HB 7177 Summary: Short-Term Rental Properties

• Establishes licensing requirement for short-term rental operators effective January 1, 2020, administered by the Commissioner of Consumer Protection, with two-year license terms and renewal provisions.

• Requires short-term rental operators to maintain property and casualty insurance with minimum $1 million liability coverage as prescribed by the Insurance Commissioner.

• Mandates notice to property owners and neighboring residents before filing short-term rental applications, disclosing the applicant's name, property address, and intent to operate.

• Imposes a 5% sales tax on short-term rental transactions (occupancy periods of 30 consecutive days or less), with 50% of revenue deposited into the Housing Trust Fund beginning July 1, 2019.

• Allows municipalities to levy up to 6% tax on short-term rental operators' income and to limit the number of days guests may occupy short-term rental properties annually through local ordinance.