Overview: Are Short-Term Rentals Allowed in Idaho Falls?

Yes, short-term rentals are explicitly allowed in Idaho Falls. Idaho state law (Idaho Code § 67-6539) protects short-term rentals by prohibiting local governments from enacting ordinances that have "the express or practical effect of prohibiting short-term rentals or vacation rentals." This means Idaho Falls cannot ban STRs outright, though the city can implement reasonable regulations to protect public health, safety, and welfare.

How to Start a Short-Term Rental Business in Idaho Falls

1. Research Local Requirements

Contact the Idaho Falls Planning Department and Building Division to understand current local regulations. While state law protects STR operations, local jurisdictions can still implement operational requirements.

2. Verify Zoning Compliance

Short-term rentals are classified as residential land use for zoning purposes under Idaho law, subject to all applicable residential zoning requirements.

3. Register for Tax Collection

You must register with the Idaho State Tax Commission to collect:

• 6% Idaho state sales tax
• 2% Idaho travel and convention tax
• Any applicable local option taxes

4. Obtain Business License

Check with Idaho Falls City Clerk's office for general business licensing requirements that may apply to your STR operation.

5. Secure Appropriate Insurance

Standard homeowners insurance typically doesn't cover commercial STR activities. Consider specialized short-term rental insurance with adequate liability coverage.

Required Documents, Permits, and Guidelines

Based on available information, Idaho Falls may require:

Basic Documentation

• Proof of property ownership
• Property details and specifications
• Owner identification and contact information
• Local contact person information (if owner is not local)

Safety Requirements

• Working smoke detectors
• Carbon monoxide detectors (for properties with gas appliances or fireplaces)
• Fire extinguishers
• Compliance with building codes
• Emergency exit plans

Tax Registration

• Idaho State Tax Commission seller's permit
• Documentation for tax collection and remittance

Note: Specific licensing requirements for Idaho Falls were not detailed in available sources. Contact the city directly at (208) 612-8276 for current requirements.

Specific STR Regulations

State-Level Protections

Under Idaho Code § 67-6539:

• Counties and cities cannot prohibit short-term rentals
• STRs are classified as residential land use for zoning
• Local governments can implement reasonable health, safety, and welfare regulations
• Counties and cities cannot regulate short-term rental marketplace operations

Local Authority

While Idaho Falls cannot ban STRs, the city may regulate:

• Licensing and permitting procedures
• Safety standards and inspections
• Occupancy limits
• Parking requirements
• Noise and nuisance standards
• Local contact requirements

Tax Obligations

• State Sales Tax: 6% on all rental income
• Travel and Convention Tax: 2% on short-term accommodations
• Local Option Taxes: Verify with Idaho Falls for any additional local taxes

Contact Information

Idaho Falls City Officials

Planning Department:

• Phone: (208) 612-8276
• Website: idahofallsidaho.gov

City Clerk's Office (for licensing):

• Contact the main city number for current licensing requirements

Building Division:

• For safety and building code compliance questions

Idaho State Tax Commission

• For tax registration and compliance
• Website: tax.idaho.gov

Source Links

1. Idaho State Legislature - Idaho Code § 67-6539
2. Idaho Falls FAQ Document
3. Proper Insurance Idaho STR Guide
4. Checkmate Rentals Idaho Guide

Important Notes

• Idaho Falls' specific regulations may have evolved since available documentation
• Always verify current requirements directly with city officials before beginning operations
• State law provides strong protection for STR operations while allowing reasonable local regulation
• Compliance with safety standards and tax obligations is essential for legal operation

This guide provides a foundation for understanding STR regulations in Idaho Falls, but direct consultation with city officials is recommended for the most current and complete requirements.