Columbia Falls staff proposes citywide short‑term rental permit, $250 annual fee and data contract

City staff told the council they recommend a single, citywide short‑term rental (STR) permit and a stepped, data‑driven approach rather than an immediate, owner‑occupied‑only ban.

The manager said staff contracted with Deckard Technologies to gather and analyze listings across platforms; the initial data pull returned an unverified figure of about $3,400,000 in platform revenue citywide (staff noted this was an initial pool, not a final analysis). Staff recommended transitioning from the current $40 business license to a $250 annual STR permit fee to cover compliance tools and enforcement, with fee details to be discussed during the mid‑June budget and fee schedule process and any permit changes planned to take effect in January 2027.

Policy options and concerns: The planning commission’s proposed framework would have limited STRs to owner‑occupied units with grandfathering for existing non‑owner units; staff favored a single permitting approach that would apply across zoning. Public commenters and some council members urged stronger limits, citing housing impacts and rapid STR growth in recent years — one speaker said vacation listings increased from 12 in 2019 to 83 in 2024. Supporters of a measured approach said better data and enforcement are needed before making more restrictive zoning changes.

Council guidance and next steps: Council members generally supported staff moving forward with the recommended compliance and data approach and asked staff to return with zoning language and recommended permit fees. Staff said the permit fee conversation will be part of the mid‑June fee scheduling, with implementation (if adopted) slated for January 2027.