HB 2176 Summary

• Amends state law to prohibit cities, towns, and counties from banning vacation rentals or short-term rentals, though they may regulate them for specific purposes.

• Allows local governments to regulate vacation rentals and short-term rentals for public health and safety, residential zoning, preventing illegal uses, and requiring owner contact information.

• Adds new authority for cities, towns, and counties to prohibit or restrict investor-owned vacation rental properties (those not used as the owner's primary or secondary residence) to commercial zones only.

• Requires local governments to notify the Department of Revenue and property owners of verified violations within 30 days and to attempt notifying owners of citations within seven business days using provided contact information.

• Prohibits vacation rentals and short-term rentals from being used for nonresidential purposes such as retail, restaurants, banquet spaces, or special events that would normally require permits or licenses.