SB 1554 Summary

• Prohibits cities, towns, and counties from banning vacation rentals or short-term rentals, while allowing regulation for health/safety, zoning, nuisance issues, occupancy limits (two adults per bedroom plus two additional adults), licensing/registration, and emergency contact requirements.

• Excludes vacation rentals and short-term rentals from residential rental dwelling unit definitions, exempting them from residential rental inspection programs and landlord licensing requirements.

• Establishes state-level civil penalties for online lodging operators with verified violations: $500 for first violation, $1,000 for second violation within 12 months, and 50% of gross monthly revenues or $1,500 (whichever is greater) for third and subsequent violations within 12 months.

• Requires cities, towns, and counties to report verified violations to the Department of Revenue within 30 days and notify property owners of citations within seven business days using provided contact information.

• Prohibits vacation rentals and short-term rentals from advertising occupancy exceeding limits or for nonresidential uses, with daily civil penalties assessed for violations of advertising restrictions.