Daily Regulatory Notes 12/29/2025

Rhode Island

A package of new Rhode Island laws takes effect January 1, 2026, bringing changes to wages, workplace rules, short-term rental taxes, and consumer data privacy.

The minimum wage rises to $16 per hour, employers must provide written employment terms at hiring, and short-term rentals face expanded state and local tax requirements. The state also implements a new data privacy framework giving residents greater control over personal information.

Michigan

A nationwide short-term rental platform is challenging a Michigan tax audit that claims HomeAway owes nearly $18.7 million in unpaid use taxes and interest.

HomeAway contends that tax remittance obligations fall on individual property owners, even when taxes are collected at booking, and denies any unjust enrichment.

Washington

Washington will introduce a new accommodation tax framework in early 2026, increasing lodging costs for hotels and short-term rentals.

The move aligns Washington with states like California, New York, and Hawaii that are expanding lodging taxes to support visitor amenities and community needs. Travelers can expect slightly higher nightly costs.

Arizona

A unanimous Arizona Court of Appeals ruling reinforced limits on local control over short-term rentals, striking down Sedona’s attempt to block mobile home park conversions.

The 2017 law (SB 1350) bars cities from banning or broadly restricting STRs, even as housing shortages worsen. While STRs generate billions in tourism revenue and support hundreds of thousands of jobs, critics warn investor-owned rentals worsen affordability.

Two Rivers, WI

The Two Rivers City Council unanimously approved a series of fee increases, including higher costs for short-term rental licenses and emergency medical services.

Short-term rental licenses now cost $175, up from $150, with an additional contract fee rising to $35. The ordinance also introduces a new harbor sludge tipping fee and caps residential and commercial building inspection fees.

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Anchorage, AK

Anchorage has approved a citywide short-term rental registration system that will take effect in May, giving officials detailed data by next summer on where and how STRs operate.

Leaders say the registry is a first step toward understanding STR impacts on housing, especially in Girdwood, where local officials estimate about a quarter of homes are used as vacation rentals at some point each year.

Ocean City, MD

Ocean City’s short-term rental debate remained one of the area’s most consequential stories of 2025, even after voters narrowly rejected new STR restrictions in a July referendum.

Despite the vote, the City Council later extended the moratorium on new STR licenses in R-1 and MH districts. The same group that forced the referendum is now pursuing another petition drive to challenge the extension, with a Jan. 20 deadline to submit 990 valid signatures.

Santa Fe County, NM

Santa Fe County has stepped up enforcement of its short-term rental rules, filing petty misdemeanor charges against at least 15 property owners since July for operating without proper registration or licensing.

County officials say criminal cases are a last-resort tool made possible by increased staffing and improved tracking software. All cases have been dismissed once owners came into compliance, though some led to arrest warrants when owners failed to appear in court.

Columbia, PA

Columbia Borough Council held an extensive Dec. 23 discussion on proposed 2026 fee changes and zoning issues, including how to handle appeals, nonprofit application fees, and commercial building permits.

Council debated adopting a tiered permit fee structure for large commercial projects but deferred action pending further review. Short-term rental concerns also surfaced, with residents opposing a proposed STR on Chestnut Street over parking and neighborhood impacts, prompting staff to review parking enforcement and ordinance language.

Buellton, CA

Buellton City Council has postponed action on Ordinance No. 25-06, which would remove long-term housing status from motel units along Avenue of Flags and require them to operate as short-term rentals.

The delay awaits guidance from the California Department of Housing and Community Development. City officials say the ordinance supports a 2017 redevelopment plan and addresses complications from long-term occupancies.

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Weekly Regulatory Briefing (51)

The Week’s STR Highlights. Maui County, HI approves bill; Clark County, NV halts enforcement; Massachusetts proposes bill; Arizona pushes revision; New Jersey introduces bill; Washington County, TN implements new lodging tax; Coconino County, AZ; Los Angeles, CA; Melbourne Beach, FL. READ MORE.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

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