Daily Regulatory Notes 11/04/2025
Cities address STRs. New York proposes bill; Bismarck, ND approves ordinance; Lansing, MI introduces 3% tax; San Diego, CA proposes tax; Princeton, NJ & Newton, MA review enforcement; Imlay City, MI approves rules; Simi Valley, CA urges crack down; Boston, MA; Bath Township, OH. READ MORE.
New York
A new bill before New York City Council is reigniting the Airbnb debate by proposing to loosen parts of Local Law 18, the 2022 measure that sharply restricted short-term rentals.
Granicus, Inc.
Intro 948, introduced by Councilmember Mercedes Narcisse, would allow one- and two-family homeowners to rent out their properties without being present, a change Airbnb calls a “balanced fix.” But in Hell’s Kitchen—where illegal hotel conversions have long displaced tenants—residents and housing advocates warn it would reopen loopholes that gutted the city’s housing stock before.
Bismarck officials have formally approved an ordinance defining short-term rentals as stays under 30 days, distinguishing them from long-term rentals for tax and regulatory purposes.
The move doesn’t add new restrictions but clarifies existing rules to ensure consistency across platforms like Airbnb and VRBO. Short-term rental operators must maintain a residential appearance, provide adequate parking, and comply with local noise and building codes. City planners say no additional regulations are planned but remain open to community feedback.
Michigan lawmakers are weighing new legislation that would let local communities impose a 3% tax on short-term rentals to help offset tourism-related infrastructure costs.
Introduced by Rep. Mark Tisdel, the proposal would require voter approval and apply to hotels, motels, and homestays like Airbnb. Tisdel says the idea came from within the STR industry itself and mirrors policies in other states. Unlike broader past proposals, this version focuses solely on taxation and may have stronger bipartisan support.
San Diego is debating a proposed $5,000-per-bedroom annual tax on short-term rentals and vacation homes, aimed at freeing housing for locals and generating up to $135 million annually.
Supporters say it would curb investor-owned properties and benefit residents, while opponents warn it could force “mom-and-pop” hosts out of business, hurt tourism, and have limited impact on housing availability.
Princeton councilors continue to weigh how to regulate short-term rentals, debating whether to phase out nonresident operators over 24 months or permanently grandfather existing hosts.
Supporters of the phase-out, like Councilmember Leighton, say it’s the fairest way to restore balance to the housing market and prioritize local residents over investors. Others favor a slower rollout with more data collection before enforcing owner-occupancy rules. The council plans to review a draft ordinance and hold another work session before making a final decision.
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Imlay City has approved new rules for short-term rentals, capping the number of allowed units at five within residential areas.
Rentals will be permitted only in select zoning districts with a special land use permit and must provide adequate parking. City leaders say the ordinance aims to keep rentals under control while addressing concerns about noise and nuisance issues. Commissioners plan to enforce violations by revoking licenses if owners break the rules.
Simi Valley residents are urging city leaders to crack down on what they say are dozens of illegal short-term rentals operating across town, pointing to safety issues, noisy parties, and “neighborhood hotels.”
The debate intensified after Gov. Gavin Newsom signed SB 346, a new state law giving cities the power to demand property data from Airbnb and Vrbo, enforce licensing, and audit tax collection. City officials say the new law will guide development of a local ordinance, while residents remain split between calls for a citywide ban and arguments for better enforcement of existing laws.
Newton officials say enforcement of the city’s short-term rental ordinance remains a major challenge despite new rules passed earlier this year.
Out of roughly 200 state-listed STRs, only 14 are registered with the city—and nearly half of those are in violation. The Inspectional Services Department has issued 17 cease-and-desist letters and is exploring higher fines of up to $2,000 per day to deter illegal operators. Council members are also considering using AI tools to help identify unregistered rentals as the city works to tighten enforcement.
Boston councilors questioned city enforcement of the short-term rental ordinance on Oct. 30, highlighting challenges with exemptions, platform workarounds, and documentation that ISD must accept.
Officials said the ordinance has reduced listings by up to 56%, but gaps remain, including tracing hospital and corporate exemptions, delays in listing takedowns, and limited staff capacity. Councilors and ISD staff discussed tactics used by hosts to skirt rules, including multi-week corrections, 29-night minimums, and corporate contracts.
An unauthorized party at a Bath Township Airbnb ended in gunfire over the weekend, reigniting concerns about safety at short-term rentals.
Police say a group of mostly minors gathered for a birthday party promoted on social media before shots were fired inside the home. Airbnb said the incident violates its global party ban and reiterated that listings found to host disruptive gatherings face suspension or removal.
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Genelaine Urbano
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