STR hosts in Jackson, Wyoming, face new regulations

Short-term rental (STR) operators in residential areas of Jackson, Wyoming, face new rules under an ordinance that went into effect January 1, 2024.

The new law defines an STR as the “rental of all or a portion of a residential unit such that occupancy is limited to fewer than 30 consecutive days.” STRs are allowed in residential areas, defined as locations outside the town’s Lodging Overlay/Planned Resort Zone. STR hosts in these areas must obtain a basic use permit (BUP) from the town’s Planning Department and a business license from the Finance Department. Both types of permits must be renewed annually.

Under the town regulations, other requirements for STRs in residential areas include:

• STRs are limited to hosting a maximum of three separate stays per calendar year.
• Housing units can be rented for short terms for a maximum of 60 total rental nights per calendar year.
• Hosts must notify neighbors within 200 feet of the property where they’re operating an STR.
• If a property is part of a Homeowners Association (HOA), the STR operator must obtain written approval from the HOA before the city will issue a BUP.
• STR operators that violate the requirements will not be issued a BUP for a minimum of five years.

For approved STRs already operating inside the Lodging Overlay, the town will automatically convert the existing STR business license into a regular business license, to be renewed annually.

“With the prior rules, the Town received a significant number of complaints about negative impacts from noise, parking and community character related to short-term rentals. The old rules made it very difficult to identify when short-term rentals were truly in violation, leaving both neighbors and the Town dissatisfied. These new rules are clearer, more enforceable and are much more protective of residential neighborhoods,” the Town of Jackson said in a statement.

STRs in Jackson are subject to state and local lodging taxes. Short-term rental hosts are required to register with the Wyoming Department of Revenue for a sales tax license, collect taxes from guests, and file regular tax returns.

In Wyoming, short-term rental marketplaces such as Airbnb and Vrbo are required to collect lodging taxes on behalf of hosts when guests pay for their rentals. If all transactions for an STR go through a short-term rental marketplace that collects lodging taxes, the operator isn’t required to register with the state or collect lodging taxes. However, if taxes aren’t being collected for a host, such as when guests book directly with them rather than through a marketplace, the operator is responsible for lodging tax compliance.

Avalara MyLodgeTax can help automate tax compliance for Wyoming hosts, including registration and filing. For more on lodging taxes in Wyoming, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.