Senate committee hears bill to classify short‑term rentals as residential use

Senator Greg Hertz, who represents Senate District 7 from Polson, opened a hearing before the Senate Local Government Committee to introduce Senate Bill 336, legislation that would define short‑term rentals (STRs) as a residential use and limit how local governments and homeowners associations may prohibit them.

The bill, Hertz said, would make short‑term rentals “residential property and is not commercial or business,” and would require any jurisdiction or covenant that proposes a blanket ban on STRs to show specific public‑safety or infrastructure reasons in a formal analysis. The proposal also contains a grandfathering clause to protect STRs already in operation on the bill’s effective date and an exception allowing a property owner to rent out all or part of their primary residence or an adjoining property.

The measure drew extensive proponent testimony from homeowners, rental operators and industry representatives who said the bill would protect long‑standing property uses, preserve retirement income for older Montanans, and maintain lodging capacity in rural tourism communities. Stephanie Baucus, an attorney from Billings, told the committee that state licensing records show “nearly 5,000 owners that have tourist home licenses” and that more than 60% are Montana residents. Daniel Cox, representing the Montana Association of Realtors, said the bill would resolve uncertainty left by recent court…