Daily Regulatory Notes 07/22/2025

Cities address STRs. Chicago, IL applies tax to STR listings; Orange County, CA reviews enforcement; Largo, FL expresses frustrations over regulation; Ocean City, NJ approves 3% local tax; Londonderry, VT upholds rules. 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. 📰

Chicago, IL

Chicago is tightening the rules for short-term rentals, aligning them more closely with traditional hotels by extending the state’s Hotel Operators’ Occupation Tax (HOOT) to Airbnb and VRBO listings.

Hotel Operators’ Occupation Tax
The tax is imposed on the occupation of renting, leasing, or letting rooms to persons for living quarters for periods of less than 30 consecutive days.

Starting July 1, 2025, hosts will pay a 6% tax on 94% of their gross rental income—on top of already steep local lodging taxes. At the same time, city tourism officials are pushing a plan to increase hotel taxes even further through a proposed Tourism Improvement District, raising the downtown rate to 18.9% for large hotels. While advocates argue this added revenue could fund much-needed tourism promotion to compete with giants like Las Vegas and New York, some hotel operators and event planners are concerned about rising costs driving business away.


Orange County, CA

As Orange County braces for a potential surge in short-term rentals tied to the 2026 World Cup and 2028 Olympics, a new Grand Jury report is sounding the alarm on outdated and inconsistent STR regulations across the county’s 34 cities.

READ: Long-Term Solutions to Short-Term Rentals

The report warns that most cities are underprepared for what could be a repeat of the Paris 2024 Olympics, where STR listings doubled and nightly rates skyrocketed. Highlighting wide regulatory disparities and inconsistent enforcement, the report notes that while some cities have STR bans, others allow hundreds of permits—creating enforcement gaps and lost tax revenue.


Largo, FL

In Largo’s Del Prado neighborhood, frustrations over short-term rentals have reached a boiling point as Pinellas County quietly pauses its newly required rental certificate process.

Short-Term Rental (STR) Certificate of Use Program - Pinellas County
Welcome to the Pinellas County Short-Term Rental guide! Whether you’re renting out your property for the first time or you’re a seasoned vacation rental host, here’s what you need to know to stay compliant, protect your guests and be a great neighbor.

The ordinance approved earlier this year, mandates STR hosts obtain a certificate and pass inspection, but the county shut down the application portal to refine the process despite the July 31 deadline. The county confirmed it has received complaints on several of these properties, none of which have filed for compliance.


Ocean City, NJ

Ocean City has voted to impose a 3% local tax on short-term rentals booked through Airbnb and similar platforms aiming to capture more revenue from the increasingly popular booking method.

Councilmembers supporting the tax say the modest fee—about $75 on a $2,500 rental—will help offset the city’s rising costs tied to tourism without deterring visitors. But Airbnb raised legal concerns, stating that under state law, the tax should also apply to hotels and motels to ensure fairness. The new tax won’t take effect until 90 days from passage.


Londonderry, VT

In a decisive town vote on Saturday, Londonderry residents chose to uphold stricter short-term rental rules aimed at slowing rental growth and preserving local housing for year-round residents.

SHORT TERM RENTALS | Town of Londonderry, VT

The new regulations, originally adopted by the select board earlier this year, survived a repeal effort after residents voted 66–25 to keep them in place. The rules limit new non-owner-occupied short-term rentals to 50 nights per year and require a one-year waiting period before newly purchased homes can be used as short-term rentals unless the owner lives on-site.


In case you missed it:

Daily Regulatory Notes 07/21/2025
Cities address STRs. Los Angeles, CA sues Airbnb; Jacksonville Beach, FL reviews enforcement; Stowe, VT discusses cap; Sumner County, TN advances ordinance; Leyden, MA approves bylaws; Rapid City, SD schedules public open house. READ MORE.

READ: Daily Regulatory Notes 07/21/2025


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.

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