Daily Regulatory Notes 12/11/2024

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. 📰

Washington County, UT

As short-term rental listings in Washington County climb to nearly 3,700, the local housing market is under increasing strain. Experts and officials cite a significant affordability gap as STR growth reduces the supply of long-term rentals, forcing many families and young residents to leave the area.

Local leaders like Shawn Guzman of St. George emphasize the need for localized STR regulations to ensure housing programs benefit permanent residents, not rental markets. Balancing the region’s booming tourism industry with the housing needs of its workforce remains critical to the county’s economic and social stability.

Mary Esther, FL

After months of debate, Mary Esther City Council has chosen to focus on creating a business tax receipt program to track short-term rentals instead of enacting a previously proposed ordinance.

The council’s discussion on Dec. 9 stemmed from a long deliberation process that began in August 2023 and included several ordinance drafts. Mayor Chris Stein has directed staff to draft a tax receipt program for future consideration.

Buffalo, NY

Buffalo has enacted a 60-day moratorium on special-use permits for non-owner-occupied short-term rentals in residential and single-family zones, aiming to address neighborhood tensions caused by an influx of unregulated rentals. The moratorium exempts owner-occupied rentals, renewals of existing permits, and applicants who reside within the city.

During this pause, lawmakers plan to amend the Green Code, proposing limits on the number of non-owner-occupied rentals per person or business, tighter restrictions in historic districts, and enhanced disclosure requirements for business-owned properties. The city is also cracking down on unlicensed rentals, with cease-and-desist orders already issued to violators.

Myrtle Beach, SC

US Short Term Rental Regulation Updates 12/4/2024

Communities tackle short-term rental challenges with new measures. Escondido, CA, proposes a school buffer; The Dalles, OR, strengthens occupancy limits; Eau Claire, WI, debates stay minimums; and Waukegan, IL, revises fines and fees while retaining distance requirements for balance.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

Myrtle Beach City Council has permanently prohibited the conversion of hotels and motels near the ocean into apartment-style complexes. On December 10, 2024, the council unanimously approved a new short-term rental overlay ordinance after allowing for public comment.

Frankfort, KY

In a 5-0 vote, Frankfort adopted new short-term rental regulations, focusing on zoning limits, licensing, and enforcement. The ordinance caps non-owner-occupied rentals to 5% of residences in the Special Capital District and eight units in the Special Historic Districts.

Owners must pay a $250 annual license fee and face escalating penalties for violations, including potential license revocation for non-compliance. Private and commercial events exceeding occupancy limits are prohibited, while owner-occupied rentals are limited to 24 days of non-resident operation annually. The Board of Zoning Adjustment will evaluate factors like neighborhood impact and compliance history when approving conditional-use permits.

Sussex County, DE

Sussex County is moving to expand its 3% lodging tax to include short-term rentals listed on platforms like Airbnb and VRBO, aligning with recent state legislation that introduced a 4.5% state tax on such rentals. Currently applied to hotels and motels, the county's lodging tax has generated $3.4 million since 2020, funding projects like beach nourishment and waterway dredging.

The proposal, introduced on October 29, comes as the county grapples with over 1,000 short-term rental listings and seeks to address the long-standing push for tax parity from the hotel industry. A public hearing is scheduled for December 10, offering residents a chance to weigh in on the measure.

Check out House Bill 168 attached below.

Marin County, CA

Marin County is now accepting license applications for short-term rentals under new regulations aimed at addressing community concerns. The updated ordinance, approved by the Board of Supervisors in January, caps licenses at 1,200 for properties in unincorporated areas and limits operators to one license each, which must be renewed every two years.

Focused largely on West Marin's coastal communities, the licensing program seeks to mitigate issues like noise, trash, parking, and ensure adequate water, septic, and emergency services. A $50 application fee applies, and licenses will be distributed via a lottery for applications received by December 31, 2024. Additional applications will be waitlisted.