Daily Regulatory Notes 10/07/2025
Cities address STRs. Ocean City, NJ discusses occupancy tax with Airbnb; Gallatin County, MT schedules public hearings; San Diego, CA pushes new tax; Wells, ME refines ordinance; Philipstown, NY reviews rules; Galveston, TX tightens rules. READ MORE.
Airbnb is ramping up pressure on Ocean City to repeal its new 3% occupancy tax, approved by a narrow 4–3 vote in July.
The tax applies only to short-term rentals booked through online platforms like Airbnb and Vrbo — not to hotels, motels, or real estate agency bookings. In its latest move, Airbnb accused Councilmen Pete Madden and Jody Levchuk of having conflicts of interest because of their real estate ties and ownership of rental properties, arguing they should have recused themselves from the vote. City officials, however, defend the tax as a fair way to raise $1.8 million in annual revenue without burdening property owners, noting that online platforms previously paid no local lodging taxes despite generating over $60 million in bookings last year.
Gallatin County will soon hold public hearings on a proposed zoning amendment that would define and regulate short-term rentals for the first time.
The draft ordinance to be discussed by the Planning Board on October 28 and the County Commission on November 18 would introduce specific standards for short-term rental operations while updating local appeals processes to meet state legal requirements. Both sessions will take place in the Gallatin County Courthouse in Bozeman, with virtual participation options available.
San Diego Councilmember Sean Elo-Rivera is pushing a new tax on second homes and full-time vacation rentals as a way to reduce the city’s structural budget deficit. Speaking at Politifest, Elo-Rivera said his office’s forthcoming proposal could raise between $100 million and $135 million annually from roughly 11,000 underused homes, including about 5,700 whole-home STRs.
The plan would target properties not occupied by San Diegans or rented long-term, directing revenue to the city’s general fund. A memo from Elo-Rivera’s office calls for the measure to be considered for the June 2026 ballot and estimates the funds could fully cover homelessness programs while supporting new housing development. A hearing before the council’s Rules Committee is expected Oct. 22.
Wells’ Select Board continues to refine its proposed short-term rental ordinance following its September 30 workshop, the third meeting focused on developing local rules for vacation rentals.
Board members reviewed 84 draft criteria aimed at addressing concerns over housing, neighborhood character, and enforcement. A major point of agreement was to prohibit short-term rentals in RV parks and private yards with parked RVs, with members emphasizing the need for clear definitions to uphold community standards.
Philipstown officials are moving forward with a new set of short-term rental rules that emphasize safety, accountability, and neighborhood protection.
During the Oct. 2 Town Board meeting, members reviewed a draft ordinance that would require annual permits for all short-term rentals and prohibit parties, limit stays, and mandate off-street parking. The proposal, developed by the town’s Short-Term Rental Committee, outlines five categories of STRs — from owner-occupied units to unhosted and corporate-owned tourist homes — with tailored limits for each. Unhosted rentals would be capped at 90 nights per year, while one-time rentals could last up to 14 consecutive nights. All STR owners would need at least $500,000 in liability insurance and pass an annual inspection. Violations could bring fines starting at $1,000 and escalating to permit suspensions or multi-year bans for repeat offenses.
The board has scheduled a workshop for Oct. 29 to refine the proposed ordinance before a formal vote.
Galveston officials are preparing to tighten oversight of the city’s 4,200 short-term rental properties through a proposed ordinance that would allow repeat violators to lose their rental licenses.
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The draft measure, scheduled for a City Council vote on Oct. 23, would establish a new Short-Term Rental Licensing Board empowered to recommend license suspensions or revocations after three documented violations within a year. The board, composed of senior city officials, could suspend a license for up to six months and recommend permanent revocation after subsequent offenses. Property owners would be required to reapply for a license before resuming rentals, and decisions could be appealed to the city manager. The proposal follows months of resident complaints about noise, trash, and parking problems linked to vacation rentals.
In case you missed it:
Genelaine Urbano
Dane Artisola
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