1     
SHORT-TERM RENTAL AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Gay Lynn Bennion

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill enacts provisions regarding short-term residential rentals.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires municipalities and counties that allow short-term rentals to adopt
13     ordinances or regulations to promote the health, safety, and welfare of short-term
14     rental occupants;
15          ▸     prohibits the operation of a short-term rental unless the municipality or county
16     issues a permit to operate the short-term rental and the State Tax Commission issues
17     a sales tax license;
18          ▸     provides for requirements for a municipality or county issuing a short-term rental
19     permit;
20          ▸     authorizes municipalities and counties to enact ordinances to ensure compliance
21     with applicable requirements; and
22          ▸     imposes requirements and limitations on an owner of a short-term rental.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          None
27     Utah Code Sections Affected:

28     ENACTS:
29          10-9a-538, Utah Code Annotated 1953
30          17-27a-534, Utah Code Annotated 1953
31          57-31-101, Utah Code Annotated 1953
32          57-31-201, Utah Code Annotated 1953
33          57-31-202, Utah Code Annotated 1953
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 10-9a-538 is enacted to read:
37          10-9a-538. Short-term rentals.
38          (1) As used in this section, "short-term rental" means the same as that term is defined
39     in Section 57-31-101.
40          (2) A municipality that allows short-term rentals within the municipality shall adopt
41     ordinances or regulations to promote the public health, public safety, and general welfare of the
42     short-term rental occupants.
43          (3) In issuing a permit for a short-term rental, a municipality shall comply with Title
44     57, Chapter 31, Short-term Rentals.
45          Section 2. Section 17-27a-534 is enacted to read:
46          17-27a-534. Short-term rentals.
47          (1) As used in this section, "short-term rental" means the same as that term is defined
48     in Section 57-31-101.
49          (2) A county that allows short-term rentals within an unincorporated area of the county
50     shall adopt ordinances or regulations to promote the public health, public safety, and general
51     welfare of the short-term rental occupants.
52          (3) In issuing a permit for a short-term rental, a county shall comply with Title 57,
53     Chapter 31, Short-term Rentals.
54          Section 3. Section 57-31-101 is enacted to read:
55     
CHAPTER 31. SHORT-TERM RENTALS

56     
Part 1. General Provisions

57          57-31-101. Definitions.
58          As used in this chapter:

59          (1) "One-hour drive distance" means the distance, as determined by the municipality or
60     county issuing a permit under Section 57-31-201, that a vehicle would travel in one hour
61     traveling the applicable speed limit following the most reasonably direct path under normal
62     road and traffic conditions.
63          (2) "Owner" means the individual who:
64          (a) owns the property that is operated as a short-term rental; or
65          (b) owns the largest percentage of an interest in a corporation, limited liability
66     company, partnership, or other entity that owns the property that is operated as a short-term
67     rental.
68          (3) (a) "Short-term rental" means any of the following, offered for use as residential
69     lodging, in exchange for compensation, for a period of less than 30 consecutive days:
70          (i) a single-family residence;
71          (ii) a unit of a multi-family residence that is a duplex, triplex, or fourplex;
72          (iii) a town home;
73          (iv) a condominium unit;
74          (v) an accessory dwelling unit, as defined in Section 10-9a-103; or
75          (vi) a bedroom, with an egress window, within a structure described in Subsections
76     (3)(a)(i) through (v).
77          (b) "Short-term rental" does not include:
78          (i) a unit within a qualified low-income building, as defined in Section 42(c), Internal
79     Revenue Code;
80          (ii) a structure for which a certificate of occupancy has not been issued;
81          (iii) a space within a structure for which a certificate of occupancy has not been issued;
82          (iv) a structure or unit that is sublet;
83          (v) a hotel;
84          (vi) a motel; or
85          (vii) an inn.
86          Section 4. Section 57-31-201 is enacted to read:
87     
Part 2. Short-term Rental Requirements

88          57-31-201. Permits -- Designated local contact -- Course requirement.
89          (1) (a) An owner may not operate a residential property as a short-term rental unless:

90          (i) as applicable:
91          (A) the municipality in which the proposed short-term rental is located issues the
92     owner a permit to operate the short-term rental; or
93          (B) the county in whose unincorporated area the proposed short-term rental is located
94     issues the owner a permit to operate the short-term rental; and
95          (ii) the State Tax Commission issues the owner a sales and use tax license for the
96     short-term rental.
97          (b) A municipality or county may issue a permit under Subsection (1)(a)(i) only if:
98          (i) the owner designates as a local contact for the short-term rental an individual who
99     resides within a one-hour drive distance from the short-term rental;
100          (ii) the owner certifies that:
101          (A) the owner will, during the entire period of operation of the short-term rental,
102     maintain a local contact for the short-term rental who resides within a one-hour drive distance
103     of the short-term rental; and
104          (B) the individual designated as a local contact for the short-term rental has not been
105     designated as a local contact for more than 19 other short-term rentals;
106          (iii) the owner and the designated local contact complete a short-term rental education
107     course that is:
108          (A) provided by a college, university, or professional organization; and
109          (B) approved by the municipality or county that issues the permit; and
110          (iv) the applicable municipal or county requirements for obtaining a permit for a
111     short-term rental are met.
112          (2) A municipality or county shall revoke a license issued under Subsection (1)(a)(i) if:
113          (a) an owner fails to maintain for the short-term rental an individual as a local contact
114     who lives within a one-hour drive distance of the short-term rental; or
115          (b) an individual designated as a local contact for the short-term rental is designated at
116     the same time as a local contact for more than 19 other short-term rentals.
117          (3) A municipality or county may enact ordinances to ensure compliance with the
118     requirements of this part.
119          (4) An owner shall ensure that the name and telephone number of the designated local
120     contact is posted in a conspicuous place within the short-term rental.

121          (5) An owner shall include the owner's short-term rental permit number in any listing
122     or advertisement that offers the short-term rental for reservation or occupancy.
123          Section 5. Section 57-31-202 is enacted to read:
124          57-31-202. Safety requirements -- Limitations.
125          (1) (a) Subject to Subsection (1)(b), an owner may not allow more than four occupants
126     in a short-term rental described in Subsections 57-31-101(3)(a)(i) through (v).
127          (b) An owner may allow two additional occupants in a short-term rental described in
128     Subsection (1)(a) for each additional bedroom after the first bedroom in the short-term rental.
129          (2) An owner shall ensure that a short-term rental has, on each level where occupants
130     are allowed, at least one functioning smoke detector, carbon monoxide detector, and fire
131     extinguisher.
132          (3) An owner may not:
133          (a) allow an area within a short-term rental to be subdivided into multiple short-term
134     rental units; or
135          (b) accommodate more than one reservation at a time in a single short-term rental.
136          Section 6. Effective date.
137          This bill takes effect on May 1, 2024.