St. Louis moves to collect voter-approved short-term rental fee after gaps left it unenforceable

A voter-approved revenue measure stalled without collection tools

St. Louis is moving to begin collecting a 3% nightly fee on short-term rentals after city leaders determined that earlier legislation left the city without a workable mechanism to receive and distribute the money. The fee was authorized by voters as Proposition S in the Nov. 5, 2024 election, aimed at generating dedicated funding for affordable housing programs and tenant-related services.

The measure applies to bookings on short-term rental platforms, commonly including Airbnb and Vrbo-style listings, and is structured similarly to lodging taxes that already apply to hotels. City officials have said the gap was not the voter authorization itself but the administrative and accounting framework needed to collect the fee and route proceeds to the intended funds.

What the Board of Aldermen changed

In February 2026, the Board of Aldermen advanced and approved legislation intended to operationalize Proposition S. The changes focus on setting up how the city’s license-collection and finance systems can receive the revenue and place it into the appropriate accounts.

• Creates or clarifies the city’s authority to collect the Proposition S fee on short-term rental transactions.
• Establishes the administrative “bones” needed to deposit revenue into the appropriate account(s) rather than leaving collections in legal or procedural limbo.
• Connects the fee’s proceeds to the purposes presented to voters in 2024, including affordable housing support and tenant services such as eviction-defense initiatives.

Revenue forecasts remain uncertain

City officials have acknowledged that they cannot yet provide a precise estimate of how much the fee will generate. A major reason is the limited visibility into the size of the local short-term rental market and the ongoing complexity surrounding the broader short-term rental regulatory framework. Without comprehensive enforcement and standardized reporting across listings, projecting total bookings and taxable nights is difficult.

Short-term rental regulation remains a separate, unresolved issue

The city’s efforts to collect Proposition S revenue are unfolding alongside continued legal and administrative challenges to St. Louis’ short-term rental permitting rules. In 2023, the city adopted regulations to create a permitting process and operational standards for short-term rentals, including requirements intended to address neighborhood concerns and public safety. That regulatory system has faced delays tied to litigation over aspects of the permitting structure.

The fee collection measure and the broader short-term rental regulatory regime are related in policy goals but distinct in legal structure and implementation timelines.

What happens next

With the collection framework approved, the city can begin building the operational steps required to assess, collect and distribute the fee proceeds. Implementation will depend on administrative setup, coordination with booking platforms and enforcement capacity, while parallel court and policy developments continue to shape the broader short-term rental landscape in St. Louis.