Daily Regulatory Notes 03/10/2025

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. 📰

Arizona

Arizonans for Responsible Tourism gathered at the state Capitol to highlight the economic benefits of short-term rentals citing $500 million in annual tax revenue and over 75,000 supported jobs.

While a 2016 state law prevents local caps, homeowner associations are considering restrictions. Property manager Mike Colburn noted market saturation in areas like South Scottsdale, arguing that natural competition will regulate the industry.

Missouri

The Missouri House has passed House Bill 1086 which would require single-family homes used as short-term rentals to be classified solely as residential properties preventing county assessors from taxing them as commercial properties.

Sponsored by Rep. Chris Brown, the bill aims to address inconsistencies in property tax assessments as some counties have shifted short-term rentals to commercial status leading to nearly 70% higher tax rates. The measure now moves to the Missouri Senate for further consideration.

Buffalo, NY

Buffalo's Common Council is advancing legislation that would limit non-owner-occupied short-term rentals to commercial and mixed-use zones while barring them from most residential areas.

Owner-occupied rentals would still be allowed but would require a license. Fees for non-owner-occupied rentals would be $1,000 for a new license and $400 for annual renewal, while owner-occupied licenses would cost $500 initially and $200 for renewals. Existing rentals will be permitted to operate for one more year before needing to comply. The proposal is currently under committee review before a full council vote.

Palm Coast, FL

Palm Coast has implemented new short-term rental registration requirements, mandating annual registration with both the city and Flagler County.

Property owners must obtain a business tax receipt, a Florida DBPR transient lodging license, a compliance affidavit, proof of advertising compliance, and a sample lease agreement aligned with Ordinance 2025-01. Failure to register may result in a violation notice and a code board hearing.

Tompkins County, NY

Tompkins County has seen a decline in short-term rental availability following Ithaca’s May 2024 regulations, which require owner occupancy and ban LLC-operated rentals.

County Tourism Director Nick Helmholdt attributed the drop in supply to these rules suggesting some hosts converted to long-term rentals or sold their properties. Meanwhile, Governor Hochul’s February legislation imposing a statewide sales tax on STRs is expected to generate $1.3 million for the county, though enforcement mechanisms remain unclear as officials await further state guidance.

Kamas, UT

The Kamas City Council is expected to decide next week on formally banning short-term rentals within city limits.

While short-term rentals are already prohibited due to their absence in the city’s allowed use table, no formal ordinance has been adopted. The move comes as Utah’s House Bill 256, which would allow online listings as evidence of violations, awaits potential passage. The Planning Commission has forwarded a positive recommendation for the ban with proposed penalties for non-compliant operators.

North Charleston, SC

North Charleston has implemented a cap of 60 short-term rental permits per district, totaling 600 citywide. Officials estimate that around 370 rentals currently operate without a permit.

If a district reaches its cap, new applicants are placed on a waitlist. Enforcement includes fines of up to $1,000 for non-compliant rentals, though these are often reduced in court. The city is renewing permits and plans to launch a dashboard showing available permits by district.

In case you missed it:

Weekly Regulatory Briefing (10)

Each week, we bring together the biggest updates in short-term rental regulations from coast to coast. Whether it’s fresh local regulations, emerging trends, or major discussions, our briefing provides all you need to stay in the know.

STRisker - Short-term regulatory changes and newsGenelaine Urbano