Daily Regulatory Notes 06/09/2025
Cities address STRs. Montana enforces law; Nantucket, MA discusses zoning code; South Lake Tahoe, CA changes regulations; Hermosa Beach, CA handles lawsuit; Maui, HI discusses bill; Columbia, MO enforces ordinance; Saratoga Springs, NY reviews enforcement. 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. 📰
Montana
Montana’s sweeping property tax overhaul, signed into law by Gov. Gianforte in May, is set to significantly reduce tax bills for owner-occupied homes and long-term rentals, but sharply raise taxes on short-term rentals and second homes.
The new homestead exemption, effective in full by 2026, applies only to primary residences and long-term rentals occupied at least seven months a year, leaving short-term rental properties facing projected tax hikes of up to 68% statewide — with even steeper increases in places like Missoula County where taxes on non-homestead residences could more than double.
A Massachusetts judge has ruled that Nantucket’s zoning code does not allow short-term rentals under 31 days in the island’s Residential Old Historic district unless the owner lives on-site and rents out rooms.
The decision vacates a previous ZBA ruling and marks a major setback for STR operators like the Grapes, whose rental was at the center of the case. The ruling is the latest twist in years of local efforts to clarify STR legality after repeated failures to pass zoning amendments at Town Meeting. Town officials are now weighing an appeal, with a closed-door session set for June 10.
South Lake Tahoe is advancing a major overhaul to its Vacation Home Rental (VHR) ordinance, with the City Council voting to hold a first reading and scheduling adoption for June 17.
If passed, the new rules—effective July 17—will apply only to VHRs outside the Tourist Core and replace the previous 1,400-unit cap with a 150-foot buffer between VHRs. Key changes include banning VHRs in most multifamily housing, stricter property manager duties (including 24/7 availability and identity-verifying check-ins), occupancy limits of two per bedroom plus up to five children under 13, and mandatory noise/video monitoring systems.
Additional rules mandate defensible space inspections and require compliance with all regulations regardless of who is staying at the property. The ordinance would also allow a preference system for previous permit holders in good standing affected by Measure T. Council will review the ordinance again in September.
Hermosa Beach’s short-term rental ban is once again under legal fire, with a high-profile administrative hearing spotlighting questions of fairness and compliance with coastal law.
Attorney Frank Angel asked a city-appointed hearing officer to recuse herself after revealing emails suggesting prior STR decisions were shared with city staff for feedback—raising alarms about impartiality. Representing homeowner Gary Ashe, Angel argued the city lacks Coastal Commission approval to enforce its 2016 ban and that Ashe’s rentals qualify as legally nonconforming.
Maui’s controversial Bill 9, which would phase out short-term rentals in apartment-zoned areas, returns to the spotlight Monday as the Housing and Land Use Committee considers key amendments that could reshape its impact.
The original proposal, aimed at reclaiming thousands of units for long-term housing, has been revised down to about 2,200 potentially convertible properties—most owned by non-residents and many tied to the “Minatoya List,” a legal carveout that allowed continued STR use in zones never intended for tourism. New proposed changes include delaying enforcement until 2030 and exempting timeshares entirely.
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.
Columbia’s short-term rental ordinance officially went into full enforcement on June 1, and already the city is navigating its first wave of implementation challenges.
Read the full ordinance here.
With 75 STR applications received and five withdrawn, officials are preparing for five public hearings to review conditional use requests under the new law. The ordinance, passed last July, defines three tiers of short-term rentals, sets occupancy caps, limits each owner to one license, and requires a Boone County-based agent to be available around the clock for complaints.
Even with the excitement around the 2025 Belmont Stakes Racing Festival, Saratoga Springs short-term rental operators reported underwhelming performance compared to previous years, pointing to slower bookings and the need to cut rates.
As local hosts navigated these last-minute trends, some also continued adjusting to the city’s newly enacted STR rules which cap rentals at 150 days per year and now require operators to be licensed. Passed in December, the regulations have added a layer of complexity for property owners, who are still working through how to stay compliant without losing income potential.
In case you missed it:
Genelaine Urbano
READ: Weekly Regulatory Briefing (23)
👍 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.