Input sought on short-term rentals in Idaho Falls

The city of Idaho Falls is seeking public input on short-term rentals within city limits and is asking residents and business owners to fill out a 10 question online survey and attend a public open house on Wednesday.

A short-term rental is one in which a property owner rents out property or a part of his or her property, such as a bedroom, to a guest for a short period. The rentals are usually accomplished through an online company such as Airbnb or VRBO.

Short-term rental zoning provisions often define “short-term” as fewer than 30 days.

The city of Idaho Falls does not have an ordinance that outlines the rules and regulations for short-term rentals. Residents and business owners are asked to fill out a questionnaire that includes such questions as:

Are you aware of any short-term rentals in your neighborhood? Have you ever been inconvenienced by short-term rentals in your neighborhood?

More than 200 people have responded so far to the survey.

According to Idaho Falls community development services director Brad Cramer, the city is looking into the topic because of upcoming events that are expected to have a major impact on the hospitality business along with a growing trend of local resident inquiries.

Once the ordinance is established, it will spell out which zoning districts allow short-term rentals.

“We don’t actually have an ordinance right now and that’s what we are trying to resolve. Right now, the current ordinance classifies them as hotel so we need to clarify. We need people’s comments,” Cramer said.

“We’d like to resolve whatever it is we are going to do whether to allow them or not allow them in time for people to make that decision for people to rent out their home prior to the air show, the Eclipse any of these big events coming up this summer.”

While some council members are concerned about the effects of short-term rentals in the neighborhoods, they are also concerned about how they will affect the hotel industry in regard to a bed tax. A bed tax also known as a lodging tax or room tax is a levy imposed upon local government on hotels and motels within its governing area.

“If I stay at a hotel in Idaho Falls, I have to pay a bed tax. How can I avoid paying that fee? Well, that tax goes toward the Auditorium District. That’s one of the concerns. There are companies like Airbnb that have established a system that are including a bed tax which then is directed to the Auditorium District like ours. We don’t want to damage existing businesses,” Cramer said.

Another concern from businesses is regulations.

“Some established businesses have building codes implemented. There’s an entire list of regulations that hotels have to follow. If I want to build a new hotel, I have to meet the codes. Is it fair to compare short-term rentals to a hotel business model? Should short-term rentals have requirements? Those are some of the questions people have had,” Cramer said.

Some counties including Jackson Hole Wyoming, have made short-term rentals illegal. People found to be breaking the law could face a penalty of as much as $750 a day.

Locations including Sun Valley, Idaho, Denver, Colorado and cities in California have embraced a “sharing economy” lifestyle and have established ordinances laying out rules for short-term rentals.

“We are looking all across the country at communities that have done it. We are talking to planners across the country and reading codes and doing as much homework as we can, ” Cramer said.

According to The Associated Press, a current court case is challenging Jackson’s ban on short-term residential rentals as unconstitutional.

The survey will be open until Feb.1.The city of Idaho Falls will host a public open house on short-term rentals from 4 to 7:00 p.m. on Wednesday at the Idaho Falls Public Library, 457 W. Broadway.

To take the survey, visit idahofallsidaho.gov.