Daily Regulatory Notes 02/23/2026

Montana

A new property tax structure in Montana will lower tax rates for primary residences and long-term rentals while shifting more tax burden to second homes, vacation properties and short-term rentals.

Real estate broker Bill Stene warns the changes could create uneven impacts on property values and future sales, prompting a public seminar Feb. 24 at the Billings Hotel and Convention Center.

Palm Spring, CA

Officials in Palm Springs are weighing whether to give the Administrative Appeals Board more flexibility in handling short-term rental violation appeals after stakeholders argued the current ordinance limits the board’s ability to consider mitigating circumstances.

The board plans to research enforcement approaches used in other cities and is expected to revisit the issue at its next meeting on March 18.

Del Mar, CA

The City Council in Del Mar approved new short-term rental permit fees of $815 for an initial two-year license and $598 for renewals as part of implementing its first comprehensive STR ordinance, which caps eligibility at 129 properties while allowing 150 existing rentals to continue operating until they phase out.

Officials said the fee structure and rollout will be evaluated over time using operational data, even as some residents warned high costs could accelerate attrition and impact projected tourism tax revenue.

St. Louis, MO

St. Louis approved legislation to begin collecting a 3% fee on short-term rental stays of 30 days or less, requiring operators to obtain a business license and remit the fee either directly or through platform agreements.

The measure implements voter-approved Proposition S and directs revenue toward affordable housing, tenant assistance and right-to-counsel programs. The new framework establishes quarterly reporting requirements for operators and formalizes enforcement through the city’s License Collector.

San Bernardino, CA

Officials in San Bernardino held an extended discussion on a potential citywide short-term rental ban at their Feb. 18 council meeting.

The lengthy debate drew criticism from residents waiting to speak on other matters, while at least one councilmember voiced strong support for prohibiting STR operations. The issue remains unresolved and could return for further consideration at upcoming council sessions.

Social Listening 🎧: Podcast

Policy talk doesn’t just happen in the news cycle—it can also live in long-form audio. STRisker’s Podcast Signal turns hours of episodes into actionable insight, indexing transcripts so you can surface key mentions of STRs, ordinances, and local decision-makers in seconds.

Create Your Watchlist - 14 Day Free Trial

Los Angeles, CA

Los Angeles officials are advancing a ballot measure to increase the transient occupancy tax by 2% through 2028, which would apply to short-term rentals alongside hotels and hostels. Voters are set to decide in the June primary.

Another proposed change would extend the tax framework to online travel companies, signaling tighter oversight of how STR bookings are taxed and reported.

Covington, KY

Debate over short-term rental oversight is intensifying in Covington as local officials push back against proposed state legislation that could strip cities of regulatory authority while they continue grappling with enforcement gaps in current ordinances.

The controversy centers in part on a rehabilitated property formerly used for affordable housing that now operates similarly to an STR but is licensed under a different lodging category, raising questions about regulatory consistency and housing impacts.

Houston, TX

Houston will require short-term rental hosts to register with the city starting April 1 for stays under 30 days, a compliance step officials are emphasizing ahead of the anticipated World Cup tourism surge.

Airbnb reported booking searches for Houston are already up 80%, and the company is promoting earnings incentives for compliant hosts, including an estimated $3,000 in potential revenue during the event and a limited-time $750 bonus for new full-home listings through July 31.

Evanston, IL

Evanston leaders are considering stricter short-term rental rules, including spacing requirements, local management mandates and a citywide cap on units.

Supporters argue tighter oversight protects neighborhoods and housing availability. Critics say stricter limits could reduce income opportunities for homeowners and make it harder for visitors to find places to stay.

Breckenridge, CO

Breckenridge’s fourth year under short-term rental caps showed declining violations and complaints, alongside ongoing management of license limits across designated resort, tourism, downtown, and residential zones.

Officials said enforcement tools including online listing monitoring, a complaint hotline, and strict penalties for noncompliance continue to support compliance while waitlists persist in higher-demand areas. Council discussion also highlighted policy considerations around fee exemptions for primary-residence rentals and whether the structure should evolve as the program matures.

📱 Social Buzz

🎤 Episode Title: Short-Term Rental Tax Loophole: 100% Bonus Depreciation with Madeleine Raiford-Holland
🎤 Episode: Small Business Stories

📻 Listen: https://gritdaily.libsyn.com/short-term-rental-tax-loophole-100-bonus-depreciation-with-madeleine-raiford-holland

👍 We’d love your feedback.
Which stories hit? Which ones missed?

We're constantly refining Daily Notes to make it even more useful for you.

✉️ Just reply directly to this email. We read and respond to every message!

-Will McClure
🙋 P.S.
Know someone else who should be reading Daily Notes? Feel free to forward this along. We’re opening a few more spots.