Short-term rentals in Ketchum, explained properly.

Idaho Code section 67-6539(2)(a)(i) lists requiring owner occupation for any amount of time among the requirements that a city may not impose on short-term rentals. Ketchum's chapter 5.09 defines the resident as the person or entity holding title (owner) or lease rights (renter) to the property, issues the permit in the resident's name, and requires owner consent when the applicant is a renter (Sec. 5.09.030(D)). The code's definition of a short-term rental includes a resident-occupied residential home, meaning one where the resident lives on the parcel at least six months of the year. The chapter also requires a local representative who lives within 20 vehicular miles of the City limits (see below).

Sec. 5.09.030(H) says that within residential zones short-term rentals shall have a minimum two-night stay. The chapter does not set a minimum stay for other zones. Idaho Code section 67-6539, as amended by House Bill 583 (2026 Session Law chapter 22, effective July 1, 2026), is the state law on city short-term rental rules. The statute lists limits on the days a property can be rented among the requirements a city may not impose and bars any ordinance with the express or practical effect of prohibiting a type of short-term rental. Ketchum's chapter 5.09 is still published in the City code as adopted by Ordinance No. 1230 (effective April 1, 2022) in the version read on October 14, 2026. The pages read do not say whether the City still applies the two-night minimum, so this rule needs review.

Sec. 5.09.030(H) says that within residential zones short-term rentals shall be limited to one short-term rental per parcel. Idaho Code section 67-6539, as amended by House Bill 583 (2026 Session Law chapter 22, effective July 1, 2026), is the state law on city short-term rental rules. Subsection (2)(a)(xvi) lists restricting the number of short-term rentals in a county or city among the requirements a city may not impose; the statute's list does not mention a per-parcel limit by name. Ketchum's chapter 5.09 is still published in the City code as adopted by Ordinance No. 1230 (effective April 1, 2022) in the version read on October 14, 2026. Because the sources can be read two ways on a per-parcel limit, this rule needs review.

Sec. 5.09.040(G) says a short-term rental permit with a proposed occupancy of 20 or more guests requires a conditional use permit that meets the general standards and findings for a conditional use permit in title 17 and the standards for all short-term rentals in the chapter, with additional on-site permit posting requirements. Idaho Code section 67-6539, as amended by House Bill 583 (2026 Session Law chapter 22, effective July 1, 2026), is the state law on city short-term rental rules. Subsection (2)(a)(xiv) lists requiring a conditional use permit in a residential zone among the requirements a city may not impose. Title 17 and the zones where a 20-guest rental could be sited were not read, so how the statute applies to this requirement is unsettled and the rule needs review.

Sec. 5.09.040(D) requires each short-term rental to designate and list a local representative who resides within 20 vehicular miles of the City limits. The representative must be able to respond in a timely manner; if the City cannot reach the representative in a timely manner more than twice during the permit term, that is a violation. A change of representative is made by filing an application amendment, and failing to notify the City of a change is a violation. As a permit condition the City may require that owners and residents within 200 feet be given the name and telephone number of the owner or representative. Idaho Code section 67-6539, as amended by House Bill 583 (2026 Session Law chapter 22, effective July 1, 2026), is the state law on city short-term rental rules. It says a city may require only the safety measures it lists (smoke alarms, a fire extinguisher and carbon monoxide detector on each floor, escape ladders, occupancy limits and an exits-and-emergency-contact handout), and lists requiring professional property management and notices to neighboring properties among the requirements a city may not impose. Ketchum's chapter 5.09 is still published in the City code as adopted by Ordinance No. 1230 (effective April 1, 2022) in the version read on October 14, 2026. The two sources conflict on this requirement, so it needs review.

Sec. 5.09.040 requires, for every short-term rental: operable bedroom windows for emergency egress under the adopted building and fire codes; smoke alarms; a carbon monoxide detector on each floor if there is a garage, solid fuel appliance or gas appliance; one 2 A:10BC type fire extinguisher per floor, mounted visibly with its top between three and five feet above the floor; an affidavit of compliance and a City self-inspection checklist with each new or renewal application; and a fire safety plan reviewed and approved by the Fire Department and posted on site. The City may require an inspection on application, on complaint or in an enforcement action, and the permit must be posted inside the unit next to the front door with the representative and permittee contacts, maximum occupants, waste collection day and snowplowing and parking rules. Idaho Code section 67-6539, as amended by House Bill 583 (2026 Session Law chapter 22, effective July 1, 2026), is the state law on city short-term rental rules. It lets a city require smoke alarms in all sleeping areas, a fire extinguisher and carbon monoxide detector on each floor, escape ladders in sleeping areas above the ground floor, occupancy limits and an exits-and-emergency-contact handout, and lists requiring inspections, signage or notices, additional fire protection and additional parking among the requirements a city may not impose. Ketchum's chapter 5.09 is still published in the City code as adopted by Ordinance No. 1230 (effective April 1, 2022) in the version read on October 14, 2026. The code's inspection, fire safety plan, posting and parking items conflict with the statute's list, so this rule needs review.

Sec. 5.09.040(C)(7) says loud music, outdoor activities or any other source of noise that can be heard beyond the perimeter of the short-term rental premises shall not be generated from 10:00 p.m. to 8:00 a.m. the following day. Idaho Code section 67-6539(6) subjects short-term rental properties, owners and tenants to the noise, parking, nuisance, curfew and traffic ordinances that apply to other residential uses. Whether the City's STR-specific hours differ from its general noise ordinance was not checked because the general noise chapter was not read, so this rule needs review.

Sec. 5.09.050 treats noise, disturbances or nuisances in violation of City code, alcohol and illegal drug violations, and a failure by the permittee or local representative to meet the chapter's standards as violations. The first two violations in a 12-month period bring a warning notice and the third brings revocation of the permit; the City may relax or heighten these within its enforcement discretion, and other penalties in City code still apply. The City gives written notice, and the permit holder may appeal a suspension or revocation under chapter 17.144. After a revocation the owner cannot apply for another permit for the same dwelling unit for one year. Operating without a required permit is an infraction with a $100.00 fine, and each day is a separate offense; an advertisement for a short-term rental in violation of the code is prima facie evidence of a violation. These penalties rest on the permit requirement, which conflicts with Idaho Code section 67-6539(5) (see the permit rule), so this rule needs review.

Idaho Code section 67-6539, as amended by House Bill 583 (2026 Session Law chapter 22, in force July 1, 2026), says no county or city may enact or enforce an ordinance that has the express or practical effect of prohibiting any type of short-term rental, and no county or city may require a license, fee, permit, certification or registration to operate one. Local rules for health and safety may not put different restrictions or obligations on short-term rentals than on similar homes that are not rented short term. The statute lists examples that cities and counties may not impose, including owner occupancy for any amount of time, professional management, extra insurance, inspections, limits on the days a property can be rented, notices to neighbors, a conditional use permit in a residential zone, spacing from other short-term rentals and caps on their number. By ordinance a county or city may require only: smoke alarms in all sleeping areas; a fire extinguisher and a carbon monoxide detector on each floor; removable escape ladders in sleeping areas with a window above the ground floor; occupancy limits no stricter than the non-transient residential limits in the building codes adopted by the Idaho building code board; and an easily accessible handout showing exits, fire extinguishers, any first aid kits and an emergency phone number for the owner or manager. A short-term rental is classed as a non-transient residential use for zoning and building codes, and owners and guests remain subject to the noise, parking, nuisance, curfew and traffic rules that apply to other homes. Idaho Code section 63-1803 defines a short-term or vacation rental as a single-family house or dwelling unit, a condominium, cooperative or timeshare unit, or an owner-occupied home offered for a fee for 30 days or less.

The Idaho State Tax Commission lists the state sales tax rate as 6% and counts short-term rental accommodations for 30 days or less among taxable retail sales. Its lodging guide says Idaho sales tax is due on vacation homes and private residences rented for 30 days or less, and that these lodging taxes apply only to rentals of 30 days or less.

Idaho charges a travel and convention tax to occupants of hotel and motel rooms for stays of 30 days or less, and the Tax Commission says it also applies to vacation-home rentals. It does not apply to someone who stays more than 30 days continuously in the same room or space. The current rate is 2%. The Tax Commission's lodging guide lists the tax as due on vacation homes and private residences, alongside Idaho sales tax. Returns are filed on Form 1152 in the Tax Commission's online system (TAP).

The Tax Commission says that to offer short-term lodging you need a travel and convention tax permit, a regular seller's permit and, if the rental is in an auditorium district, an auditorium district tax permit, applied for through the Idaho Business Registration (IBR); permits arrive in about 10 days. You technically don't need these permits if you rent only through short-term rental marketplaces that collect and send in the taxes for you, but you must get them if you rent the lodging any other way or charge for services or fees on which the marketplace does not collect tax. These are state tax permits, not a local license to operate.

Idaho Code section 63-1804 requires a short-term rental marketplace to register with the State Tax Commission to collect, report and pay Idaho sales and use and travel and convention taxes, and any local taxes the Tax Commission administers, on the stays it facilitates, and to collect, report and pay taxes imposed by any local government on the operator or guest. Since July 1, 2026 (House Bill 583), an owner who offers a short-term rental directly to a guest without a marketplace must comply with the same requirements. The Tax Commission says marketplaces are responsible for collecting all taxes due on the lodging they arrange, lodging providers are responsible for the taxes on stays they arrange directly, and hosts should not report sales or tax that a registered marketplace already reports.