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New Short Term Rental ordinance
City of Lava Hot Springs ordinance 2025–08
An ordinance of the City of Lava Hot Spring in municipal corporation by adopting a new title 3 chapter 5 "Short term rental ordinance" setting forth the purpose and intent, definitions, and licensing requirements, inspection criteria, operational and health – safety standards, local contact requirements, licensing caps, and density control, zoning restrictions, enforcement, and penalties, and appeals process.
Be it ordained by the Mayor and Council of the City of Lava Hot Spring
LAVA HOT SPRINGS CITY – VACATION
(SHORT TERM) RENTAL
June 30, 2025
What Happened In The Court Case?
Lava City was sued by some property owners who disagreed with the City’s short-term vacation rental
regulations, as outlined in City Ordinance 2006-5. Ordinance 2006-5 allowed short-term vacation rentals (e.g.
Airbnb type rentals) in commercial zones, subject to a few restrictions. Ordinance 2006-5 only allowed short-term
vacation rentals in the City’s residential neighborhoods if they were occupied by the property owner or
manager. In other words, a “Bed and Breakfast” type of establishment was allowed in residential
neighborhoods, but a short-term vacation rental without any on-site owner or property manager was not
allowed.
The property owners argued that Ordinance 2006-5 violated Idaho law, namely Idaho Code 67-6539,
which says a City cannot enforce any ordinance “that has the express or practical effect of prohibiting short-term
rentals or vacation rentals in the city.” The City vigorously defended the lawsuit, arguing that the City
code was not a prohibition, but instead was a “reasonable regulation” of short-term rentals, and necessary to
safeguard the public health, safety and general welfare in order to protect the integrity of residential
neighborhoods, which is allowed under Idaho law. (I.C. 67-6539).
The District Court agreed with the City. The property owners appealed to the Idaho Supreme Court,
which overturned the District Court’s ruling. According to the Idaho Supreme Court, Lava City’s code
violated Idaho law by completely banning, in residential zones, short-term rentals that are not owner-occupied.
The Supreme Court’s ruling invalidated City Ordinance 2006-5 in its entirety.
What Did the Idaho Supreme Court Say?
The Supreme Court struck down City Ordinance 2006-5. However, the Court’s ruling reaffirmed that a
City is allowed to impose “reasonable regulations” on short-term vacation rentals, so long as it doesn’t go too
far and impose regulations that have the express effect, or practical effect, of prohibiting them. In other words,
the Supreme Court decided that in this particular case, Ordinance 2006-5 went too far. But the City can still
have reasonable regulations on short-term vacation rentals. The Court’s opinion did not establish any rules or
guidelines about what would constitute a “reasonable regulation” that a City might impose, that would pass
muster under Idaho law.
What is the “Moratorium”?
The Supreme Court striking down Ordinance 2006-5 left the City in a tough spot, with a big gap to fill
in that part of the City code. Without being able to use the criteria outlined in Ordinance 2006-5, if somebody
applied for a business license for a short term vacation rental, what criteria would the City use to decide
whether it should grant or deny that license? Keep in mind, Ordinance 2006-5 regulated rentals in both the
commercial zones and residential zones. Only the residential zone part was challenged in Court --- but the
Idaho Supreme Court tossed out the entire ordinance.
Idaho law allows a city to place a moratorium, or temporary pause, upon issuing real estate related
permits if there is imminent peril to the public health, safety, or welfare. (I.C. 67-6523). On May 29, 2025, the
Lava City Council adopted a resolution placing a 182 day moratorium on accepting or processing any new
business license applications for Bed and Breakfast or Vacation Rental/Tourist home businesses within the
City. During this 182-day moratorium period, the City is working diligently to gather citizen input and craft a
new ordinance regarding short term vacation rentals within the City.
Local Option Tax increase for the City of Lava Hot Springs
Updated Local Option Tax form
WATER IMPROVEMENT PROJECT
The first phase of the project was completed in 2020. The second phase involves the drilling of a new well and additional improvements. Potential well sites are being explored and will involve the acquisition of land.
MAIN STREET OVER PORTNEUF RIVER BRIDGE.
The city has budgeted funds to install a pedestrian bridge on the south side of the existing traffic bridge over the Portneuf River on East Main Street. The bridge will look identical to the one on the North side but wider to encourage tubers to refrain from walking on the traffic bridge. The city is working on acquiring a small portion of property from an adjoining property owner for the bridge installation.
Authorized and Approved list of Businesses and Contractors licensed to do business in Lava Hot Springs City Limits is located on the tool bar under the more tab then the resource tab.
Final Notice and Public Explanation
of a Proposed Activity in a Wetland
This is to give notice that the City of Lava Hot Springs has
conducted an evaluation as required by [Executive Order
11990 Wetlands], in accordance with HUD regulations at 24
CFR 55.20 Subpart C Procedures for Making Determinations
on Floodplain Management, to determine the potential effect
that its activity in the wetland will have on the human environment. The Lava Hot Springs Drinking Water Well Development
Published: January 20th, 2026 (ISJ26299-708614)
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Final Notice and Public Explanation of a Proposed Activity in a Floodplain
This is to give notice that the City of Lava Hot Springs has conducted an evaluation as required by [Executive Order 11988 Floodplain], in accordance with HUD regulations at 24 CFR 55.20 Subpart C Procedures for Making Determinations on Floodplain Management, to determine the potential effect that its activity in the floodplain will have on the human environment. The Lava Hot Springs Drinking Water Well Development Project is funded in part by an Idaho Community Development Block Grant. The project scope of work includes the develop ment of a drinking water well and the installation of 4,300 Lin ear Feet of transmission lines to connect the well to the system and will encompass 0.25 acres of floodplain. The proposed project is located within Bannock County, Idaho.
Published: January 20th, 2026 (ISJ26299-708615)
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NOTICE OF PUBLIC HEARING
CITY OF LAVA HOT SPRINGS, IDAHO
NOTICE IS HEREBY GIVEN that the Lava Hot Springs City Council will conduct a public hearing on the 12th day of February 2026. The Council meeting will begin at 6:00 PM at the Lava City Hall meeting room located at 115 W. Elm Street, Lava Hot Springs, Idaho. At that time and place the Council will hold multiple public hearings at the times designated on the Council agenda which will be posted prior to the meeting. The public hearings will be for the purpose of
Published: January 23rd, 2026 (ISJ903-708874
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NOTICE OF PUBLIC HEARING
CITY OF LAVA HOT SPRINGS, IDAHO
NOTICE IS HEREBY GIVEN that the Lava Hot Springs City Council will conduct a public hearing on the 12th day of February 2026. The Council meeting will begin at 6:00 PM at the Lava City Hall meeting room located at 115 W. Elm Street, Lava Hot Springs, Idaho. At that time and place the Council will hold multiple public hearings at the times designated on the Council agenda which will be posted prior to the meeting. The public hearings will be for the purpose of
Published: January 23rd, 2026 (ISJ903-708876
Click here to view full publication