Guide to Short-Term Rentals (STRs) in Arco, ID

Overview: Short-term rentals (typically rentals of less than 30 days) are allowed in Arco, Idaho, under Idaho state law. As of the information provided, there are no specific city ordinances in Arco regulating STRs beyond state requirements. Idaho state law currently restricts local governments from imposing significant regulations on STRs, generally limiting them to rules protecting public health and welfare.

1. Allowing Short-Term Rentals in Arco, ID

• State-Level Permission: STRs are permissible statewide in Idaho. Idaho law (as referenced in the provided Idaho Mountain Express editorial) prevents cities and counties from enforcing most regulations on STRs, except those necessary to protect public health and safety.
• No City-Specific Ban: The provided Arco Comprehensive Plan (Adopted December 11, 2023) does not mention any prohibitions or restrictions on STRs within the city limits. It focuses on broader land use, economic development (including supporting tourism/travelers), and community design goals, which implies STRs are a generally permissible land use under existing zoning if the property meets the underlying zone's requirements (e.g., residential, commercial).
• Key State-Level Legislation (Potential Impact): The provided content references Idaho House Bill 506 (HB506), introduced on February 8, 2024. This bill, if passed, would significantly curtail the limited powers cities and counties currently have to regulate STRs. It would prohibit requiring inspections, fire safety upgrades, sprinkler systems, egress routes, signage, or compliance with current building codes. It would only require owners to disclose to tenants that the rental lacks items like smoke detectors, CO detectors, fire extinguishers, or first aid kits. Investors must monitor the status of this bill closely, as its passage could further reduce local oversight and safety requirements.

2. Starting a Short-Term Rental Business in Arco

1. Zoning Compliance: Ensure your property is located in a zoning district where the intended use (e.g., "Lodge/Cabin," "Hotel/Motel," "Residential Rental," or similar) is a permitted or conditional use. The Comprehensive Plan outlines land use types (Commercial, Residential, Mixed-Use, etc.), but specific zoning classifications and permitted uses are detailed in the city's Zoning Ordinance, which was not provided. Action Required: Contact the City Clerk or Planning & Zoning Department to confirm zoning compliance for your specific property.
2. Business License: Check if Butte County requires a business license for operating an STR within city limits. Action Required: Contact Butte County Clerk's Office (208-527-3021) for licensing requirements.
3. State Tax Registration: Register with the Idaho State Tax Commission to collect and remit the Idaho State Sales Tax and any applicable Local Option Tax (LOT). Action Required: Visit the Idaho State Tax Commission Website or call (208) 334-7660.
4. Property Insurance: Obtain adequate general liability and property insurance coverage specifically for short-term rental operations. Standard homeowners insurance may not suffice.
5. Safety & Maintenance: While state law limits local mandates, Idaho law requires adherence to public health and welfare protections. Best Practice: Ensure your STR has functioning smoke detectors, carbon monoxide detectors (if applicable), fire extinguishers, and clear egress routes. Provide a first aid kit. Maintain the property to a high safety standard. This mitigates risk under current law and prepares for potential future regulations.
6. Set Up Rental Operations: Choose a booking platform (Airbnb, VRBO, etc.) or direct booking method. Create a property management plan (cleaning, maintenance, guest communication).

3. Required Documents, Permits, Licenses, and Guidelines

• Potential City/Permit Needs:
  • Zoning Clearance/Use Permit: May be required depending on the specific zoning district and whether STRs are defined as a specific use. (Confirmation with City needed - not in provided content).
  • Building Permit: Required if any structural changes, significant renovations, or changes of use (e.g., converting a single-family home to a small inn) are planned. Compliance with building codes applies during construction/renovation.
  • Business License: Potentially required by the County or City. (Confirmation with City/County needed - not in provided content).
• State-Level Requirements:
  • Idaho State Sales Tax Registration: Mandatory to collect/remit state sales tax and any applicable Local Option Tax (LOT). Registration is done through the Idaho State Tax Commission. [Source: Idaho Mountain Express Editorial Context - Idaho State Law allows STRs with minimal local regulation].
  • Compliance with State Public Health & Welfare Laws: Owners must comply with general state laws related to health, safety, and housing standards (e.g., maintaining safe premises). [Source: Idaho Mountain Express Editorial Context - State law limits local regs beyond public health/welfare].
• Required Disclosures (Under Proposed/Contingent Legislation): If HB506 (or similar legislation) becomes law, owners would be required to disclose to guests that the rental lacks smoke detectors, CO detectors, fire extinguishers, or first aid kits. (This is not a current requirement but a proposed one under specific legislation).
• Tax Reporting: Guests may be subject to Local Option Tax (LOT) if applicable in Butte County. You are responsible for collecting and remitting applicable taxes. [Source: Idaho State Tax Commission].
• Governing Documents: Ensure compliance with any existing Homeowners Association (HOA) rules or covenants, if applicable.

4. Specific Regulations (City, County, State)

• City of Arco:
  • No Specific STR Ordinance Found: The provided Comprehensive Plan (2023) and other Arco content do not contain any specific ordinances or regulations unique to short-term rentals within the city.
  • General Zoning & Nuisance Codes Apply: STRs must operate within the bounds of the underlying zoning district. City ordinances related to general nuisances, noise, parking, trash, and property maintenance would still apply to STR guests and properties.
• Butte County:
  • No Specific STR Ordinance Found: No county-specific STR regulations were found in the provided content.
  • Potential Business License: County business licensing requirements may apply. (Contact County Clerk - see contact info).
• State of Idaho:
  • Limited Local Regulation Authority: State law restricts cities and counties from imposing significant regulations on STRs beyond public health and welfare protections.
  • Sales Tax & LOT Collection: STR operators must collect and remit Idaho State Sales Tax and any applicable Local Option Tax (LOT). Registration with Idaho State Tax Commission is required.
  • Pending Legislation (HB506): As discussed, HB506 (if passed) would significantly weaken local authority over STRs, prohibiting most inspections and safety requirements beyond mandated disclosures.
  • Preemption of Local Bans: Current state law likely preempts any attempt by local governments to ban STRs entirely.

5. Contact Information for Local Authority (STR Oversight)

• City of Arco:
  • City Hall: (208) 527-3111
  • Website: City of Arco Official Website (Note: Website URL provided in comprehensive plan).
  • Address: 302 West Grand Avenue, Arco, ID 83213
  • Key Contacts: Contact the City Clerk (Maribel Calahan) or Mayor (Grady Parsons) for zoning/permit questions. For building permits, contact city hall.
• Butte County:
  • County Clerk: (208) 527-3021
  • County Website: Butte County Official Website (Use to find relevant departments like Planning & Zoning).
  • Address: 248 West Dillon Street, Arco, ID 83213
  • Key Contacts: Contact the County Clerk for business licensing and Planning & Zoning Department for land use/zoning questions outside city limits or within the Area of City Impact.
• Idaho State Tax Commission:
  • Phone: (208) 334-7660
  • Website: Idaho State Tax Commission (For sales tax/LOT registration and reporting).

6. Source Links

1. Idaho Mountain Express Editorial (HB506 Discussion): https://www.mtexpress.com/opinion/editorials/idaho-shouldn-t-allow-vacation-rentals-to-threaten-lives/article_77befbcc-d5d6-11ee-963d-bf5b569fb672.html
2. City of Arco Comprehensive Plan (2023): https://cityofarco.municipalimpact.com/documents/263/ARCO_COMPREHENSIVE_PLAN_-_FINAL.pdf

Disclaimer: This guide is based solely on the provided content. It is highly recommended that investors directly contact the City of Arco (City Clerk or Planning/Zoning) and Butte County (Clerk or Planning/Zoning) to confirm current zoning requirements, permit needs, and any local regulations or pending legislation that may affect STR operations. Monitor legislative developments regarding HB506. Always comply with applicable federal, state, and local laws.