Bill Description: Senate Bill 1263 would allow counties and cities to impose registration on short-term rental owners and to require a license, permit, or certification to operate a short-term rental if the owner grosses $10,000 or more per year or has a financial interest in four or more units. 

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NOTE: Senate Bill 1263 and House Bill 583 (2026) both deal with short-term rentals, but House Bill 583 is the better bill. 

Does it increase barriers to entry into the market? Examples include occupational licensure, the minimum wage, and restrictions on home businesses. Conversely, does it remove barriers to entry into the market?

Senate Bill 1263 would amend Section 67-6539, Idaho Code, which limits the regulations counties and cities can place on short-term rentals. It would clarify some language regarding “reasonable regulations” and add a list of allowable safety regulations.

The bill would add language explicitly allowing a county or city to require a license, permit, or certification to operate a short-term rental if “a property owner owns or has a financial interest in four (4) or more short-term rentals within the jurisdiction, including units held by commonly controlled entities, trusts, partnerships, or affiliates” or “a short-term rental generates ten thousand dollars ($10,000) or more in gross annual short-term rental revenue, defined as the total amount paid by occupants for lodging before any deductions for expenses, commissions, fees, taxes, or costs of operation during a calendar year.” 

Even at a modest $250/day average, it would take only 40 days of renting a unit within a year to eclipse this threshold.

The bill also says that “a county or city may require owners of short-term rentals who do not have a license, permit, or certification to register annually and to designate a local contact person and may charge a reasonable administrative fee.”

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