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HomeMy WebLinkAboutProposed Ordinance - 5/5/20261 SALT LAKE CITY ORDINANCE No. _____ of 2026 (Amending the text of Title 5 of the Salt Lake City Code pertaining to short term rental business licenses) An ordinance enacting Chapter 5.13 of the Salt Lake City Code pertaining to short-term rental business licenses. WHEREAS, the city desires to provide for reasonable regulation of short-term hospitality uses; WHEREAS, short-term rental businesses place unique administrative and enforcement burdens on the city requiring a unique licensure process; WHEREAS, the Salt Lake City Council has determined that the following ordinance promotes the health, safety, and public welfare of the citizens of the city; and WHEREAS, the City Council has determined that adopting this ordinance is in the city’s best interests. NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Enacting Chapter 5.13 of the Salt Lake City Code. That Chapter 5.13 in Title 5 of the Salt Lake City Code (Business Taxes, Licenses and Regulations), is hereby enacted as follows: CHAPTER 5.13 SHORT TERM RENTALS SECTION: 5.13.010: Definitions 5.13.020: License; Required for Short-Term Rentals 5.13.030: License; Application 5.13.040: License; Fees 5.13.050: License; Issuance Restrictions 2 5.13.060: Investigation; By City 5.13.070: Issuance of License 5.13.080: Effect of License Issuance 5.13.090: Operational Standards 5.13.100: Enforcement SECTION 5.13.010: DEFINITIONS: For the purpose of administering and enforcing the provisions of this chapter, the following definitions shall apply: BOOKING PLATFORM: Any marketplace, website, or application through which short-term rentals are advertised or booked. DWELLING: See definition in 21A.62.040. GUEST: Any person who rents a short term rental. AGENT: Any person engaged in the business of offering, managing or handling the day to day business of a short-term rental business on behalf of a licensee. LOCAL CONTACT PERSON: A person designated by the licensee who resides or has an office within Salt Lake County and is available to respond to issues within two hours. PROPERTY OWNER: A person with record ownership of a property according to the Salt Lake County Recorder’s Office. SHORT-TERM RENTAL (STR): A building or portion thereof constructed as a dwelling, where lodging is offered for a fee for a period less than thirty (30) days. SECTION 5.13.020: LICENSE; REQUIRED FOR SHORT-TERM RENTALS: A. License Required: It is unlawful for any person to operate, maintain, advertise, or allow the use of any dwelling as a short-term rental within the city without first obtaining a valid, unrevoked short term rental business license. B. One License Per Unit: A separate license shall be required for each dwelling unit used as a short-term rental. C. Non-Transferability: A short-term rental license shall not be transferable between persons or properties. Any change in ownership or control of the dwelling unit for which a short term rental license has been issued shall require a new license application in accordance with this Chapter. It shall be a violation of this Chapter to attempt to transfer a short-term rental license. 3 SECTION 5.13.030: LICENSE; APPLICATION: An application for a short-term rental business license shall be made to the business licensing division pursuant to Section 5.02.060. The requirements below shall be in addition to satisfying the application requirements in Section 5.02.060. In the event of a conflict between this Section and Section 5.02.060, this Section shall control. An application for a short-term rental business license shall include: A. The address and description of the dwelling; B. Proof of ownership or legal authority for the licensee to operate the short-term rental at the dwelling; C. The name, mailing address, telephone number, and email address of: 1. The person applying for the license (if different from the property owner); 2. The property owner; and 3. The local contact person; D. A certification that the dwelling complies with applicable building, fire, and safety codes shown on a checklist provided by the city; E. Local Contact Affidavit: An affidavit from the local contact person identified in the license application attesting that such local contact person: 1. Is designated for service of process; 2. Can be contacted 24 hours per day according to the contact information provided in the application, including by text message; 3. Is authorized by the licensee to take remedial action and to respond to any violation of Salt Lake City Code; 4. Maintains a residence or office located in Salt Lake County; and 5. Will respond to take remedial action for any violation of Salt Lake City Code within two hours of being contacted by the city. F. Landlord or Homeowners’ Association Consent: If the dwelling is subject to a rental agreement, or the rules of a homeowners’ association, condominium association, or similar governing body, the licensee shall provide written documentation demonstrating that the owner, landlord, and/or applicable association has consented to the use of the dwelling as a short-term rental. G. The signature of the of the licensee agreeing to comply with applicable ordinances and to authorize inspections as provided in this Chapter. SECTION 5.13.040: LICENSE; FEES: 4 The license fee for a short-term rental shall be established by the Salt Lake City consolidated fee schedule. The license required by this Chapter shall be renewed annually and the license fee shall be payable annually. SECTION 5.13.050: LICENSE; ISSUANCE RESTRICTIONS: A. No license shall be issued without submission of a complete application as required by Section 5.13.030 and payment of the license fee as required by Section 5.13.040. B. No license shall be issued or renewed unless the licensee designates a local contact person available twenty four (24) hours per day. If a local contact person resigns from such role then the associated license shall be suspended until a new local contact person is designated by the licensee. C. Multi-Family Buildings; License Limits: Buildings containing ten (10) or fewer dwelling units are limited to one (1) license per building. Buildings containing more than ten (10) dwelling units may only receive licenses for up to 10% of the units. For illustration purposes, if a building compromises 30 dwelling units, then a short term rental business license may only be issued for three (3) units. D. License Limit Per Licensee: No licensee, whether acting individually or in concert with others, shall be issued directly or designate any third party to hold more than one (1) short-term rental business license within the city. For purposes of this subsection, “person” includes any individual, partnership, corporation, limited liability company, trust, or other legal entity, and any entity under common ownership or control shall be considered a single person. Agents are ineligible for short-term rental business licenses unless they are the bona fide property owner or otherwise have the sole right of occupancy to a dwelling unit. E. Nuisance-Based Ineligibility: No license shall be issued or renewed for any short-term rental if the property, property owner, or licensee (if different from the property owner) is subject to an unresolved or active nuisance citation issued pursuant to Chapter 11.18. F. Zoning Restrictions: Subject to subsection C, no business license shall be issued or renewed for a short-term rental located on property unless such property is zoned MU2, MU3, MU5, MU6, MU8, MU11, M1, M1-A, D1, D2, D3, D4, GMU, RP, BP, A, or JRF. G. Other Outstanding Code Violations or Registrations: No short-term rental business license shall be issued or renewed for any property currently subject to regulation under Chapter 18.48 (Dangerous Buildings) or for which there are outstanding citations for unresolved violations of Titles 18 or 21A of the Salt Lake City Code. SECTION 5.13.060: INVESTIGATION; BY CITY: 5 A. An application for a license, or renewal thereof, may be referred for approval to the fire department or building services division. Upon such referral the directors of such departments, or their designees, shall determine, based on the self- certification provided under Subsection 5.13.030.D and any other relevant information, if an inspection is needed to determine whether or not the dwelling at issue complies with the self-certification standards established by the city. B. Nothing in this chapter shall be construed to prevent the city from performing inspections triggered by cause or complaint. The city shall have discretion to determine what constitutes cause or complaint sufficient to trigger an inspection by the city. C. Whenever it is necessary to make an inspection to enforce any provisions of this chapter, or whenever the city has reasonable cause to believe a violation exists in any building or upon any premises which makes such building or premises unsafe, dangerous or hazardous, the city's duly authorized representative may, after making reasonable efforts to obtain permission of the property owner or licensee, enter a residential property or premises to inspect it or to perform any other duties imposed by this chapter. D. It shall be a violation of this Chapter to refuse an inspection required by this Section. SECTION 5.13.070: ISSUANCE OF LICENSE: The business licensing division shall approve or deny the application for a short-term rental license after receiving recommendations from applicable departments and determining that an application complies with each and every provision of this Chapter and all other relevant provisions of Title 5. SECTION 5.13.080: EFFECT OF LICENSE ISSUANCE: The issuance of a short-term rental license shall not: A. Legalize the creation of any dwelling; B. Legalize any unlawful use or structure; or C. Establish any legal nonconforming use. SECTION 5.13.090: OPERATIONAL STANDARDS: A. Occupancy Limits: Maximum occupancy shall be in accordance with fire and building code requirements. B. Parking Requirements: Each short-term rental shall provide a minimum of one (1) off-street parking stall for the exclusive use of occupants of the short-term rental. Such parking space shall comply with all applicable zoning and design standards, including the location of the off street parking stall as required by 21A.44. 6 C. Minimum Stay Requirement: No short-term rental shall be rented, leased, or otherwise occupied for a period of less than two (2) consecutive nights by the same guest. D. Annual Rental Night Cap: No short-term rental shall be rented, leased, or otherwise occupied for more than two hundred (200) nights within any annual license period. E. Noise and Nuisance: The licensee shall ensure compliance with all applicable noise, waste, and nuisance regulations. F. License Number Identification: The licensee shall include the short-term rental business license number issued by the city in any advertisement, listing, or other promotion of the short- term rental including on any booking platform. Such license number shall be displayed in a conspicuous location within the advertisement. G. Posting Requirements: In a form provided by the city the licensee shall post within the short term rental and in a conspicuous location on or near the front door to the short term rental (1) the license number issued by the city for the short term rental, and (2) a telephone number that receives text messages and an email address of the local contact person. H. Recordkeeping: Licensees shall maintain records sufficient to demonstrate compliance with the requirements of this Chapter, including the number of nights the short-term rental is occupied each license period, and shall provide such records to the City upon request. I. Response by Local Contact Person: The local contact person shall be available and respond within two hours of being contacted by the city to remedy issues at a short term rental. J. Building Standards: The short term rental property shall be maintained in accordance with the self-certification standards published by the city. K. Taxes: All applicable transient room taxes shall be collected and remitted. L. Failure to comply with the provisions of this Section is grounds for enforcement pursuant to Section 5.13.100. SECTION 5.13.100: ENFORCEMENT: A. Except as set forth in Subsection A1, violations of this Chapter shall be subject to the penalties set forth in Chapter 5.88. 1. For a violation of Section 5.13.020, civil penalties of $1,000 shall accrue every seven (7) calendar days. B. The City may revoke or suspend a license for repeated violations. 7 C. Three-Strike Suspension – Nuisance Violations: If a short-term rental is the subject of three (3) verified violations of applicable noise, nuisance, parking, or other operational standards within any twelve (12) month period, the city may suspend the short-term rental business license for the remainder of the license period. For purposes of this section, a “verified violation” means a violation confirmed by the city through investigation, citation, or other enforcement action. Upon suspension, the short-term rental shall not be rented, advertised, or occupied for compensation during the suspension period. The city shall provide written notice of suspension to the license holder, including the basis for the suspension and the effective date. D. Escalation – Permanent Revocation: 1. If a short-term rental business license is suspended pursuant to Subsection C of this section for three (3) consecutive license periods, or portions thereof, the city may revoke the license. 2. Upon revocation: a. The dwelling at which the short term rental was conducted and the licensee shall be ineligible for a new short-term rental business license for a period of not less than three (3) years; and b. Any subsequent application shall be treated as a new application subject to all applicable requirements in effect at the time of application. E. Effect of Suspension or Revocation: 1. During any period of suspension or revocation, the short-term rental shall not be operated, advertised, or offered for occupancy. 2. Any operation in violation of this Subsection E shall constitute a separate violation for each day of noncompliance. F. Other Remedies Not Limited: The suspension and revocation provisions of this Section are in addition to, and not in lieu of, any other enforcement remedies available to the city under this title or other applicable law, including those set forth in general business licensing enforcement provision. SECTION 5.13.110: APPEAL: Any enforcement actions taken by the city pursuant to this Chapter may be appealed pursuant to Chapter 2.75. SECTION 2. Effective Date. That this ordinance shall take effect on July 1, 2026, pursuant to publication requirements outlined in Utah Code sections 10-3-711 and 10-3-713. Passed by the City Council of Salt Lake City, Utah, this ______ day of ______________, 2026. 8 ______________________________ Alejandro Puy, Council Chair  ATTEST: ______________________________ Keith Reynolds, City Recorder Transmitted to Mayor on _______________________. Mayor's Action: _______Approved. _______Vetoed. ______________________________ Erin Mendenhall, Mayor ______________________________ Keith Reynolds, City Recorder Bill No. ________ of 2026. Published: ______________. Short Term Rental Business License APPROVED AS TO FORM Salt Lake City Attorney’s Office Date: ___May 4, 2026__________________ By: _________________________________ Katherine D. Pasker, Senior City Attorney