This week's update covers new laws, permit requirements, and regulation news for hosts in:

• Dallas, Texas

• Columbia, Missouri 

• Buffalo, New York

• Maui, Hawaii  

• San Antonio, Texas 

• Queen Creek, Arizona

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Dallas

A judge has blocked Dallas from enforcing a new ordinance that would have banned most short-term rentals (STRs) in single-family areas. The Dallas City Council had voted 8-7 in June for this ordinance, set to start on December 13. The Dallas Short Term Rental Alliance sued, claiming the regulations were unconstitutional and discriminatory against STR owners. The ordinance was a response to complaints linking some STRs to gun violence and other issues. District Court Judge Monica Purdy issued a temporary injunction, stating the plaintiffs would likely win their case and that enforcing the ordinance posed a risk of irreparable harm to them. The injunction prevents the city from enforcing the ordinance until the trial in June 2024, although the city can appeal the ruling.

Columbia

Columbia's Planning and Zoning Commission is considering new regulations for short-term rentals (STRs) regulations, which have raised concerns among local stakeholders. The proposed ordinance aims to regulate the number of STRs an individual can own and the duration they can be rented out. Currently, over 300 STRs operate in Columbia but are deemed illegal under existing laws. The draft ordinance introduces a three-tier system for STRs, limiting rental days to 30, 120, or more than 120 days, depending on the tier. Critics, including the Columbia Apartment Association and the Columbia Board of Realtors, argue that the regulations are overly complex and could inadvertently lead to rule violations. They also express concerns that the proposed limits on rental days could make STRs financially unviable. A city survey showed that most residents opposed regulations on the number of STR licenses and rental day limits. The city suggests STR owners also consider long-term rental licenses for rentals over 30 days. The public hearing on this matter is set to discuss these concerns further.

Erie County

Erie County has passed a new law requiring a 3% occupancy tax on short-term vacation rentals, similar to the tax paid by hotels and motels. This tax, applied to rentals found on platforms like Airbnb and Vrbo, aims to capitalize on the growing market of short-term vacation rentals and support local tourism promotion efforts. The tax is primarily targeted at visitors, not local property taxpayers. The county expects this tax to generate approximately $1 million to $2 million annually. Property owners listing on major hosting platforms will not be burdened with tax collection, as the county plans to reach agreements with these platforms for tax collection. The law exempts month-to-month residential leases and primary residences from the tax. The new regulation aligns Erie County with other counties that already tax residential vacation rentals, aiming to create a fair playing field in the tourism sector. Property owners must register their rental properties with the county and face penalties for non-compliance.

Maui

The Maui County Council is advancing a proposal for tax breaks to encourage owners of short-term rentals to provide long-term housing for survivors of the August wildfires. Mayor Richard Bissen's Bill 131, which passed its first reading, offers significant tax exemptions through fiscal year 2025 for properties converted to long-term rentals for at least 12 months for those who lost homes in the fires. The county needs to find housing for about 2,700 families, including 6,516 individuals temporarily housed in hotels. There are over 13,000 transient vacation rentals and nonowner-occupied units in South and West Maui, many of which are vacant. The bill includes protections against evicting current long-term tenants to exploit new tax breaks. If insufficient short-term rental owners participate, the county plans to increase taxes for those not converting to long-term rentals. The final reading of the bill is scheduled for December 15.

San Antonio

San Antonio is updating its 2018 Short Term Rental ordinance due to concerns about a large number of non-permitted renters. The city has two types of short-term rental permits: Type 1 for primary residences with no density cap and Type 2 for properties not occupied by the owner, which has a 12.5% density cap. The update comes after short-term rental owners raised safety concerns. A task force created by the Planning and Community Development Committee will address issues like permit compliance, Hotel Occupancy Tax (HOT) compliance, enforcement strategies, event and party violations, permit fees, and obligations of rental platforms. The current ordinance requires rentals under 30 days to secure a permit and pay monthly HOT tax. The task force aims to ensure safety in neighborhoods and enforce responsibilities on rental platforms. The first public meeting of the task force is scheduled for January 4th.

Queen Creek

In November, Queen Creek softened its short-term rental rules, contrasting with regional efforts to tighten them. This followed Arizona's 2022 legislation allowing local control over these rentals. Initially, Queen Creek's ordinance required a business license and annual registration, but after council debate and public input, it was amended. The revised ordinance eliminates the business license and registration fees, making it a one-time, free registration. This change leads to a $6,000 annual revenue loss for the town, matching its expenditure on rental tracking and outreach.