Daily Regulatory Notes 04/10/2025
Cities address STRs. Washington advances bill; Austin, TX enforces regulation; Lewisville, TX creates survey; South Lake Tahoe, CA overturns Measure T; Mendocino County, CA schedules workshops; Hood River, OR upholds ordinance; Nantucket, MA reports tax; Texarkana, AR schedules vote. READ MORE.
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. 📰
Washington
Washington lawmakers are advancing House Bill 5576 which would allow local governments to double their current excise tax on short-term rentals like Airbnb and VRBO from 2% to 4%, aiming to raise funds for affordable housing and services amid a growing housing shortage and homelessness crisis.
Proposed amendments to limit or target the tax—such as exemptions for low-income or veteran hosts—were rejected. If passed, the new tax authority would take effect in April 2026 and could generate $21 million annually for housing-related programs.
Austin’s new ordinance requiring all short-term rentals to pay an 11% hotel occupancy tax officially took effect April 1, with platforms like Airbnb and Vrbo now collecting the fee directly from guests.
Previously, only permitted properties were subject to the tax, but the new policy broadens compliance across the board. City leaders say the change helps fund local services and takes aim at unlicensed STRs, which Councilmember Vanessa Fuentes says are affecting affordability by pushing out long-term housing.
Lewisville is taking a step toward potential short-term rental regulation by asking residents to weigh in through a public survey released by Neighborhood Services.
The 13-question survey open until April 11 invites locals to share their experiences and opinions about STRs in the community. While some residents cite the economic perks of vacation rentals, others have voiced concerns about their effects on neighborhood character.
You can take the survey here.
South Lake Tahoe will not appeal a court decision that overturned Measure T, a voter-approved law that banned most short-term rentals in residential areas.
The El Dorado County Superior Court ruled the measure’s exception for full-time residents was unconstitutional, citing discrimination against out-of-state property owners. In response, the City Council approved a 45-day moratorium on new STR permits in residential zones to reevaluate its approach. Officials say policy revisions will be discussed at the April 22 Council meeting.
```⭐ Staying ahead of STR regulations isn’t just about deadlines—it’s about knowing what’s coming. Check out the Calendar Tracker to stay updated on your area's meetings or workshops.
STRisker Calendar Tracker
Staying ahead of STR regulations isn’t just about deadlines—it’s about knowing what’s coming. Our Calendar Tracker keeps you informed on upcoming meetings, key votes, and policy changes, so you never miss a critical update.
Mendocino County is preparing to expand its short-term rental regulations into inland areas and will host five public meetings throughout April to gather community input.
The proposed Inland Short-Term Rental Ordinance aims to address concerns like housing availability, neighborhood impacts, and infrastructure compatibility, while aligning with the county’s General Plan. The meetings will include presentations by Planning and Building Services staff and roundtable sessions for residents to share feedback on noise, parking, and housing displacement.
A virtual option is available for the final Ukiah meeting on April 30, and residents can also provide input via an online survey.
```Hood River’s short-term rental ordinance has been upheld in federal court, reinforcing the city’s rule that STR operators in residential zones must live on-site or have a full-time tenant who does.
Ordinance 2026, adopted in 2016, came with a seven-year grace period that ended in October 2023, after which noncompliant license holders became ineligible for renewal. Out-of-state homeowners challenged the rule under the Dormant Commerce Clause, claiming it unfairly restricted their participation in the rental market. Mayor Paul Blackburn called the decision a win for neighborhood stability and the city’s broader housing efforts.
Nantucket's short-term rental tax revenue fell 27% last summer compared to 2023, marking one of the lowest tax earnings from vacation rentals since the state imposed the tax in 2019.
The decline comes despite an increase in taxes from traditional lodging, like hotels, which saw an 11% boost. Industry stakeholders attribute the drop to higher rental prices, an oversupply of vacation homes, and growing concerns about Nantucket becoming overpriced.
A proposed ordinance to regulate short-term rentals like Airbnb and Vrbo drew mixed public feedback during Monday’s city Board of Directors meeting, prompting the Board to delay a final vote until April 21.
The ordinance would require annual registration, enforce noise and parking rules, and cap STRs at 2% of the city’s single-family homes. The measure would not apply to bed and breakfasts and excludes RVs and manufactured homes.
```In case you missed it:
Genelaine Urbano
READ: Global Regulatory Notes (6)
📆 Read: STRisker's Calendar
Dane Artisola