HB 2488 Summary

• Cities and towns are prohibited from banning vacation rentals or short-term rentals, but may regulate them for health, safety, zoning, and nuisance purposes applied equally to other residential properties.

• Cities and towns may require owners to obtain local permits or licenses (capped at $250 fee), provide emergency contact information, notify adjacent properties, display permit numbers on advertisements, and maintain $500,000 liability insurance or equivalent marketplace coverage.

• Civil penalties range from $500-$3,500 (or one to three nights' rent, whichever is greater) for verified violations, with permit suspension for three violations in 12 months or one serious violation involving felonies, serious injury, sex offenders, or prohibited business uses.

• New authority added: Cities and towns may limit vacation rentals to a percentage of total residentially zoned buildings or regulate them as transient lodging activities.

• Owners failing to apply for required permits within 30 days must cease operations and face additional penalties of up to $1,000 monthly; cities must notify owners of citations within seven business days using provided contact information.