St. Louis approves new short-term rental fee

Short-term rental (STR) operators in St. Louis, Missouri, will start paying a new 3% fee on all rents under a new city law that also requires STR operators to get a city business license.

The law, which went into effect February 23, 2026, implements Proposition S, a ballot measure voters approved in November 2024. At least half of the proceeds from the 3% fee will contribute to an affordable housing fund, with the rest going to other housing initiatives.

The new fee law was passed because the ballot measure didn’t set up a way for the city to collect the tax. The ordinance:

• Defines an STR as residential occupancy of a rented dwelling for a term of 30 days or less
• Makes STR operators responsible for paying the fee quarterly
• Authorizes the city to collect the fee
• Creates two new dedicated accounts for the STR fee funds
• Allows the city to enter into agreements with STR marketplaces such as Airbnb and Vrbo to collect the fee from operators
• Sets fines of up to $500 for violations, with each day of the violation considered a separate offense

Meanwhile, the ordinance regulating STRs in St. Louis is on hold. The law, which went into effect in 2024, requires operators to get a city-issued permit for each property they operate, with a maximum of four permits for non-occupied properties per person. Hosts must pay a $150 fee to apply, and permits may only be issued to a person, not an LLC. 

Among other rules, STR operators in areas zoned for single-family residential use are required to go through public conditional use hearings to apply for a permit. The law also limits the percentage of STR units within a multi-unit building and requires a minimum stay of two nights.

A class action lawsuit challenged the $150 application fee, claiming it violates the Hancock Amendment, a state law prohibiting the government from raising taxes without voter approval. In May 2025, a judge paused collection of the application fee until the suit is resolved. Later, the judge ruled that the city could continue to enforce the rest of the STR law, but the city decided to pause enforcement of all the rules. This means the city isn’t accepting or issuing STR permit applications or conducting inspections.

St. Louis STRs are also subject to state sales and lodging taxes and the city’s hotel-motel room tax, which are paid by guests but collected and remitted by STR operators. While Airbnb collects state and local taxes for its St. Louis listings, Vrbo does not.

Avalara helps simplify tax and compliance for the hospitality industry through automation. With Avalara MyLodgeTax, STR 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 Missouri, 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.