This bill amends two sections of the Idaho Code to establish clearer regulations regarding short-term rentals. In Section 67-6539, the bill prohibits counties and cities from enacting ordinances that effectively ban any type of short-term rentals, while allowing them to implement reasonable regulations that do not impose different restrictions on short-term rentals compared to single-family dwellings. The bill also specifies that short-term rentals will be classified as non-transient residential uses for zoning and building code purposes. Additionally, it outlines specific safety requirements that local governments can mandate for short-term rentals, such as smoke alarms and fire extinguishers, while prohibiting any licensing or registration requirements for operating short-term rentals.

In Section 63-1804, the bill limits the tax duties of short-term rental marketplaces and their owners, stating that local governments cannot levy certain taxes on the operation of these marketplaces. It requires short-term rental marketplaces to register with the state tax commission for tax collection and reporting, and mandates that they collect and remit taxes imposed on short-term rentals. Furthermore, if a rental owner operates without a marketplace, they must comply with the same tax requirements as the marketplaces. The bill declares an emergency, making it effective from July 1, 2026.

Statutes affected:
Bill Text: 67-6539, 63-1804