Bill Description: Senate Bill 1162 would clarify how Idahoans may use their property for short-term rentals and allow counties and cities to impose licensing requirements for such use.
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NOTE: Senate Bill 1162 is related to Senate Bill 1163 (2025) and House Bill 506 (2024).
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 1162 would amend Section 67-6539, Idaho Code.
This section currently says, "(1) Neither a county nor a city may enact or enforce any ordinance that has the express or practical effect of prohibiting short-term rentals or vacation rentals in the county or city. A county or city may implement such reasonable regulations as it deems necessary to safeguard the public health, safety and general welfare in order to protect the integrity of residential neighborhoods in which short-term rentals or vacation rentals operate. A short-term rental or vacation rental shall be classified as a residential land use for zoning purposes subject to all zoning requirements applicable thereto. (2) Neither a county nor a city can regulate the operation of a short-term rental marketplace."
The bill would amend and significantly expand this law by adding language stating that the "reasonable regulations" may not "impose different restrictions or obligations on the short-term rentals than are imposed on single family dwellings or similar structures not used as short-term rentals." It contains a non-exhaustive list of restrictions local governments may not impose. It also clarifies that "short-term rental properties and owners shall be subject to all other county and city ordinances and penalties that apply to other residential uses, including but not limited to noise, parking, nuisance, curfew, and traffic regulations and similar regulations."
This explanation is fine and could clarify the intent of the law if it ended here.
Unfortunately, the bill also says, "Nothing in this section shall prevent a county or city from requiring, by ordinance, a business license to operate a short-term rental as long as the licensing ordinance does not impose requirements prohibited by this section." It would allow for an annual fee of up to $50 per property.
This fundamentally contradicts the prior subsections because it is precisely a “different restriction or obligation” than is imposed on single family dwellings or similar structures not used as short-term rentals.
The bill also says that a city or county may revoke a short-term rental license if "a license holder does not provide payment of the annual license fee if required by a county or city ordinance." It also allows a revocation if 3 or more ordinance violations are committed by the property owner, property manager, or occupants in a 12-month period.
It is particularly concerning that a license could be revoked based on ordinance violations committed by occupants of a short-term rental. A property owner should not be penalized for violations committed by others.
Another provision in this bill would require property owners to inform prospective tenants if the short-term rental is equipped with "an operating smoke alarm in every room advertised as a sleeping area"; "an operating fire extinguisher on every floor"; "a first aid kit"; and "for all basement or below-grade rooms advertised as sleeping areas, a means of egress directly to the exterior of the building that is a minimum of thirty (30) inches wide by thirty (30) inches tall."
This bill starts by embracing the notion of private property rights and recognizing that using private property as a short-term rental should not negate those rights. Sadly, it then pivots and engages in exactly the kind of government intrusion it initially condemns.
The use of private property as a short-term rental is a legitimate use of private property and should not be subject to regulation, taxation, licensure, or government intrusion of any kind beyond that which already exists for private property not used for short-term rental purposes.
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