Daily Regulatory Notes 07/31/2025
Cities address STRs. Ocean City, NJ receives feedback from Airbnb; Pahrump, NV tightens regulation; Kent County, DE approves regulations; North Myrtle Beach, SC handles lawsuit. READ MORE.
Airbnb is challenging a new 3% tax on short-term rental bookings in Ocean City, claiming the measure is unconstitutional and unfairly targets online platforms like Airbnb and VRBO.
The city council voted 4-3 on July 17 to impose the tax on rentals booked through platforms, but it excludes hotels, motels, and bed and breakfasts. Airbnb argues that the tax violates equal protection rights, as it places online booking platforms at a disadvantage compared to other accommodations. Airbnb has not confirmed whether it plans to legally challenge the ordinance, and it remains unclear when the tax will be implemented.
Pahrump, Nevada is tightening regulations on short-term vacation rentals, with new rules taking effect on August 4. Under Pahrump Bill No. 2025-02, all short-term rental operators will be required to register, obtain a business license, and begin paying room tax, similar to hotels and motels.
Key provisions include registration with both the state and town, a cap of five separate registrations per owner, and limitations on rental occupancy (no more than 16 people). Rentals must comply with quiet hours from 10 p.m. to 10 a.m. on weekends and 10 p.m. to 7 a.m. on weekdays. Those operating without registration will face fines of $500 per day, with additional penalties for repeated violations.
Kent County Levy Court has approved a measure to ease regulations on short-term rentals, removing the requirement for owners of properties smaller than five acres to live onsite.
Previously, short-term rental owners had to reside on the property, but this condition was eliminated in a recent vote. The change, which applies to units rented for less than 30 days, is a departure from the recommendations of the county’s Regional Planning Commission, which had raised concerns about the potential impact on denser neighborhoods. Despite those concerns, all seven Levy Court commissioners voted in favor of loosening the rules, marking a significant shift in how short-term rentals will be regulated in the county.
Two short-term rental owners in North Myrtle Beach, Lorrie White and Carlene Staley, have filed a lawsuit over the city's trash collection fees, claiming they are excessively high and violate state law.
The plaintiffs argue that short-term rentals are charged about 40% more than other residential properties for the same trash service, with no additional benefits to justify the difference.. The city started charging $80 per month for short-term rental trash collection in 2021, compared to just $24 for other residential properties. The plaintiffs contend that this system violates state law by exceeding actual costs and not being uniformly applied. They are seeking a refund of the overcharged fees, along with interest and legal costs.
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Genelaine Urbano
READ: Global Regulatory Notes (14)
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