🎯 STRisker: Bulletin - St. Louis, MO

Short-Term Rentals Face New Costs in St. Louis

St. Louis is once again in the spotlight over short-term rentals. After years of debate, lawsuits, and stalled regulations, city leaders are now pushing forward with a plan to tax these properties like hotels.

The proposal, known as Bill 126, advances out of committee in early February and now heads to the full Board of Aldermen for a vote. If approved, the ordinance would require short-term rental operators to obtain a city business license and pay a 3% fee on rent charged, due quarterly. Revenue would be directed into a new Affordable Housing License Fee Fund, created to support tenants and offset rising housing costs.

This move comes after a rocky history. In 2023, St. Louis passed a law requiring registration, inspections, and hearings for short-term rentals. But just before it took effect in 2025, a lawsuit challenged the ordinance as an illegal tax. A judge paused the law, leaving the city without enforcement power. Alderman Michael Browning says the pause led to “problem properties” popping up again, with noise complaints and disruptive parties returning to neighborhoods.

Supporters of the new tax say it’s about accountability. Alderman Bret Narayan, who sponsors the bill, points out that voters explicitly approved the idea through Proposition S in 2024. That measure allows short-term rental tax revenue to flow into affordable housing initiatives. “Make an attempt to offset some of those rising costs,” Narayan explains. Alderman Rasheen Aldridge, a co-sponsor, emphasizes that the bill targets bad actors, not the entire industry.

Residents like Steve Pona, who lives in the Southwest Garden neighborhood, welcome the move. Pona has long opposed short-term rentals, calling them “boutique hotels” that erode neighborhood vitality. “We would like to have those 300 houses filled with neighbors that bring vitality to the Southwest Garden neighborhood,” he says. For him, taxing rentals is a step toward treating them like commercial businesses.

Social Listening 🎧: Podcast

Policy talk doesn’t just happen in the news cycle—it can also live in long-form audio. STRisker’s Podcast Signal turns hours of episodes into actionable insight, indexing transcripts so you can surface key mentions of STRs, ordinances, and local decision-makers in seconds.

Create Your Watchlist - 14 Day Free Trial

But operators see things differently. Amanda McCracken, who owns Stonebridge Properties, says she already pays significant taxes. Her properties contributed more than $38,000 in tourism taxes last year, not including what guests spent at local restaurants and attractions. “I’ve already put the investment in, so yeah, it’s just a little bit frustrating that it’s just more money. It’s just more and more money,” she says. McCracken worries the added costs could force owners to sell properties meant for retirement.

Other operators argue that short-term rentals serve an important role. They provide lodging in neighborhoods without hotels and allow visitors to experience parts of the city beyond downtown. For families or groups seeking a more residential stay, these rentals are often the only option.

The city admits it doesn’t know how much revenue the tax would generate. Fiscal notes point to variables that remain unclear, including how many rentals are operating and how consistently they book guests. Estimates are difficult, especially since regulations remain tied up in court.

👍 We’d love your feedback.
We're always looking for ways to improve Bulletins.

Was this one useful to you? Other topics you'd like to see get covered?

✉️ Just reply directly to this email. We read and respond to every message!

-Will McClure
🙋 P.S.
Know someone else who should be reading this Bulletin? Feel free to forward this along. We want to make sure operators and stakeholders are aware of regulatory changes in their area.