SB 1168 Summary

• Cities and towns may not prohibit vacation rentals or short-term rentals but may regulate them for public health and safety, zoning, nuisance control, and to prevent use for illegal activities like drug sales or sex offender housing.

• Local regulatory permits or licenses may be required with applications limited to owner contact information, property address, tax compliance proof, emergency contact details, and fees not exceeding $250, with issuance or denial within seven business days.

• Civil penalties range from $500 (or one night's rent, whichever is greater) for first violations up to $3,500 (or three nights' rent) for third and subsequent violations within a 12-month period; permit suspension up to 12 months allowed for three violations in 12 months or serious violations involving felonies, injury, or death.

• Owners must provide emergency contact information to local authorities and notify adjacent residents before offering rental; property must maintain at least $500,000 liability insurance or equivalent marketplace coverage.

• Transaction privilege tax license must be displayed on all advertisements; identical provisions apply to county regulation of vacation rentals in unincorporated areas; section 42-1125.02 is repealed.