A piece of legislation being considered at the Arkansas State Capitol in Little Rock addresses short-term rentals in the state, and it has drawn the concern of some local residents and officials. Last week, Mountain Home Mayor Hillrey Adams was among those testifying before the House Committee on City, County and Local Affairs last week to express his concern about Senate Bill 197, a bill that would limit local governments ability to regulate short-term rentals. After all of the testimony was heard, the bill was temporarily delayed.
Mayor Adams says he was not in favor of the legislation since the Mountain Home City Council passed an ordinance to regulate short-term rentals in the city.
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A short-term rental is defined as a rental for someone to stay in for 30 days or less. The rentals gaining popularity include houses being purchased or garages or other types of buildings being converted. These types of rentals will then be advertised at various online platforms including AirBNB and VRBO.
Other cities have passed regulations on short-term rentals that are different from Mountain Home. Mayor Adams says he was asked by the Arkansas Municipal League to testify in front of the committee and demonstrate what is good for one city may be different from another.
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Currently, short-term rental owners and hosts are required to collect the advertising and promotion tax on their own. However, 11 other cities in Arkansas have a voluntary collection agreement in place with the online platforms. Mayor Adams says Mountain Home attempted to enter a similar agreement with the platforms, but they reportedly refused and said they wouldn’t take on anymore cities in that manner, and that was one of the things he addressed to the committee.
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Senate Bill 197 was delayed to allow for the consideration of amendments to the legislation. Mayor Adams says he expects the matter to be taken back up when the legislature reconvenes after spring break.
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