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

• Michigan

• St. Petersburg, Florida

• Colorado

• Long Beach, California 

• Wilmington, Vermont

• Hawaii

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This week's newsletter delves into the evolving landscape of short-term rental regulations across the U.S., from Michigan’s proposed new taxes and safety regulations to mitigate tourist impacts while Pinellas County and St. Petersburg tighten oversight to manage rising corporate interests in rentals. Colorado debates, but ultimately rejects, a tax increase on rentals, reflecting widespread concern over housing affordability. Long Beach seeks to amend STR regulations following a public safety incident, and Wilmington updates its STR laws to better integrate into the community fabric. Meanwhile, Hawaii is considering radical measures to phase out short-term rentals in response to a severe housing crisis.

Michigan

Michigan's House of Representatives is considering a series of bills (HB5437-5446) that would impose new regulations on short-term rentals, including a 6% excise tax in addition to the existing use tax. This legislative effort, supported by tourism-dependent cities but opposed by realtors, aims to help local governments offset infrastructure costs due to tourists. The proposed measures include mandatory $1 million liability insurance, essential safety features, and a $100 annual registration fee per listing. These regulations are intended to address issues such as housing affordability impacted by short-term rentals and ensure compliance with local zoning laws. The debate highlights the tension between preserving homeowner rights and addressing community needs.

St. Petersburg

Officials in Pinellas County and St. Petersburg, Florida, are stepping up oversight of the booming short-term rental market, driven by increasing corporate involvement. Discussions focus on implementing registration requirements and enhancing penalty measures for non-compliance. Despite state laws limiting local regulatory powers, Pinellas County is considering ordinance changes to require annual registrations, with proposed fees and significant fines for violations. St. Petersburg is also exploring a registration system and possibly imposing "super fines" for breaches. These moves aim to manage the growing impact of short-term rentals amidst rising tourism and changing ownership from individuals to investment groups.

Colorado

Colorado's Senate Finance Committee rejected Senate Bill 33, which proposed taxing short-term rentals as commercial properties if rented for more than 90 nights a year. The bill, aiming to increase tax revenues for mountain communities heavily impacted by tourism, failed in a bipartisan 6-to-1 vote. Proponents argued it would support local infrastructure and schools, while opponents feared it would diminish tourism and reduce rental availability. Despite adjustments to appease rental owners, the bill was not passed. The issue remains contentious as many Colorado resort towns continue to struggle with housing affordability exacerbated by the rise of vacation rentals.

Long Beach

Long Beach City Council has approved a review and potential revision of its short-term rental (STR) regulations in response to safety concerns highlighted by a shooting at an Airbnb. The new measures aim to improve compliance and enforcement, including requiring STR operators to register annually, with hopes to mitigate negative community impacts. The proposal follows substantial public input, reflecting deep community divisions around STRs. Proposed changes include doubling the penalty for violence on properties and enabling stricter enforcement actions against non-compliant operators. Further, the city may revise STR-related fees as part of its 2025 budget, pending additional council readings and Coastal Commission approval.

Wilmington

The Select Board of Wilmington unanimously approved updated regulations on short-term rentals (STRs), defining STRs distinctly from lodging and adjusting district-specific permissions. STRs are now rentals of less than 30 days, used over 14 days a year, while lodging includes more traditional accommodations like hotels and B&Bs, now restricted in residential areas. The changes permit smaller STRs in village areas without extensive approvals but impose stricter controls on larger operations. These regulations aim to balance property rights with community concerns amidst debates over their impact on local housing availability and community character. The ordinance takes effect 21 days from the April 2 meeting, with a transitional period for existing STRs to comply without penalty.

Hawaii

Hawaii is facing a severe housing crisis, prompting lawmakers to propose phasing out short-term rentals to make housing more accessible for locals. Two bills, HB1838 and SB2919, aim to give counties the authority to regulate transient accommodations differently by potentially limiting short-term rentals. These measures are seen as vital in regions overwhelmed by tourists, affecting local housing availability and infrastructure. Despite the potential for economic impact and opposition from various stakeholders, proponents believe these regulations are crucial for preserving community spaces and ensuring long-term housing availability. The legislative process is ongoing, with final decisions expected by May 3.