Daily Regulatory Notes 02/05/2026
Cities address STRs. Las Vegas, NV investigates a suspected biolab operating as an Airbnb; Arizona advances bill; Albuquerque, NM rejects proposal; McCall, ID introduces bill; St. Louis, MO considers new tax; Santa Monica, CA files lawsuit. READ MORE.
Las Vegas police raided a home operating as an Airbnb after reports that guests became “deathly ill,” uncovering what authorities say was an illegal biolab inside the property.
SWAT officers seized refrigerators containing vials of unknown liquids and hazardous materials, prompting FBI testing. The property manager, Ori Solomon, has been charged with felony hazardous waste violations related to improper chemical storage. Officials say the case exposes potential gaps in short-term rental monitoring and compliance.
Arizona
Short-term rentals have reemerged as a major point of contention in the Arizona Legislature, as lawmakers advance bills that would significantly expand local authority over vacation rentals.
The proposed measures would allow smaller towns to cap permits, restrict zoning locations, ban rentals in guest houses, and shift tax collection responsibilities directly to hosts. Some properties could also be reclassified as commercial, potentially triggering higher tax burdens. Gov. Katie Hobbs has added to the debate with a proposal for a $3.50-per-night statewide tax on short-term rental stays.
Albuquerque’s City Council has once again rejected an effort to further regulate short-term rentals, voting down a proposal that would have imposed minimum spacing requirements between Airbnbs and Vrbos.
Supporters said the measure would act as a “guardrail” to prevent neighborhood saturation and address concerns about absentee ownership and lost housing availability. Critics, including many short-term rental owners, said the ordinance mischaracterized hosts and threatened local income.
Idaho lawmakers have introduced a bill that would significantly restrict McCall’s ability to regulate short-term rentals, including banning local permits, inspections, caps, and spacing rules.
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The proposal allows only limited safety requirements and requires short-term rentals to be treated the same as standard residential homes under state building codes. City leaders say the legislation threatens local control and undermines regulations designed to manage tourism impacts in residential neighborhoods.
St. Louis officials are considering a new tax on short-term rentals while legal challenges delay enforcement of the city’s 2023 regulatory ordinance.
The proposal would apply a 3% per-night tax and require a business license, even as registration and inspection rules remain on hold due to a lawsuit. Aldermen backing the bill say voter-approved Proposition S allows the city to collect the tax and use proceeds for housing-related programs.
As St Louis waits for courts to weigh in on old law, BOA members seek short-term-rental tax legislation @jonnykip21 reports. @KMOV https://t.co/Q79xJobw6f
— David Amelotti (@DavidAmelottiTV) February 5, 2026
Santa Monica has filed a lawsuit accusing the landlords of more than 25 rent-controlled properties of illegally converting apartments into short-term rentals in violation of the city’s Residential Leasing Requirements Ordinance.
City attorneys allege at least 62 rent-controlled units were listed on Airbnb nearly 3,000 times, generating an estimated $18 million in unlawful revenue. The complaint says the landlords used sham one-year leases and furnished units to disguise short-term stays by guests who were not primary residents. The city is seeking disgorgement of profits, civil penalties of $2,500 per violation, and an order to halt the illegal rentals.
📱 Social Buzz
Episode Title: 103 - Property Management Vs Co-hosting & The Opinions No One Asked For with Marisa Grover
Episode: Hello; Welcome
Were the paid protestors at town council meeting opposing short-term rentals regulation @Airbnb's #H1B workers? (thread)
— Rodney.Roberts (@RodneyR58127664) February 5, 2026
Airbnb accused of paying protesters to attend California council hearing https://t.co/ONUTcP8jxO via @SFGate
Here’s an interesting case of someone buying a property with a plan to use as a short term rental but after purchasing gets denied. They have evidence of the town agreeing that the use was permitted but was later denied by the Zoning Board. This is a very problematic situation.…
— Randy Miller (Realtor) (@RandyRealtorNH1) February 5, 2026
The plot surrounding short-term rental restrictions in Park Township has thickened after a group of roughly 70 homeowners filed a federal lawsuit on Jan. 13.https://t.co/lAAycClgOP
— DJC Oregon (@djcOregon) February 4, 2026
The WA State Legislature is voting this week to increase taxes on short-term rental stays. Legislators say the tax will lead to more affordable homes, but short-term rentals make up less than 1% of available housing in the entire state.
— Nels Christopherson🇺🇸🇰🇷 (@christophersonn) February 4, 2026
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