Idaho lawmakers move to curb local control over short-term rentals

BOISE, Idaho (KIFI) — Idaho legislators introduced two pivotal bills last week aimed at stripping local governments of their power to regulate short-term rentals (STRs). The legislative push follows a wave of local crackdowns, new taxes, and zoning restrictions in Idaho’s most popular resort towns and vacation destinations, where the explosion of platforms like Airbnb and VRBO has sparked fierce community debate.

Limiting the Scope of Local Regulation

The first proposal, House Bill 583, introduced on February 3rd in the House Business Committee, seeks to limit local STR ordinances strictly to matters of public health and safety.

The bill’s sponsor, Representative Jordan Redman (R-District 3B), cited a 2025 Idaho Supreme Court decision affirming strong protections for short-term rental owners. That ruling struck down a 2006 Lava Hot Springs ordinance that had barred non-owner-occupied STRs from residential zones.

"Property owners should be able to decide how to use their homes," Redman stated. "This bill is a much-needed piece of legislation to affirm owner choice and market freedom."

A Narrow Definition for "Professional" Rentals

A second piece of legislation, introduced in the Senate Commerce and Human Resources Committee, takes a different tack. Senate Bill 1263 aims to prevent cities from adopting STR-specific ordinances beyond basic safety.

Notably, the bill would also prohibit local governments from requiring business licenses for STRs unless the rentals are owned by professional investors who operate four or more STRs in the same jurisdiction or a rental generates greater than $10,000 per year."

Senator Mark Harris argued the bill is intended to balance the competing private property rights of STR owners and local families.

"These ordinances should balance the private property rights of families and long-term residents with those of STR owners," Harris said. "But in some areas of the state, we’ve seen ordinances go too far, disregarding the rights of one group over another."

Pushback from Idaho’s Resort Towns

The legislative proposals have sounded alarms in communities like McCall and Island Park, where STRs often outnumber year-round residents.

McCall: A "Critical Crossroads

In a letter to city residents, McCall Mayor Colby Nielsen warned that the bills put the area at a "critical crossroads." McCall currently hosts over 400 registered STRs—a significant figure for a town with only 1,400 year-round households.

Nielsen pointed to a July 2025 court victory that upheld McCall’s right to set occupancy limits, parking requirements, and fire safety standards. He cautioned that these hard-won local protections are being targeted by interests far removed from McCall.

"We expect more attempts this year with large out-of-state online STR platforms and real estate lobbying groups pushing for rules that support their business model, not Idaho neighborhoods," wrote Nielsen. "These proposals can strip local communities of the ability to manage STRs in ways that best serve residents, replacing local solutions with a ‘one-size-fits-all’ mandate."

Mayor Nielsen pushed McCall's residents to contact their State legislators to oppose the "efforts to preempt local authority."

Island Park: Infrastructure Under Strain

In Island Park, the ratio is even more lopsided: over 1,600 STRs serve a community with fewer than 1,000 residents, less than 200 of which are year-round residents. Residents have complained that the massive influx of seasonal visitors is buckling the area's limited infrastructure and emergency services.

"We do not have the infrastructure for the many people we have during the summer months," said resident Teri Ehresman. "What works for the Boise area does not work for large rural communities like Island Park. Our Island Park residents, who are neighbors to these constant visitors, also have property rights."

The debate in Island Park is further complicated by recent legal drama. Several STR owners were recently charged with voter fraud following allegations that they illegally voted in a local election to defeat a proposed Auditorium District. The district would have imposed a 5% lodging tax on short-term stays to fund local services.

RELATED: Island Park Voter Fraud Investigation

Interestingly, neither of the two bills currently before the legislature would prevent communities from enacting such taxing districts. Both bills have cleared their respective committees and are headed to the House and Senate floors for full debate.