Daily Regulatory Notes 02/12/2026

North Carolina

A pending decision by North Carolina’s Property Tax Commission may determine whether some short-term rentals should be valued differently for tax purposes.

Property Tax Commission (PTC) | NCDOR

The Property Tax Commission consists of five members, three of whom are appointed by the Governor and two of whom are appointed by the General Assembly. The

NCDORAuthorization for Bank Draft Installment Agreement

The dispute centers on whether existing valuation systems improperly treat STRs as standard residences despite their income-generating use. Officials and policy observers say the ruling could shape future tax policy and regulatory approaches to STRs across the state.

Santa Cruz, CA

Santa Cruz City Council updated local accessory dwelling unit rules to comply with state law but postponed a decision on allowing short-term rentals at properties with ADUs, directing staff to return with further analysis.

A planning commission recommendation would permit limited short-term rentals in a primary residence with an ADU for up to 90 days per year and no more than seven consecutive days. The council will consider final approval of the ADU ordinance updates at its Feb. 24 meeting while continuing to evaluate potential STR policy changes tied to ADU properties.

Bar Harbor, ME

A Maine district court ruled in favor of Bar Harbor in an enforcement case against an unregistered short-term rental, ordering the property owner to pay $47,700 in fines and penalties after failing to respond to the town’s complaint.

The penalties stem from advertising and operating the rental without a required registration across multiple months in 2023 and 2024, with additional fines tied to guest stays during that period. Officials say the ruling reinforces the requirement that short-term rental operators maintain valid registrations to continue operating.

Los Angeles, CA

A Deloitte report finds lodging demand during the LA28 Olympics could exceed available capacity on 13 of 19 competition days, potentially leaving up to 320,000 visitors seeking accommodations and prompting calls for policy adjustments to expand short-term rental supply.

The analysis suggests local governments could address peak demand by allowing more flexible STR operations, which proponents say would increase lodging options and generate additional tax revenue and economic activity. Business groups and industry representatives are urging officials across Los Angeles and Orange counties to consider updated short-term rental rules ahead of the Games.

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Ocean City, MD

Ocean City’s Board of Supervisors has begun verifying signatures for a petition challenging the extension of a short-term rental moratorium that halts new licenses in certain residential areas.

The petition effort submitted 1,257 signatures, and officials must confirm at least 990 valid voters for the issue to advance to a public referendum. The moratorium was extended to allow time for the town to consider updated STR regulations. Signature verification is expected to conclude this week, determining whether voters will weigh in on the policy.

Laketown Township, MI

Laketown Township officials are reviewing a proposal to reshape short-term rental rules before a moratorium on new standalone rentals expires June 30, 2026, with further discussion scheduled for March 4.

The plan would allow short-term rentals in mixed-use zones but limit residential districts to owner-occupied accessory dwelling units only, while reducing occupancy limits from 16 to 10 guests. The proposal also comes as officials estimate a significant number of unregistered STRs operating alongside roughly 100 permitted units.

Pittsburgh, PA

Pittsburgh City Council held a public hearing on proposed short-term rental regulations, with residents citing safety incidents and neighborhood impacts as officials consider adding STR definitions and permitting requirements to the zoning code.

Under the proposal, owner-occupied rentals would not require a zoning permit, while non-owner-occupied properties would need approval, and the zoning permit bill has been sent to the planning commission for review. A separate measure addressing business licensing for STR operators has been paused for 12 weeks as policymakers continue evaluating the framework.

Hilton Head Island, SC

Hilton Head Island officials are considering a new short-term rental permit fee structure that would replace the current flat fee with a $150 per bedroom rate, increasing costs for most larger properties while reducing fees for smaller units.

The proposal, now advancing to town council readings on March 10 and March 31, is intended to fund expanded enforcement, inspections, and a 24/7 response system as STR activity grows. Permit renewals will shift to a 12-month cycle with a May 15 deadline if approved.

Wayne, NJ

Wayne Township Council unanimously introduced two companion ordinances to formally prohibit short-term residential rentals of 29 days or less, including Airbnb-style stays, citing repeated neighborhood complaints and strain on municipal services.

The measures would codify the township’s existing ban, tighten zoning definitions, expand enforcement authority to police and code officials, and establish escalating penalties for violations. The ordinances will proceed through the township’s adoption process following their 9–0 introduction.

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