Arkansas House rejects bill limiting local authority over short‑term rentals

House Bill 17‑90, a statewide framework for short‑term rentals that would have barred municipalities from banning or capping short‑term rental units, failed on a 33‑49‑6 vote in the Arkansas House on the floor session day.

The bill, introduced by Representative McKenzie, sought to classify short‑term rentals as residential for zoning purposes, allow municipalities to require permits and collect fees, and prevent local governments from imposing outright bans or numeric caps. McKenzie described the measure as a “balance” between property rights and local regulation, saying it grew from “three years of work” and stakeholder compromise.

Supporters argued the bill protected property owners’ rights and provided a consistent statewide approach for an emerging sharing economy. Representative McKenzie said the measure would permit municipalities to require owner contact information and safety notices, revoke permits for repeat or serious violations, and respect private agreements such as homeowners association rules.

Opponents contended the bill undid local control and could remove tools — such as special‑use permitting — that communities use to vet impacts and hear neighbors’ concerns. Representative Torres asked whether the bill would eliminate municipal special‑use permit hearings; McKenzie replied it would not force the removal of special‑use permits but said municipalities might prefer a permanent license structure.

After debate, the House voted: 33 ayes, 49 nays and 6 present; the bill failed.

The outcome preserves local governing bodies’ existing authority to regulate short‑term rentals under their zoning and permitting frameworks.