Overview: STR Status in Hailey, ID

Yes, short-term rentals are explicitly allowed in Hailey, Idaho. The city permits short-term rentals for properties rented for fewer than 30 consecutive days, subject to tax collection and reporting requirements. Under Hailey's Local Option Tax law, any rental under 30 days in length must collect and pay the local option tax of 4% of gross rental revenue, which should be collected by the owner and submitted to the City of Hailey on a monthly or quarterly basis.

How to Start a Short-Term Rental Business in Hailey, ID

Starting a short-term rental business in Hailey requires compliance with both city and state requirements. The process involves several key steps that must be completed before you can legally operate.

Step 1: Investigate Local Zoning and Property Requirements

Before purchasing or converting a property, verify that short-term rentals are permitted in your intended zone. While Idaho state law permits short-term rentals in residential zones, local zoning regulations may still apply specific restrictions. Hailey's zoning ordinances determine where STRs can operate, with potential limitations on:

• Specific zoning districts where STRs are permitted
• Density limits to prevent concentration of vacation rentals
• Distance separation requirements between STR properties
• Maximum occupancy limits based on property size and bedroom count

Step 2: Obtain Required Tax Permits and Licenses

Contact the City Clerk's office to obtain the necessary tax permit for your short-term rental business. This permit is essential for legal operation and tax collection compliance. For questions about permits, contact Mary Cone at 788-4221 x 11.

Step 3: Register for State Tax Collection

In addition to local requirements, you must register with the Idaho State Tax Commission to obtain a seller's permit for collecting state taxes. This registration enables you to legally collect state sales tax and travel and convention tax from guests.

Step 4: Establish Local Management

Many short-term rental operators designate a local contact person to respond to issues promptly. This requirement is particularly important for out-of-state owners who cannot address emergencies or complaints directly.

Required Documents, Permits, Licenses, and Guidelines

Operating a short-term rental in Hailey requires maintaining specific documentation to demonstrate compliance with local and state regulations.

Essential Documentation:

• Proof of property ownership (deed or property tax statement)
• Local tax permit from the City Clerk's office
• State seller's permit from the Idaho State Tax Commission
• Property details including address, rental type (whole house, individual room), and specifications
• Owner identification and reliable contact methods
• Local contact information for the property management person or company
• Tax identification numbers for state and local tax collection
• Compliance certifications for safety equipment and standards (smoke detectors, carbon monoxide alarms, fire extinguishers)

Licensing Requirements:

• City Tax Permit: Required for all short-term rental operations in Hailey, issued by the City Clerk's office
• State Seller's Permit: Required for collecting state sales tax and travel and convention tax

Specific Regulations for Short-Term Rentals in Hailey, ID

City-Level Regulations (Hailey):

Local Option Tax: The most significant local requirement is the 4% local option tax on short-term rentals under 30 days. This tax must be collected by the property owner and submitted to the City of Hailey on either a monthly or quarterly basis. The tax applies to the gross rental amount and should be remitted according to the schedule selected by the operator.

Tax Collection Timeline: Tax payments must be submitted either monthly or quarterly, as chosen by the operator. Consistent compliance with the selected timeline is essential to avoid penalties.

County-Level Regulations (Blaine County):

As of the available information, no county-specific short-term rental regulations were identified. Blaine County appears to defer to city regulations for STR oversight within municipal boundaries.

State-Level Regulations (Idaho):

Idaho maintains a relatively hands-off approach to short-term rental regulation at the state level, focusing primarily on tax collection rather than operational licensing.

State Tax Requirements:

• 6% state sales tax on short-term accommodations
• 2% Travel and Convention Tax on short-term accommodations
• Combined state tax rate: 8% total (6% + 2%)

Property Rights Protection: Recent Idaho Supreme Court ruling in Idaho Association of Realtors v. City of Lava Hot Springs has established important precedent affecting Hailey and similar communities. The court found that cities cannot prohibit non-owner-occupied vacation rentals in residential zones, as this violates Idaho's Short-term Rental and Vacation Rental Act. This ruling may affect existing local restrictions and requires careful evaluation of any zoning limitations that could constitute a de facto prohibition.

Contact Information for Local Authority

For inquiries about short-term rental regulations, permits, and compliance in Hailey, contact the following:

City of Hailey Contact Information:

City Clerk's Office (Tax Permits)

• Contact Person: Mary Cone
• Phone: 788-4221 x 11
• Role: Issues tax permits for short-term rental businesses and handles local option tax collection

City Administrator's Office

• Contact Person: Heather Dawson, City Administrator
• Phone: 208-788-4221, ext. 18
• Role: Handles administrative oversight of city regulations and policy questions

Mailing Address: City of Hailey Hailey City Hall (Address should be verified with city officials)

Website: haileycityhall.org For current city information, tax forms, and regulatory updates

State of Idaho Contact Information:

Idaho State Tax Commission

• Website: tax.idaho.gov
• Phone: 208-334-7660
• Address: 800 Park Blvd, Plaza IV, Boise, ID 83712
• Role: Handles state tax registration and collection for short-term rental operators

Links to Source Pages

Official City Documents:

1. Hailey Local Option Tax Information - haileycityhall.org/wp-content/uploads/2020/12/09-20-16-Rentals-By-Owner-Subject-to-Local-Option-Tax.pdf
   • Official city press release outlining local option tax requirements

State Statute:

2. Idaho Short-term Rental and Vacation Rental Act - legislature.idaho.gov/statutesrules/idstat/title67/t67ch65/sect67-6539/
   • State law establishing property rights protections for short-term rentals

Legal Analysis:

3. Idaho Supreme Court Decision - isc.idaho.gov/opinions/50888.pdf
   • Official court ruling affecting local STR restrictions
4. Court Decision Summary - isc.idaho.gov/opinions/50888summ.pdf
   • Concise summary of the Supreme Court decision implications

Additional Reference:

5. Comprehensive Idaho STR Guide - www.checkmaterentals.com/blog/idaho-airbnb-str-laws
   • General reference for Idaho short-term rental laws and regulations

Important Note: The regulatory landscape for short-term rentals in Idaho is evolving, particularly following the Idaho Supreme Court ruling that invalidated certain municipal restrictions. Property owners and investors should stay informed about ongoing regulatory developments and consult with local authorities to ensure current compliance with all applicable requirements. The combination of state-level property rights protections with local tax requirements creates a unique regulatory environment that offers opportunities for compliant short-term rental operations while maintaining community standards through taxation rather than prohibition.