to $1.7 million in additional annual revenue. The council could act soon, with implementation possible by July 1.
Albuquerque City Councilors are reviving a proposal to limit the concentration of short-term rentals by prohibiting new permits within 330 feet of an existing STR.
The New Mexico Short Term Rental Association opposes the plan, arguing STRs generate significant economic benefits. The proposal is scheduled for a City Council hearing on February 2, with possible amendments to reduce the spacing requirement.
📱 Social Buzz
Episode Title: Your Island News for Tuesday, January 27
Episode: The CHEK News Podcast
https://t.co/SdTFNb9Tip
— San Diego Live Data (@619SDLD) January 28, 2026
San Diego hosts about 4,996 empty second homes—equal to 5,648 short-term rentals, each about 1% of the city’s housing stock. La Jolla alone has 852 vacation homes. Councilmember Sean Elo-Rivera proposes an $8,000 tax on second homes and vacation rentals…
Airbnb and Short-Term Rentals to Pay 2% Tourism Levy From June 2026
— Gicheru (@martingicheru) January 28, 2026
This appears to be calculated for the government as it employs the “taxing at source” model and will effectively formalize a previously elusive segment of the digital economy. https://t.co/k9H6a2u2ES
Lawmakers in Washington have introduced a bill that would enable short-term rental hosts to offer complimentary cannabis pre-rolls to their guests.https://t.co/4HlOyU9cZI
— Mugglehead Magazine (@MuggleheadMag) January 27, 2026
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