Amends existing law to revise provisions regarding limitations on the regulation of and limiting the tax duties of short-term rentals.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 583 BY BUSINESS COMMITTEE AN ACT1 RELATING TO SHORT-TERM RENTALS; AMENDING SECTION 67-6539, IDAHO CODE, TO2 REVISE PROVISIONS REGARDING LIMITATIONS ON REGULATION OF SHORT-TERM3 RENTALS; AMENDING SECTION 63-1804, IDAHO CODE, TO REVISE PROVISIONS4 REGARDING LIMITING TAX DUTIES OF SHORT-TERM RENTAL MARKETPLACES; AND5 DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.6

Be It Enacted by the Legislature of the State of Idaho:7

SECTION 1. That Section 67-6539, Idaho Code, be, and the same is hereby8 amended to read as follows:9 67-6539. LIMITATIONS ON REGULATION OF SHORT-TERM RENTALS AND VACATION10 RENTALS. (1) Neither a county nor a city may shall enact or enforce any or-11 dinance that has the express or practical effect of prohibiting any type of12 short-term rentals or vacation rentals in the county or city. A county or13 city may implement enact or enforce such reasonable regulations as it deems14 are necessary to safeguard the public health, safety and general welfare in15 order to protect the integrity of residential neighborhoods in which short-16 term rentals or vacation rentals operate and safety as long as the reasonable17 regulations do not impose different restrictions or obligations on short-18 term rentals than are imposed on single-family dwellings or similar struc-19 tures not used as short-term rentals, or unless the regulations are permit-20 ted by this section. A short-term rental or vacation rental shall be clas-21 sified as a non-transient residential land use for zoning and building code22 purposes and be subject to all zoning requirements applicable thereto and23 only to building codes adopted by the Idaho building code board.24 (2)(a) For purposes of this section, "different restrictions or obli-25 gations" means any requirement or regulation that would not be imposed26 but for a property's use as a short-term rental and specifically in-27 cludes but is not limited to the following:28 (i) Requiring owner occupation for any amount of time;29 (ii) Requiring professional property management;30 (iii) Requiring additional insurance;31 (iv) Requiring reporting of use or other statistics;32 (v) Requiring additional fire protection or fire sprinklers;33 (vi) Requiring additional or improved means of ingress and34 egress;35 (vii) Requiring additional parking;36 (viii) Requiring modification to the physical structure of the37 property;38 (ix) Requiring inspections;39 (x) Requiring internal or external signage, notices, or dia-40 grams;41 (xi) Imposing a limit on the days a property can be rented;42

2 (xii) Requiring notices to neighboring properties;1 (xiii) Requiring increased sewer or other utility capacity;2 (xiv) Requiring a conditional use permit in a residential zone;3 (xv) Limiting proximity to other short-term rentals;4 (xvi) Restricting the number of short-term rentals in a county or5 city; or6 (xvii) Requiring the property to be improved to meet current7 building codes unless the same would be required without regard to8 the short-term rental use.9 (b) The terms defined in section 63-1803, Idaho Code, shall apply to10 this section.11 (3) A county or city may, by ordinance, require an owner of a short-term12 rental to implement the following requirements only:13 (a) That all sleeping areas in a short-term rental, including when ap-14 plicable, basements, living rooms, and family rooms, be equipped with15 functioning smoke alarms;16 (b) That the short-term rental be equipped with a functioning fire ex-17 tinguisher and a functioning carbon monoxide detector on each floor;18 (c) That removable escape ladders be available in all sleeping areas19 with a window that are located above the ground floor;20 (d) That maximum occupancy limits for short-term rentals do not exceed21 those non-transient residential limits as contained in the interna-22 tional building codes as adopted by the Idaho building code board; and23 (e) That an easily accessible informational handout be available to24 tenants describing the location of exits, the location of fire ex-25 tinguishers, the location of any supplied first aid kits, and a phone26 number to contact the owner or manager of the short-term rental in the27 case of an emergency.28 (4) No county or city shall enact or enforce any covenant, condition,29 restriction, or contract that regulates a short-term rental except as al-30 lowed in this section.31 (5) No county or city shall require a license, fee, permit, certifica-32 tion, or registration to operate a short-term rental.33 (6) All short-term rental properties along with their owners and ten-34 ants shall be subject to all other county and city ordinances and penalties35 that apply to other non-short-term rental residential uses, including but36 not limited to noise, parking, nuisance, curfew, and traffic regulations.37 (2) (7) Neither a county nor a city can shall regulate the operation of38 a short-term rental marketplace in accordance with the provisions of chapter39 18, title 63, Idaho Code.40

SECTION 2. That Section 63-1804, Idaho Code, be, and the same is hereby41 amended to read as follows:42 63-1804. LIMITING TAX DUTIES OF SHORT-TERM RENTAL MARKETPLACES AND43 OWNERS -- COLLECTION OF TAX. (1) A local government may not levy a sales,44 use, franchise, receipts, or other similar tax or fee on the business of45 operating a short-term rental marketplace.46 (2) A short-term rental marketplace shall register with the state47 tax commission for collection, reporting, and payment of sales and use and48 travel and convention taxes levied by this state and any applicable local49

3 government taxes administered by the state tax commission on short-term1 rentals and vacation rentals due from a lodging operator on any lodging2 transaction facilitated by the short-term rental marketplace.3 (3) A short-term rental marketplace shall collect, report, and pay4 taxes imposed on the lodging operator or occupant of a short-term rental or5 vacation rental by any local government.6 (4) Any local government that has levied a tax pursuant to statutory au-7 thorization, may contract with the state tax commission for the collection8 and administration of such taxes in like manner and under definitions and9 rules of the state tax commission for the collection and administration of10 the state sales or use tax under chapter 36, title 63, Idaho Code. Alterna-11 tively, such local government shall have authority to administer and collect12 such tax. All revenues collected on behalf of the local governments by the13 state tax commission pursuant to this chapter shall be distributed as fol-14 lows: An amount of money shall be distributed to the state refund fund suffi-15 cient to pay current refund claims. All refunds authorized by the commission16 to be paid shall be paid through the state refund fund and those moneys are17 continuously appropriated. The state tax commission may retain an amount18 of money equal to such fee as may be agreed upon between the state tax com-19 mission and such local government for the actual cost of the collection and20 administration of the tax. The amount retained by the commission shall not21 exceed the amount authorized to be expended by appropriation by the legis-22 lature. Any unencumbered balance in excess of the actual cost at the end of23 each fiscal year shall be distributed as provided in this section. All re-24 maining moneys received pursuant to this chapter shall be placed in a fund25 designated by the state controller and remitted monthly to the local govern-26 ment levying such tax.27 (5) If an owner of a short-term rental offers a short-term rental or va-28 cation rental directly to an occupant without the use of a short-term rental29 marketplace, such owner shall comply with all the requirements provided in30 this section applicable to a short-term rental marketplace.31 (5) (6) A short-term rental marketplace that has not facilitated a32 lodging transaction in Idaho shall have forty-five (45) days to comply with33 this section upon completion of their first lodging transaction in Idaho.34

SECTION 3. An emergency existing therefor, which emergency is hereby35 declared to exist, this act shall be in full force and effect on and after36 July 1, 2026.37