Short-term rentals in Lincoln, explained properly.

The City's page gives the 24-hour hotline for neighborhood concerns and a Complaint Portal, and names Planning and Development Services (402-441-7521) for questions about short-term rental regulations.

The City's page says operators must obtain a license if advertising or operating a short-term rental to avoid possible enforcement actions. Fine amounts and procedures are in code text we haven't reviewed.

The Department of Revenue says there is a 1% Nebraska Lodging Tax in addition to the County Lodging Tax. Its General Information Letter 1-19-1 (August 22, 2019) says the lodging tax base is the total consideration paid by the guest, whether paid to the hotel or tourist home owner or another retailer, and does not include separately stated charges for food or beverages or personal services rendered to the guest. For these taxes a hotel includes a private home rented out in whole or in part for under 30 days, as defined in section 81-3707, and the same letter applies them to rentals for less than 30 days. This page does not total the state, county and local taxes, and the state sales tax rate hasn't been reviewed. The Department of Revenue lists county rates.

Section 81-3716 lets the governing body of a county, after a public hearing, adopt a resolution imposing an additional sales tax of not more than 2% on the total consideration charged for occupancy of any space furnished by a hotel, if the county has created a County Visitors Promotion Fund and a visitors committee (subsection 1), and a second additional tax of not more than 2% if it has created a County Visitors Improvement Fund and a visitors committee (subsection 2). These taxes are in addition to the tax in section 81-3715 or any other sales tax imposed or authorized. The Department of Revenue publishes a listing of county lodging tax rates; we haven't reviewed that listing, so confirm the Lancaster County rate with the Department of Revenue.

General Information Letter 1-19-1 (August 22, 2019) says LB 284 (2019) expanded the sales tax and lodging tax collection and filing duties to marketplace platforms that facilitate short-term rentals, effective April 1, 2019. Hotel or tourist home owners are relieved of the duty to collect and remit these taxes on sales facilitated by a platform if the platform has reported and remitted them to the Department of Revenue, but must collect and remit on sales that are not facilitated by a platform. The letter also says that, because LB 284 now requires platforms to collect and remit, the Department will not enter into separate agreements with platforms under LB 57 (2019), which had allowed such agreements. The Department's page on remote sellers and marketplace facilitators lists this letter. We haven't reviewed which platforms are covered; check with the platform and the Department of Revenue.

Section 18-1758 (Laws 2019, LB 57) defines a municipality as a city or village and a short-term rental as a residential property, including a single-family dwelling or a unit in a condominium, cooperative or time-share, rented wholly or partly for a fee for a period not longer than thirty consecutive days. A municipality may adopt or enforce a rule that specifically regulates short-term rental property only if it demonstrates the primary purpose is to protect public health and safety; the statute lists fire and building codes, health and sanitation, traffic control, solid or hazardous waste and pollution control, and an emergency contact designation. A municipality may impose a sales tax or occupation tax on short-term rentals if otherwise permitted by law, and may limit or prohibit use of a short-term rental only if the law limits or prohibits it for housing sex offenders, operating a structured sober living home, selling illegal drugs, selling alcohol or another activity needing a permit under the Nebraska Liquor Control Act, or operating a sexually oriented business. Land-use rules, including residential use and other zoning, noise and other nuisances, and property maintenance, must apply to a short-term rental in the same manner as to another similar property. The section does not affect the regulations of a private entity such as a homeowners association. The same text appears in LB 57 as approved by the Governor on March 7, 2019.