Updated on January 7, 2026
State legislatures across the country considered a range of legislation regulating short-term rentals in 2025. Lawmakers tested proposals on taxation, surveillance pricing, and local control, some of which are still pending in legislative chambers. Below is a year-end look at the most consequential state-level short-term rental bills from last year, organized by what passed, what failed, and what’s still in play in 2026.
Bills That Passed in 2025
California
Host Data-Sharing Law – Senate Bill 346
California enacted a law requiring short-term rental platforms, such as Airbnb and Vrbo, to share host registration data with local governments, thereby strengthening enforcement of local ordinances.
Status: Passed and signed into law.
Colorado
Lodging Tax Expansion – HB 25-1247
The bill increased the allowable county lodging tax cap from 2% to 6%, subject to voter approval, and expanded the use of revenues to include infrastructure, public safety, and environmental initiatives.
Status: Signed into law by Gov. Jared Polis on May 13, 2025.
New Mexico
STR Study Work Group – HM 52
House Memorial 52 created a statewide work group to study short-term rental economic impacts, housing, and taxation, while temporarily halting reclassification of STRs as commercial property.
Status: Passed the House unanimously.
The findings of the work group were presented at a meeting of the Legislature’s Interim Committee on Economic & Rural Development & Policy on Dec. 8, 2025. Carl Vidal, Board Member of the New Mexico Short-Term Rental Association and a member of the HM 52 work group, provided comments during the meeting.
The work group proposed clarifying state law so that homes used as short-term rentals remain classified as residential property for tax purposes, preventing counties from reclassifying them as commercial solely because they host short-term or “transient” stays, according to the HM 52 Report.
“We are working in conjunction with the New Mexico Association of Realtors to find a Senatorial sponsor to carry this bill forward this next legislative session,” said Kris Leslie-Curtis, another NMSTRA Board Member and a work group member. “Secondly, we proposed a bill to carry a preemption to protect STRs in New Mexico at the state level.”
The New Mexico legislative session is scheduled to convene on Jan. 20, 2026, and adjourn at noon on Feb. 19, 2026, according to the official legislative calendar. Lawmakers have until Feb. 4, 2026, to file new bills.
Bills that failed in 2025
Alaska
Governor’s Mansion as a Short-Term Rental – HB 139
This proposal would have allowed Alaska’s governor’s mansion to be rented for events or short-term stays when not in official use.
Status: Heard in committee but did not advance before adjournment.
Arkansas
STR Preemption Bill – HB 1445
House Bill 1445 would have barred local governments from enacting ordinances that effectively prohibit STRs while preserving nuisance enforcement.
Status: Passed committee but never reached a full House vote.
Florida
Tourist Development Councils – House Bills 7033 and 1221
These companion bills would have dissolved local Tourist Development Councils and redirected bed tax revenue toward property tax relief.
Status: Passed the House but died in the Senate Appropriations Committee.
Idaho
Statewide STR Preemption – SB 1162
This Senate bill would have barred local STR bans and classified STRs as residential for zoning and building code purposes.
Status: Defeated on the Senate floor.
Maine
Meals and Lodging Tax Redistribution – LD 283
This bill proposed redirecting 1% of meals and lodging tax revenue to municipalities, which opponents argued would have detracted from revenue meant to attract visitors to the state, indirectly affecting short-term rentals and other lodging providers.
Status: Voted down in committee.
Missouri
Short-term rental tax classification – House Bill 1086
This bill sought to classify short-term rentals as residential real property under state statute. The Missouri Vacation Home Alliance proposed the bill in response to some county assessors arbitrarily reclassifying vacation rentals as commercial because of a loophole in the tax code.
Status: The bill passed the House and a Senate committee but was not acted on in time before the end of the session. MOVHA plans to reintroduce the bill in the 2026 legislative session.
Bills expected heading into 2026
Arizona
Proposal to cap STRs in cities
The League of Arizona Cities and Towns plans to propose a bill in the 2026 legislative session to restrict the number of short-term rental licenses that are issued within a municipality’s jurisdiction, according to the Arizona Capitol Times. The state’s 2016 preemption law now prohibits bans or caps on short-term rentals.
Status: No bill has been filed. The Arizona Capitol Times noted that previous bills to restrict short-term rentals have largely failed to make any progress in the Legislature.
Michigan
Essential Services Tax Enabling Act – House Bill 5140
Legislation filed in November 2025 would impose a 3% tax on short-term rental bookings made through major platforms, such as Airbnb and Vrbo, with local voter approval. The revenue would help fund infrastructure and services.
Status: Assigned to the House Committee on Economic Competiveness
Ohio
STR preemption – SB 104 and HB 109
Identical bills would prohibit local STR bans while expanding lodging taxes to short-term rentals.
Status: Hearings held; no votes taken. Legislature remains in session through 2026.
Pennsylvania
Statewide Compliance Regulations for Short-Term Rentals – No bill number yet
This bill would create a statewide regulatory framework for short-term rentals requiring basic safeguards such as minimum insurance coverage and tax compliance and would authorize counties and municipalities to layer on regulations tailored to their locality, according to a preliminary draft. The proposed framework categorizes short-term rentals into bed & breakfasts, homestays, vacation rental, and “corporate STR operators” with differing requirements for each category.
Status: Not yet filed.
Human Trafficking Awareness Training – No bill number yet
This legislation would require lodging providers, including short-term rental operators and third-party listing platforms, to provide human trafficking awareness training for employees and hosts and to maintain training records and provide them upon request by law enforcement or the Pennsylvania Department of Labor and Industry, according to a memo by state Sen. Judith Schwank.
Status: Not yet filed.
Vermont
Higher Taxation for Short-Term Rentals – No bill number yet
Vermont lawmakers are considering short-term rental taxation legislation in 2026, following a December 2025 report from the Vermont Department of Taxes that provides policy options for taxing second homes and short-term rentals at higher rates than primary residences.
Julie Marks, President of the Vermont Short-Term Rental Alliance, said that no bill drafts or numbers had been released as of Jan. 6, 2026, but the group is closely monitoring the issue.
She also noted that short-term rental provisions could be added to broader tax or revenue packages during the session, rather than appearing as standalone bills. Proposals from previous sessions that remain unresolved include a statewide STR registry, which VTSTRA supports, and a residency requirement, which the alliance opposes.
Status: Not drafted yet.
Prohibiting Surveillance Pricing – No bill number yet
State Sen. Lindsey Williams stated in a Senate memo, dated Dec. 15, 2025, that she plans to file legislation restricting algorithmic pricing practices that could impact STR pricing tools.
Status: Not yet filed.
Legislation filed in 2025 and drafts expected in 2026 suggest that state lawmakers are largely focusing on accountability and the taxation of short-term rentals, whether through more uniform classification of vacation rentals as real property or increased revenue collection from operators to fund state and local services. Attempts to ban or cap short-term rentals at the state level are becoming less common.
Bills like New Mexico’s HM 52 illustrate the value of organized, collaborative, and data-informed policymaking and serve as an example to other states.
To respond to these legislative trends in 2026, STR advocates can stay on top of legislation by joining their area STR alliances, which track these bills; building relationships with lawmakers to stay informed about proposals in the early stages; signing up for legislative updates, providing feedback on bills, and documenting the economic and community value of short-term rentals in their area.
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