New Idaho law limits local regulation of short-term rentals

Idaho cities and counties face strong restrictions on how they can regulate short-term rentals (STRs) under a new law signed by Governor Brad Little. The measure goes into effect on July 1, 2026.

According to House Bill 583, local governments may not ban STRs and may not require:

• Special STR permits or licenses
• Owner occupation
• Professional property management
• Additional insurance
• Reporting of use or other statistics
• Additional parking
• Modification to the physical structure of the property
• Inspections
• Limits on the number days a property can be rented
• Notices to neighboring properties
• Increased sewer or other utility capacity
• A conditional use permit in a residential zone
• Limits on proximity to other STRs
• Caps on the number of STRs 

Local governments must classify STRs as non-transient residential use, subject to all zoning and building code rules as well as noise, parking, nuisance, curfew, and traffic laws. Cities and counties are allowed to regulate STRs to safeguard health and safety if the rules for STRs are no different than those for other types of residential dwellings, including requiring:

• Smoke alarms for sleeping areas
• A functioning fire extinguisher and carbon monoxide detector on each floor
• Removable escape ladders in all sleeping areas with a window that are located above the ground floor
• Informational handouts for tenants describing the location of exits, fire extinguishers, the location of any supplied first aid kits, and a phone number to contact the owner or manager of the STR in the case of an emergency

Cities and counties are prohibited from levying taxes or fees on the business of operating an STR marketplace.

While most states largely leave STR operational rules to local governments, Idaho now joins a few states that restrict how far cities and counties can go in regulating STRs. In Arizona, the state Legislature passed a law in 2017 that prohibited cities, towns, and counties from restricting short-term rentals. However, the state has gradually given local governments some more say in regulating the industry.

Florida also limits local STR regulation. State legislation passed in 2011 barred local governments from banning short-term rentals entirely or regulating the length of stays or their frequency. Despite that, the Legislature passed another law in 2014 that allowed local governments more powers to regulate STRs in areas such as parking, garbage collection, and noise. In 2024, Florida Governor Ron DeSantis vetoed a controversial STR bill that would have invalidated recent local regulations and decreased local governments’ control over STRs going forward.

The new law also requires STR marketplaces — as well as individual STR operators who don’t go through marketplaces — to register with the state tax commission and collect and remit state and local lodging taxes on all transactions.

In Idaho, reservations of 30 days or less are subject to state lodging taxes in Idaho, which includes sales tax, travel and convention tax, and auditorium district tax. Local governments may also levy their own lodging taxes.

Avalara helps simplify tax and compliance for the hospitality industry through automation. With Avalara MyLodgeTax, short-term rental owners and property managers can register with tax authorities, calculate lodging taxes, prepare and file returns, and remit payment. Avalara is trusted by 200,000+ direct and indirect customers in 75+ countries. 

For more on lodging taxes in Idaho, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.

Avalara helps simplify tax and compliance for the hospitality industry through automation. With Avalara MyLodgeTax, short-term rental owners and property managers can register with tax authorities, calculate lodging taxes, prepare and file returns, and remit payment. Avalara is trusted by 200,000+ direct and indirect customers in 75+ countries.

For more on lodging taxes in Maryland, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.