Federal bill to eliminate ‘junk fees’ on its way to becoming law 

Federal legislation that would mandate short-term rental price transparency is closer to becoming law. 

The bill would require short-term rentals, hotels and travel booking websites to display the total price for travelers up front, rather than tack on fees during the checkout process. 

The Senate Commerce, Science & Transportation Committee advanced its version of the legislation on July 31. The bill is now teed up for a full Senate vote. The House already passed its version of the bill in June. 

The bill is bipartisan and likely to be signed into law by President Joe Biden. The Biden administration has made cracking down on what critics call “junk fees” a priority. 

The bill becoming law would mark a major step in federal short-term rental regulations at a time when states and municipalities are increasingly weighing their regulatory options. 

The American Hotel & Lodging Association said it looks forward to working with Congress to send the bill to the president's desk. 

“Today’s committee vote in the Senate is an important step toward a more transparent booking process for guests and a level playing field across the lodging industry—including short-term rentals, online travel agencies, metasearch sites, and hotels," AHLA’s interim President and CEO Kevin Carey said in a statement. 

Below, please find Property Guard's weekly short term rental regulation round-up, highlighting state and local news regarding short term rental regulations to regulate (or prohibit) Airbnbs and other STRs. If you want a comprehensive data solution on STR regulations in all 20,000 state and local jurisdictions, contact us here.

New and Proposed Regulations:

• Vermont: A new 3% tax on short-term rental bookings in the Green Mountain State is in effect starting Aug. 1, bringing the total tax rate on bookings to 12% to 13%. (link). 
• Plano, Texas: A new ordinance is in effect starting Aug. 1 that bans most new short-term rentals and requires existing rentals to register with the city. (link)
• Houston, Texas: City council members in Houston (home to the NASA Johnson Space Center) are collecting data that could lead to new short-term rental regulations this year. (link)
• Narragansett, Rhode Island: A new ordinance limiting short-term rentals that was set to go into effect on Aug. 1 is on pause until at least Sept. 16 after a group of landlords sued. (link)  
• Madera County, California: A surge in short-term rentals near Yosemite has local officials tightening rental rules. (link)

Other Noteworthy News:

• Supreme ruling: The Connecticut Supreme Court ruled in a case that could make it easier for property owners to rent their homes on a short-term basis. (link) 
• Plans to sell: In Park Township, Michigan, 33% of current rental owners say they will sell their properties if the town enforces an STR ban. (link)  
• Europe soars: Europe’s short-term rentals continue to soar with nights booked jumping 28.3% in the first quarter of 2024 compared to last year. (link)