Executive Summary
Montana's new second-home tax will increase property taxes by roughly 50% on most short-term rentals starting in 2026 unless owners can prove seven months of long-term occupancy or primary residence status. Galveston, Texas, now enforces a three-strike rule where three violations within 12 months can trigger license revocation, making compliance failures potentially fatal to your rental business. Kansas City is rolling out temporary $50 permits for major events like the 2026 World Cup, creating short-term opportunity for casual hosts without committing to annual registration. England's proposed tourism tax could stack a 5% nightly fee on top of existing VAT, pushing the total tax burden to 27% on each booking. Sedona has allocated $100,000 to lobby for statewide legislation allowing cities to impose rental caps, area-specific limits, and minimum spacing requirements between properties - potentially restricting where and how many STRs can operate across Arizona.
New Regulations
Galveston, Texas
Published: November 14, 2025
Regulation Category: Licensing (enforcement and revocation)
Summary: Galveston City Council unanimously approved a new ordinance implementing a three-strike rule allowing the STR Licensing Board to recommend license revocation after three violations within 12 months, covering issues like noise, parking, trash, fireworks, and overcrowding. Owners remain fully responsible for guest compliance, addressing rapid STR growth and resident complaints about crime and disturbances.
Source: Galveston rental ordinance city council
Montana (Statewide)
Published: November 13, 2025
Regulation Category: Tax (property tax)
Summary: Montana's Department of Revenue proposed administrative rules for a 2026 second-home tax that will increase property tax rates by ~50% on average for non-qualifying residences, directly impacting most short-term rentals unless they meet homestead exemptions. Exemptions require proof of principal residence or long-term leasing for at least seven months per year, with applications open December 1 to March 1 and prorated options for mixed-use properties.
Source: Proposed rules implement details for Montana's upcoming second-home tax
Kansas City, Missouri
Published: November 13, 2025
Regulation Category: Licensing (temporary permits)
Summary: Kansas City has approved a new temporary 90-day short-term rental permit for $50 during major declared events like the 2026 FIFA World Cup, much lower than the standard $200 annual fee, allowing more residents to list properties without full-year registration. This aims to increase lodging supply and keep rates affordable during high-demand periods while still applying existing city STR rules and generating tax revenue.
Source: KC could make Airbnb, VRBO rental during World Cup easier
Nova Scotia, Canada
Published: November, 2025
Regulation Category: Licensing (platforms)
Summary: Nova Scotia requires all accommodations marketing platforms (e.g., Airbnb, VRBO) facilitating short-term rentals of 28 days or less to register annually for $500 per platform and obtain a registration number that must be displayed on every listing. Non-compliance can result in fines up to $100,000 per year, ensuring platforms enforce host registration and provincial oversight.
Source: Register your accommodations marketing platform
Santa Fe, New Mexico
Published: November 13, 2025
Regulation Category: Licensing (compliance and monitoring)
Summary: Santa Fe launched Avenu-provided software for better short-term rental tracking, including automated identification, revenue collection, a 24/7 complaint hotline, and a public portal for education and issue reporting. The system aims to improve enforcement of existing regulations and communication while the city hosts informational sessions for residents and operators.
Source: Santa Fe launches new short-term rental software
Laketown Township, Michigan
Published: November 12, 2025
Regulation Category: Licensing, Zoning (moratorium on new applications)
Summary: Laketown Township Board is considering extending a moratorium on new free-standing short-term rental applications through June 30, 2026, originally enacted in May 2025 to allow time for addressing noise, traffic, and commercial-use concerns. The planning commission recommends the extension to finalize balanced regulations acceptable to stakeholders.
Source: STR, Steps & Bus Service Before Laketown Twp. Board Tonight
Developing Regulations
Sedona, Arizona
Published: November 16, 2025
Regulation Category: Zoning, Licensing (caps and controls)
Tax Summary: Sedona City Council approved $100,000 to hire a lobbyist for the 2026 Arizona legislative session to push bills allowing cities to control STR zoning, impose overall caps, set area-specific limits, and establish minimum distances between rentals. Additional proposals include raising STR property taxes to match hotel rates and forming coalitions to overcome real estate industry opposition that has blocked prior bills.
Source: City of Sedona to spend $100K on legislative lobbyist
England, United Kingdom
Published: November 17, 2025
Regulation Category: Tax (tourism levy/nightly tax)
Summary: UK Chancellor Rachel Reeves is proposing to grant English mayors powers to impose a nightly tourism tax on short-term rentals and hotels, potentially up to 5% (creating an effective ~27% tax with VAT), which could raise hundreds of millions annually for local infrastructure. The measure is part of amendments to the English devolution bill and has support from mayors like those in Manchester and London, but it remains proposed and faces opposition from the hospitality sector over added consumer costs.
Source: Rachel Reeves holiday tax English hotel Airbnb stays
Vermont (Statewide)
Published: November 15, 2025
Regulation Category: Tax (property tax)
Summary: A resident's letter to the editor proposes Vermont adopt Montana-style property tax reforms with tiered rates that provide relief to primary homeowners and long-term rentals while increasing burdens on second homes and short-term rental operators. This would aim to curb speculation, improve housing affordability for locals, and redistribute revenue without overall tax hikes.
Source: Letter: Property tax reform in Vermont
Kelowna, British Columbia
Published: November 12, 2025
Regulation Category: Licensing (provincial restrictions - no major new update)
Summary: Kelowna stakeholders, including STR hosts and tourism operators, held a meeting to address ongoing economic harms from British Columbia's short-term rental regulations implemented in May 2024, such as reduced lodging supply and higher hotel prices deterring visitors. Despite national tourism records in 2025, local businesses report declining sales attributed to the provincial rules and registration requirements, with no new regulatory changes announced.
Source: Kelowna business leaders to discuss impact of short-term rental rules