North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S291 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 291
	3	+	S D
	4	+	SENATE BILL DRS45159-LM-11
	5	+
5	6
6	7
7	8		Short Title: Regulation of Short-Term Rentals. (Public)
8	9		Sponsors: Senators Moffitt, McInnis, and Hanig (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 17, 2025~~
11		-	~~S291 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45159 -LM-11
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO LIMIT THE REGULATION OF SHORT -TERM RENTALS BY CITIES TO 2
14	15		PROTECT PRIVATE PROPERTY RIGHTS AND TO ESTABLISH GUIDELINES FOR 3
15	16		REGULATING SHORT-TERM RENTALS. 4
16	17		Whereas, Section 1 of Article I of the North Carolina Constitution provides that "all 5
17	18		persons are created equal; that they are endowed by their Creator with certain inalienable rights; 6
18	19		that among these are life, liberty, the enjoyment of the fruits of their own labor, and the pursuit 7
19	20		of happiness."; and 8
20	21		Whereas, Section 19 of Article I of the North Carolina Constitution provides that 9
21	22		"[n]o person shall be taken, imprisoned, or disseized of his freehold, liberties, or privileges, or 10
22	23		outlawed, or exiled, or in any manner deprived of his life, liberty, or property, but by the law of 11
23	24		the land."; and 12
24	25		Whereas, Section 1 of Article VII of the North Carolina Constitution provides that 13
25	26		the General Assembly "shall provide for the organization and government and the fixing of 14
26	27		boundaries of counties, cities and towns, and other governmental subdivisions, and, except as 15
27	28		otherwise prohibited by this Constitution, may give such powers and duties to counties, cities 16
28	29		and towns, and other governmental subdivisions as it may deem advisable."; and 17
29	30		Whereas, North Carolina has 532 cities; and 18
30	31		Whereas, short-term rentals are vital to the tourism and marketability of the State; and 19
31	32		Whereas, short-term rentals provide housing options for transitory workers, including 20
32	33		nurses, tradespeople, and executives; and 21
33	34		Whereas, cities often frustrate tourism and infringe on property owners' private 22
34	35		property rights by adopting ordinances that inhibit property owners' right to use their property as 23
35	36		they see fit; and 24
36	37		Whereas, it is in the best interest of the State to establish uniform guidelines for 25
37	38		short-term rentals; Now, therefore, 26
38	39		The General Assembly of North Carolina enacts: 27
39	40		SECTION 1. Article 21 of Chapter 160A of the General Statutes is amended by 28
40	41		adding a new section to read: 29
41	42		"§ 160A-499.11. Regulation of short-term rentals. 30
42	43		(a) No city may adopt or enforce an ordinance, rule, or regulation that does any of the 31
43	44		following: 32
44	45		(1) Prohibits the use of residential property as a short-term rental. 33
45	46		(2) Prohibits the use of accessory dwelling units as short-term rentals. 34
46		-	(3) Limits the number of nights a property can be rented as a short-term rental. 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 291-First Edition
	47	+	(3) Limits the number of nights a property can be rented as a short-term rental. 35
	48	+	FILED SENATE
	49	+	Mar 13, 2025
	50	+	S.B. 291
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS45159-LM-11
48	53		(4) Requires the owner of the short-term rental to occupy the property for any 1
49	54		period of time during a rental to an occupant. 2
50	55		(5) Classifies short-term rentals as a commercial use. 3
51	56		(6) Limits the operation of a short-term rental marketplace. 4
52	57		(b) A city may adopt an ordinance, rule, or regulation that regulates short-term rentals 5
53	58		by: 6
54	59		(1) Requiring a lodging operator to obtain a permit to operate a short-term rental 7
55	60		within the city's corporate limits. The city may revoke the permit if the 8
56	61		short-term rental incurs five health and safety violations within a 12-month 9
57	62		rolling period; provided, however, the city shall, prior to revoking the permit, 10
58	63		give the lodging operator an opportunity to contest the alleged violations and, 11
59	64		if found to exist, an opportunity to remedy the violations. The city may charge 12
60	65		a one-time fee of not more than twenty-five dollars ($25.00) for each permit 13
61	66		issued and may charge an additional fee of not more than twenty-five dollars 14
62	67		($25.00) to reinstate a permit that has expired or been revoked. 15
63	68		(2) As part of the permitting process authorized under subdivision (1) of this 16
64	69		subsection, limiting the number of occupants allowed to stay in a short-term 17
65	70		rental to two adults per bedroom. 18
66	71		(3) As part of the permitting process authorized under subdivision (1) of this 19
67	72		subsection, requiring the lodging operator, or his or her authorized agent, to 20
68	73		provide a parking plan indicating designated parking to accommodate one 21
69	74		space per bedroom. The violation of a parking restriction is not a health and 22
70	75		safety violation under subdivision (1) of this subsection. 23
71	76		(4) Restricting the location of short-term rentals to areas of the city that have been 24
72	77		zoned for residential use, and requiring that the property remains in 25
73	78		compliance with all applicable residential zoning requirements. 26
74	79		(5) Requiring that short-term rentals comply with all applicable city ordinances 27
75	80		and codes, including building codes and housing codes. 28
76	81		(6) Requiring that all contracts for short-term rentals include a copy of any city 29
77	82		ordinances that regulate noise, waste removal, and parking or, in the 30
78	83		alternative, that the lodging operator conspicuously post in the rental a written 31
79	84		summary of city ordinances that regulate noise, waste removal, and parking. 32
80	85		(7) Prohibiting the use of short-term rentals for any purpose other than that which 33
81	86		is allowed in hotels, motels, and inns without the property owner's prior 34
82	87		approval, which shall be evidenced by a written agreement between the 35
83	88		lodging operator and the occupant. 36
84	89		(8) Requiring a lodging operator or authorized agent of a lodging operator be 37
85	90		within a 50-mile radius of a short-term rental during the time that an occupant 38
86	91		is staying in a short-term rental. 39
87	92		(c) Unless the context indicates otherwise, the following definitions shall apply in this 40
88	93		section: 41
89	94		(1) Lodging operator. – A person who rents a short-term rental to an occupant 42
90	95		using a short-term rental marketplace. 43
91	96		(2) Short-term rental. – All of the following that are offered to the public for a fee 44
92	97		and for a period of 90 days or less: (i) an individually or collectively owned 45
93	98		single-family house or dwelling unit, (ii) a unit in a condominium, timeshare, 46
94	99		townhome, or accessory dwelling unit, and (iii) an owner-occupied residential 47
95	100		home. The term does not include any of the following: 48
96	101		a. A collective group of units in a complex of condominiums owned by 49
97	102		a single owner, corporation, or related owner that is non-owner 50
98	103		occupied and is used in a similar manner as a hotel, motel, or an 51 General Assembly Of North Carolina Session 2025
99		-	~~Senate Bill 291-First Edition~~ Page 3
	104	+	DRS45159-LM-11 Page 3
100	105		extended stay inn if the complex of condominiums is not required to 1
101	106		adhere to the same building standards and regulations as hotels, 2
102	107		motels, and extended stay inns. 3
103	108		b. A unit that is used for a retail business or as a restaurant, banquet space, 4
104	109		event center, or a similar purpose. 5
105	110		(3) Short-term rental marketplace. – A platform through which a lodging 6
106	111		operator, or the lodging operator's authorized agent, offers a short-term rental 7
107	112		to an occupant." 8
108	113		SECTION 2. This act is effective when it becomes law. 9