Last updated:
April 1, 2026
2
minute read

This Week’s Short-Term Rental Regulation Updates

Mar 25-31, 2026: Airbnb Regulations

Executive Summary

Decatur, Alabama is capping STR properties at 150 per year starting April 1, with density limits of no more than three rentals within a 1,000-foot radius and mandatory fire and building inspections. In California, a judge ruled Hermosa Beach's 2016 STR ban in the Coastal Zone illegal - over 200 STRs are advertised there now, and if registered they'd generate roughly $600,000 a year in TOT revenue at the city's 14% rate. Pennsylvania lawmakers introduced H.B. 2303, which would create countywide STR registries and tiered operator categories statewide, following two shootings at Pittsburgh Airbnbs. Hawaii is pushing platforms to collect taxes directly with H.B. 1590 after audits found 163 taxpayers owing $9.8 million in hotel room taxes. Connecticut and Oswego County, New York, are both proposing new STR registries with additional taxes, up to 2.75% in Connecticut and 4% in Oswego County.

New Regulations

Hermosa Beach, California 

Published: March 28, 2026
Regulation Category: Zoning
Summary: A judge ruled Hermosa Beach's 2016 STR ban in the Coastal Zone illegal because the city never got a Coastal Commission permit. Over 200 STRs are advertised in the zone — if registered, they could generate roughly $600,000 in annual TOT revenue at the city's 14% rate.
Source: Hermosa Short Term Rental lawsuit loss could be financial boon

Costa Rica 

Published: March 28, 2026
Regulation Category: Tax / Licensing
Summary: Costa Rica is enforcing a 2019 law requiring all STR operators to register with the Institute of Tourism and tax authorities, issue digital invoices, and pay 13% VAT plus income tax. Authorities are building a directory of STR providers to monitor the industry for tax compliance and safety standards.
Source: Costa Rica Cracks Down on Taxes for Airbnb and Short-Term Rentals

Decatur, Alabama 

Published: March 29, 2026
Regulation Category: Licensing / Occupancy
Summary: Decatur capped STR properties at 150 per year on a first-come, first-served basis, effective April 1. Operators need a Business Privilege License and a $250 STR certificate, properties can't have more than three STRs within a 1,000-foot radius, and must pass fire and building inspections.
Source: North Alabama city cracks down on Airbnb, VRBO, caps short-term rental properties at 150 a year

Salem, Oregon 

Published: March 24, 2026
Regulation Category: Tax
Summary: Salem City Council unanimously voted to include STRs in the city's Tourism Promotion Area, adding a 2% fee on overnight stays. The ordinance requires platforms like Airbnb and Vrbo to collect and remit the fee on behalf of operators.
Source: Salem City Council votes to put tourism fee on short-term rentals

Developing Regulations

Connecticut 

Published: March 30, 2026
Regulation Category: Tax / Licensing
Summary: House Bill 5536 would create a statewide STR registry and let municipalities impose an additional tax up to 2.75% on STR stays. Owners listing on platforms like Airbnb and Vrbo would be required to register with the state and report activity data.
Source: CT bill would create short-term rental registry, allow local tax

Pennsylvania 

Published: March 26, 2026
Regulation Category: Licensing / General
Summary: H.B. 2303 would establish countywide STR registries, require 24/7 designated contacts for each property, and create distinct categories for homestay, vacation rental, and corporate operators with tiered safety standards. The bill follows two shootings at Pittsburgh Airbnbs and Pittsburgh's ongoing lack of any STR restrictions.
Source: Local Lawmakers Propose Legislation to Regulate Airbnbs - Again

Hawaii 

Published: March 29, 2026
Regulation Category: Tax
Summary: House Bill 1590 would require platforms like Airbnb to register as state tax collection agents and remit taxes on behalf of hosts, with platforms liable for unpaid taxes. Previous versions were vetoed in 2016 and 2019, but Gov. Josh Green's administration supports this one — recent audits found 163 taxpayers owing $9.8 million in hotel room taxes.
Source: Airbnb As Tax Collector? It's A Familiar Debate In The Legislature

Oswego County, New York 

Published: March 30, 2026
Regulation Category: Tax
Summary: Oswego County is considering a 4% bed tax on short-term rentals along with a registry system. The revenue would go toward local tourism infrastructure and promotion.
Source: County considers 4% bed tax for short-term rentals

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