Idaho House Bill 506: Clarifying Idaho STR Regulations

Idaho House Bill 506, introduced by Rep. Jordan Redman and the House Business Committee on February 8, 2024, aims to clarify existing state law regarding the regulation of short-term rentals and vacation rentals, such as those listed on various booking platforms.

The bill seeks to amend Section 67-6539 of the Idaho Code, which currently allows counties and cities to implement "reasonable regulations" on STRs to safeguard public health, safety, and general welfare. HB506 would expand this law by specifying that these regulations cannot impose greater restrictions or obligations on STRs than on single-family dwellings or similar structures not used as STRs.

While the bill would allow local governments to require business licenses and charge reasonable annual fees for operating STRs, it would also limit their ability to revoke licenses based on ordinance violations occurring "in or around the property." Additionally, the bill would require STR owners to disclose to prospective tenants if the property lacks certain safety features, such as smoke detectors or fire extinguishers.

Proponents argue that HB506 would protect private property rights and prevent discrimination against STRs compared to long-term rentals, helping to support Idaho's vital tourism economy. However, opponents, including city officials from resort towns like McCall, Sandpoint, and Ketchum, claim that the bill would erase essential protections and hinder their ability to address issues related to STRs, such as parking, noise, and safety concerns.

Idaho HB506 Timeline and Will It Pass?

As of March 25, 2024, HB506 has been retained on General Orders in the Idaho House, indicating that it is still under consideration and has not yet passed. The bill has sparked heated debate, with the House Business Committee holding a public hearing on March 7, 2024, featuring testimony from both supporters and opponents.

To become law, HB506 would need to pass both the Idaho House and Senate and be signed by the governor. If enacted, the bill would take effect on July 1, 2024. As the legislative session continues, stakeholders on both sides of the issue are closely monitoring the progress of this controversial bill, which could have significant implications for the regulation of short-term rentals in Idaho.