Weekly Regulatory Briefing (1) 01/02/2026

🏡Top Stories This Week

• Houston, TX: Two teenagers were shot during a large party at a short-term rental in Houston’s Third Ward, renewing concerns over party houses as the city prepares to enforce new STR rules.

🌍 Regional Highlights

• 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.
• 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.
• Washington: Washington will introduce a new accommodation tax framework in early 2026, increasing lodging costs for hotels and short-term rentals.
• 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.
• Hawaii: A federal court ruling will allow Hawaii’s expanded “Green Fee” to take effect on January 1, 2026, extending the Transient Accommodation Tax to cruise passengers for the first time.

📜 New Ordinances Approved

• 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.
• Anchorage, AK: Anchorage has approved a citywide short-term rental registration system that will take effect in May.

💬 Catch Up on Discussions

• 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.
• 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.
• 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.
• 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.
• Houston, TX: Houston’s new short-term rental ordinance is drawing criticism from both operators and residents as enforcement begins Jan. 1.
• Birmingham, AL: Birmingham is expected to revive debate on short-term rental regulations in early 2026 after the issue stalled amid elections and council turnover.
• Chicago, IL: Chicago tourism leaders and major hotel owners are pushing to create a Tourism Improvement District funded by a 1.5% self-imposed hotel surcharge to boost convention demand.
• Three Oaks, MI: Three Oaks aunches waitlist for short-term rental licenses in R-1 residential zones at 1:11 p.m. on Jan. 1, 2026, as the village maintains a 10% cap on licenses in the district.
• Decatur, AL: Decatur’s Planning Commission unanimously advances a long-awaited short-term rental ordinance to City Council, moving the city closer to regulating rentals that currently operate illegally.
• Fort Myers, FL: The Town of Fort Myers Beach announces increased enforcement against unregistered short-term rentals, identifying about 500 properties currently operating without approval.
• Clark County, NV: Clark County short-term rental owners secure temporary relief after a federal judge grants an emergency injunction pausing fines and citations tied to the county’s enforcement program.
• Grand Island, NE: Grand Island officials are weighing a proposal to raise the hotel occupation tax to 5%, impacting hotels and short-term rentals, after a state law change removed local tax caps.
• Yukon, OK: Yukon City Council approves amendments tightening short-term rental enforcement, requiring operators who previously rented without a permit or license to wait at least one year before reapplying, following a unanimous Dec. 16 vote.
• Charlottesville, VA: Charlottesville begins refining its short-term rental regulations, focusing on enforcement and safety rather than expanding or restricting where homestays are allowed.
• Ontario County, NY: An Ontario County town is seeking state approval to impose a 3% occupancy tax on hotels and short-term rentals, asking lawmakers to authorize the measure through new legislation.
• Nantucket, MA: Nantucket voters move to resolve years of uncertainty around short-term rentals by approving a zoning bylaw that explicitly legalizes them as a principal use in all residential districts.
• Stowe, VT: Stowe’s push to address housing affordability increasingly centers on regulating short-term rentals, as data from the town’s new registry shows most listings are owned by non-residents.
• Cape Coral, FL: Cape Coral implements new rental registration rules effective Jan. 1, 2026, requiring all residential rental properties to register annually, with fees set at $350 for short-term rentals and $35 for long-term units.

📲 Social Buzz

📅 Future Meetings and Public Hearings/Comments:

• Hawaii

• Soldotna, AK: Soldotna City Council introduces two ordinances that would change how short-term rentals are permitted and taxed, with public hearings scheduled for Jan. 14.

• Madera County, CA: Madera County delays its Planning Commission hearing on a proposed short-term vacation rental ordinance to Feb. 4, 2026, pushing back from an earlier January date to allow more time for public review.

🖱️ Click of the Week: See What Everyone’s Reading

Short-term rental company sues Michigan over $18.7M tax bill

The tax fight comes amid a separate, but related, years-long fight in communities across the state and in the Legislature over how to best regulate and, in some cases, tax short-term rentals, which…

The Oakland PressThe Detroit News

Short-term rental company sues Michigan over $18.7M tax bill

HomeAway, which operates Vrbo, is suing Michigan over an $18.7 million tax bill, arguing that short-term rental hosts are responsible for collecting and remitting state use taxes. The lawsuit challenges a state audit that found HomeAway liable for taxes collected during bookings from 2020 to 2022.

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