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Utah lawmaker to propose regulations, guidelines on short-term rentals in upcoming legislative session

Posted at 10:36 PM, Dec 19, 2023
and last updated 2023-12-20 00:36:17-05

SALT LAKE CITY — Vacation properties and other short-term rentals could face some new regulations on Utah's Capitol Hill.

Rep. Gay Lynn Bennion (D-Cottonwood Heights) says short-term rentals are an industry that brought more than $ 750 million in the last year in gross revenues with 38,000 active short-term rental listings in Utah.

"This industry of short-term rentals has grown exponentially, and we don't have any state guidance on this business," said Bennion.

Bennion says she will be running a bill in the upcoming legislative session, much like she did last year, aimed at treating short-term rentals — like Airbnb and VRBO — like businesses.

"As a lodging business and making sure that the owner and the local contact are educated and paying their taxes," she said. "It requires that local permit, and that local permit be posted on the ad, so it's clear that this is a legal business."

The responsibility of that local contact, Bennion says, would be to respond to any problems at the property.

She says another important part of the bill is that it has limits.

"You can't rent out short-term several rooms within one house. And even for one room, you should go get a license just for safety, for insurance and everything else you are taking on as a business owner," Bennion said.

Bennion told FOX 13 News about what made her run this piece of legislation, calling this a very complex issue.

"Two and a half years ago, constituents came to me concerned that in their neighborhood where it was not zoned to operate a long-term rental was purchased and turned into three short-term rentals within one house, so the impact that makes for parking and disturbance of the neighborhood is great," she said. "But, I see also the benefits of short-term rentals."

With the ski resorts essentially in the backyard of her district, Bennion says she hopes this will also alleviate the chance of people using short-term rentals as so-called party houses.

"We just need this bill because it provides everything essential on the state level to provide for strong local governance on this issue," she said.

FOX 13 News reached out to Airbnb, but they declined to comment on the proposed legislation, as the company has not yet seen any language in the bill.

The bill will be considered in the legislative session that begins in January.