Daily Regulatory Notes 02/24/2025

Every day, we bring you a detailed overview of recent news and updates about primary decisions, community feedback, or legislative changes relevant to the short-term rental industry. 📰

Hawaii

Hawaii lawmakers are advancing HB1077 and SB1396 – bills that would embed a new Green Fee into the state’s transient accommodations tax further increasing hotel and short-term rental costs.

The measure backed by Governor Josh Green aims to fund environmental and climate initiatives but has raised concerns over financial oversight and economic impact. If approved, Hawaii’s total lodging tax could exceed 18% making it the highest in the nation.

Lewisville, TX

Lewisville officials are exploring density-based regulations for short-term rentals as they prepare to lift an interim ban on March 4.

During a Feb. 21 retreat, City Council members discussed options such as per-block limits, block-face restrictions, and minimum distance requirements, with some favoring a 500-foot spacing rule. The council is also considering a citywide cap, with suggestions ranging from 90 to 150 short-term rentals. City staff will present a recommendation on March 3, while a public input process on long-term regulations is expected to take several months.

Cocoa Beach, FL

Cocoa Beach is significantly increasing short-term rental fees in single-family neighborhoods raising application costs from $525 to $2,500 and annual renewal fees from $325 to $1,500.

City officials say the higher fees will shift regulatory costs from taxpayers to property owners and help fund additional code enforcement officers.

Cayuga County, NY

Cayuga County is considering an amendment to its occupancy tax law to require all short-term rental operators to register and collect taxes addressing compliance issues with platforms like Airbnb and VRBO.

With short-term rental tax revenue exceeding $1 million, officials are debating how much should support tourism versus other county priorities. Further discussions are expected as officials refine the law and assess its financial and operational impact.

Lafayette, LA

Lafayette officials are enforcing the city’s short-term rental ban in residential neighborhoods with property owners now facing compliance hearings for continued violations.

The law in effect since October, limits short-term rentals to commercial and mixed-use areas, requiring a $100 permit. Enforcement has been complaint-driven with officials monitoring listings and issuing warnings before escalating cases to the city’s adjudication bureau.

Carson City, NV

Carson City is evaluating potential short-term rental regulations to address concerns about housing supply and neighborhood impacts. Officials cite global and regional trends, including regulatory changes in South Lake Tahoe and New York City, as part of the discussion.

Although Carson City has fewer short-term rentals than nearby regions, supervisors will explore policies that ensure responsible rental growth while protecting long-term housing availability. The discussion will focus on zoning, licensing, and balancing economic benefits with community needs.

Nevada City, CA

Nevada City officials are considering updates to their 2015 short-term rental ordinance with discussions centered on balancing community concerns and economic benefits.

At a recent workshop, city staff categorized public input into four key areas: addressing noise and parking issues, distinguishing between owner-occupied and whole-home rentals, potential caps or bans on whole-home rentals, and support for local owners using rentals for supplemental income. Any ordinance changes would require voter approval, with the earliest opportunity in June 2026 unless a special election is held.