Weekly Regulatory Briefing (9)

Each week, we bring together the biggest updates in short-term rental regulations from coast to coast. Whether it’s fresh local regulations, emerging trends, or major discussions, our briefing provides all you need to stay in the know.

🏡 Top Stories This Week

• 📒 Gallatin County, MT: A group of Gallatin County property owners has filed a motion for a restraining order against the county alleging it abruptly changed its zoning interpretation to ban short-term rentals without going through the proper rule-making process.
• ✉️ Billings, MT: Billings city officials will begin sending courtesy letters the week of March 10 to over 300 short-term rental owners operating without the required permits.
• 💼 Traverse City, MI: The Michigan Court of Appeals ruled in favor of Traverse City Tourism (TCT) in its lawsuit against Golden Swan Management affirming that property management companies overseeing 10 or more short-term rental units must pay assessments to local convention and visitors bureaus (CVBs).

🌍 Regional Highlights

• 🥥 Hawaii: Hawaii lawmakers are advancing HB1077 and SB1396 – bills that would embed a new Green Fee into the state’s transient accommodations tax further increasing hotel and short-term rental costs.
• 🏗️ Washington: A proposed Washington state bill would impose a 6% tax on short-term rental bookings to help fund affordable housing has sparked opposition from Airbnb and local hosts.
• 🎧 Arkansas: Arkansas lawmakers are considering a bill that would prevent cities from banning or capping short-term rentals while allowing local zoning rules and basic health and safety regulations.

Daily Regulatory Notes 02/26/2025

Cities address STRs. Arkansas considers bill; Arizona proposes regulations; Aspen, CO reviews enforcement; Nantucket, MA & Traverse City; MI handle lawsuit; Sandwich, MA introduces new procedures; West Fargo, ND proposes ordinance. READ MORE.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

• 🏘️ Arizona: Northern Arizona mayors are pushing for new short-term rental regulations after meeting in Prescott to address housing shortages and community concerns.

📜 New Ordinances Approved

• 👪 Anna Maria, FL: The Anna Maria City Commission unanimously approved new occupancy-based vacation rental registration fees, effective April 1 through March 31, 2026.
• ✏️ Norfolk, VA: Norfolk City Council has officially banned short-term vacation rentals in the West Freemason Historic and Cultural Conservation zoning districts, reversing a 2020 amendment that previously allowed them under a Conditional Use Permit.
• 🚗 Alexandria, VA: Alexandria City Council has passed new short-term rental regulations requiring operators to obtain permits and meet occupancy, parking, and fire safety standards.

💬 Catch Up on Discussions

• 🔢 Austin, TX: The Austin City Council voted on a series of significant changes to short-term rental regulations, including a requirement for all STR listings to display a city permit number, ensuring compliance with licensing rules.
• ⛰️ Lewisville, TX: Lewisville officials are exploring density-based regulations for short-term rentals as they prepare to lift an interim ban on March 4.
• 🏖️ Cocoa Beach, FL: Cocoa Beach is significantly increasing short-term rental fees in single-family neighborhoods raising application costs from $525 to $2,500 and annual renewal fees from $325 to $1,500.
• 📉 Cayuga County, NY: Cayuga County is considering an amendment to its occupancy tax law to require all short-term rental operators to register and collect taxes addressing compliance issues with platforms like Airbnb and VRBO.
• 🚓 Lafayette, LA: Lafayette officials are enforcing the city’s short-term rental ban in residential neighborhoods with property owners now facing compliance hearings for continued violations.
• 🏡 Carson City, NV: Carson City is evaluating potential short-term rental regulations to address concerns about housing supply and neighborhood impacts.
• 📓 Nevada City, CA: Nevada City officials are considering updates to their 2015 short-term rental ordinance with discussions centered on balancing community concerns and economic benefits.
• 🍍 Pinellas County, FL: Pinellas County is considering code changes that would remove the current 10-person occupancy cap on short-term rentals, no longer count children under 12 toward occupancy limits, and adjust quiet hours from 10 p.m.–9 a.m. to 11 p.m.–7 a.m.
• 🚲 Summit Park, UT: Summit County officials are drafting new short-term rental regulations after Summit Park residents raised concerns about year-round nuisances including excessive trash, traffic, and safety risks.
• 🚪 Missoula, MT: Missoula has seen a significant rise in registered short-term rentals after its new regulations took effect in December 2024, requiring a city-issued registration number on hosting sites.
• 🗺️ New Orleans, LA: A recent zoning board ruling in New Orleans removed the requirement for hotels to maintain on-site staff at all hours, citing a lack of clear language in city ordinances.
• 🖨️ Boston, MA: A Massachusetts law allowing accessory dwelling units (ADUs) by right in single-family zones took effect Feb. 2, following a six-month regulatory process.
• 📎 Aspen, CO: Aspen City Council reviewed the city’s short-term rental program discussing financial impacts, permit availability, and regulatory refinements.
• 📍 Nantucket, MA: A Massachusetts Land Court judge is set to decide whether a Nantucket homeowner’s short-term rental violates local zoning laws after closing arguments concluded in a case that could set a precedent for the island.
• 📜 Sandwich, MA: The Town of Sandwich has introduced new short-term rental procedures in alignment with the Massachusetts State Building Code.
• 📇 West Fargo, ND: West Fargo is considering a new ordinance requiring short-term rental owners to obtain an annual license and pass a safety inspection.
• 👨‍⚖️ Dallas, TX: Dallas officials are seeking a rehearing from the full appeals court after a three-judge panel upheld a ruling that blocked the city’s short-term rental restrictions in single-family neighborhoods.
• 📅 Madison, NH: The Madison Zoning Board of Adjustment has imposed new restrictions on short-term rental owners who previously won a court case against the town, limiting rentals to 15% more than the highest number of days the property was rented in a single year.

Let’s Explore: Emerging Trends 🌱

Communities are responding to changes in the short-term rental (STR) landscape by enforcing stricter rules, advancing statewide policies, and working to minimize neighborhood disruptions, reflecting the ongoing evolution of STR regulations.

What this means:

⚖️ Legal Challenges and Zoning Conflicts: Cities and counties are increasingly facing legal disputes over short-term rental regulations, as seen in Gallatin County, MT where property owners are challenging sudden zoning changes. Similarly, Dallas, TX continues its legal battle over restrictions in single-family neighborhoods, and Nantucket, MA awaits a court ruling that could set a zoning precedent for the island. These cases highlight the ongoing friction between local governments seeking to regulate short-term rentals and property owners fighting for their rights.

💹 New Taxes and Fee Increases: States and municipalities are implementing new taxes and higher fees on short-term rentals to address housing affordability and infrastructure costs. Hawaii lawmakers are advancing a bill to incorporate a Green Fee into the transient accommodations tax, while Washington is considering a 6% tax on short-term rentals to fund affordable housing. Meanwhile, Cocoa Beach, FL, and Anna Maria, FL have significantly increased registration and renewal fees signaling a growing trend of using taxation to manage and regulate the industry.

📓 Stricter Compliance and Permit Requirements: More local governments are ramping up enforcement and tightening permit regulations to ensure compliance with short-term rental laws. Billings, MT is issuing notices to unpermitted operators, Alexandria, VA now requires permits with occupancy and safety standards, and Norfolk, VA has outright banned rentals in certain historic districts. Other cities, such as West Fargo, ND, and South Haven, MI are refining their licensing and inspection processes, demonstrating a push toward stricter oversight and enforcement.

📅 Future Meetings and Public Hearings/Comments:

• Lewisville, TX: City staff will present a recommendation on March 3, while a public input process on long-term regulations is expected to take several months.

• Ontario, OR: The Ontario Planning Commission is set to review a draft ordinance on short-term rentals during its upcoming March 10 meeting with the possibility of forwarding it to the City Council for consideration.

• South Haven, MI: The South Haven City Council has unanimously voted to send a revised short-term rental ordinance to the Planning Commission for an expedited review with a public hearing scheduled for March 3.

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