HB 2740 Summary

• Prohibits cities, towns, and counties from banning vacation rentals or short-term rentals, but allows regulation for public health, safety, zoning, and nuisance issues.

• Requires vacation rental owners to provide valid transaction privilege tax licenses and emergency contact information to local jurisdictions, with civil penalties up to $1,000 per 30 days for non-compliance.

• Establishes permit/license application fees capped at $500 and requires local jurisdictions to issue or deny permits within 30 business days based on specified criteria.

• Defines vacation rentals and short-term rentals by occupancy limits (less than 60-120 days per year depending on configuration) and prohibits nonresidential uses including special events, retail, restaurants, and banquet spaces.

• Authorizes civil penalties ranging from $500 to $3,500 per violation (or nightly rent amounts) and permit suspensions up to 12 months for verified violations, with penalties transferring to subsequent property owners.