Executive Summary
New York's statewide tax registry now requires platforms to report all booking details and collect taxes, adding administrative overhead for hosts across the Empire State. Meanwhile, Ithaca's new rules demand on-site host residency and $400 annual fees with $500 daily violation penalties. Delaware's 4.5% state tax plus $25 licensing requirement is now live, cutting into beach rental profits.
On the upside, areas of Kansas City, Missouri, are lifting regulations for the 2026 World Cup, creating a rare expansion window for investors willing to move fast. Glen Ellyn, Illinois, represents the broader legal battleground as property owners successfully paused the city's STR ban in federal court, though the ultimate outcome remains uncertain.
Regulation Updates
Kansas City, Missouri
Date of Announcement: May 21, 2025
Regulation Category: Licensing (removal of ward-based permit caps)
Summary: Parkville has removed its cap of four short-term rental permits per ward to accommodate visitors for the 2026 FIFA World Cup, requiring only a permit and one designated parking spot per unit.
Source: Parkville lifts cap on Airbnb, VRBO for World Cup. Will others follow suit?
New York (Statewide)
Date of Announcement: May 24, 2025
Regulation Category: Tax (sales tax and booking reporting) Summary: New York's new statewide short-term rental registry law requires platforms like Airbnb and VRBO to report booking details and collect taxes, aligning regulations with those for hotels and addressing tax revenue losses. Investors will face increased administrative burdens and potential privacy concerns due to mandatory reporting and compliance requirements.
Source: Short Term Rental Sales Tax Law About to Take Effect
Glen Ellyn, Illinois
Date of Announcement: May 19, 2025
Regulation Category: Zoning
Summary: A federal judge has temporarily halted Glen Ellyn's ban on short-term rentals, such as Airbnb, following a lawsuit by property owners claiming the ban violates their constitutional rights.
Source: Judge pauses Glen Ellyn's short-term rental ban amid lawsuit
Ithaca, New York
Date of Announcement: June 1, 2025
Regulation Category: Licensing, Occupancy, and Tax
Summary: Ithaca's new short-term rental law, effective June 1, mandates on-site host residency, safety inspections, a $400 annual fee, and individual name listings, with $500 daily fines for violations.
Source: Ithaca to begin enforcing short-term rental law June 1
Delaware (Statewide)
Date of Announcement: May 25, 2025
Regulation Category: Tax (state tax and business license requirement) Summary: Delaware has implemented a 4.5% state tax on short-term rentals, requiring operators to obtain a $25 business license and comply with tax collection enforced by audits and penalties.
Source: State tax on beach rentals now in effect
Developing Regulations
Danville, Virginia
Date of Announcement: May 23, 2025
Regulation Category: Licensing and Occupancy (special exception permits and occupancy limits)
Summary: Danville is proposing new short-term rental guidelines that include a detailed permit application checklist, a limit of two people per bedroom, and one off-street parking space per bedroom. Source: New short-term rental guidelines proposed in Danville to ensure safety and consistency