Daily Regulatory Notes 10/08/2025
Cities address STRs. McKinney, TX updates HOT; Lenox, MA refines bylaw; New Orleans, LA upholds regulations; Hilton Head Island, SC drafts regulations. READ MORE.
McKinney has updated its hotel occupancy tax ordinance to include Vrbo listings, ensuring all short-term rentals pay the same 13% rate already applied to Airbnb and hotels.
Approved by City Council on Sept. 2, the amendment closes a long-standing gap that prevented automatic tax collection from Vrbo. City officials say the change “levels the playing field” and simplifies revenue tracking. McKinney collected more than $3 million in hotel occupancy taxes last fiscal year, with Airbnb ranking as the city’s second-largest generator after hotels.
Lenox officials are refining their short-term rental bylaw ahead of a Nov. 6 special town meeting, with new inspection and registration requirements drawing mixed reactions from property owners. A public hearing scheduled for Oct. 9 aims to clarify the proposed changes.
Short Term Rental By-law and Registration
About 100 short-term rentals are registered in Lenox, with roughly 70 more operating, according to state data. The bylaw maintains existing limits of 31 consecutive rental days and 75 total days per year, with owners able to seek special permits for up to 110 days. New state building codes have added to the uncertainty, requiring sprinklers and varying inspection schedules depending on whether the property is owner-occupied.
The Fifth Circuit Court of Appeals has upheld most of New Orleans’ short-term rental regulations but struck down the city’s rule banning corporate ownership of STRs.
The Oct. 7 decision allows companies, not just individuals, to hold STR permits, which city officials warn could undermine the “one per owner” limit if property owners create multiple LLCs. The court said the rule unlawfully discriminates against business entities, citing a 2014 Supreme Court precedent recognizing corporations as legal forms of human enterprise. However, judges reaffirmed the city’s authority to regulate STRs, including host-on-site requirements and advertising rules.
Hilton Head Island officials are shifting from talk of a rental moratorium to drafting tighter regulations for the island’s roughly 7,000 short-term rentals.
This week, the Community Services and Public Safety Committee emphasized that a total ban was never under serious consideration but agreed new measures are needed to address neighborhood concerns. Residents opposing STRs described them as a “nuisance,” citing parking, noise, and overcrowding, while hosts argued that most owners are responsible and contribute to the local economy. The committee is now exploring updates related to occupancy limits, parking, fire codes, fees, and floor plan submissions. After hearing from more than 50 speakers, the panel unanimously voted to forward a revised ordinance to the Town Council, which will review the proposal on Oct. 13.
In case you missed it:
Genelaine Urbano
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