Overview: Are Short-Term Rentals Allowed in Pocatello, ID?

Yes, short-term rentals are explicitly allowed in Pocatello, Idaho. Pocatello does not currently have specific laws regulating short-term rentals, but under Idaho state law, neither cities nor counties can prohibit short-term rentals or vacation rentals. This provides a favorable environment for STR investors while maintaining flexibility for reasonable local regulations focused on public health, safety, and neighborhood protection.

How to Start a Short-Term Rental Business in Pocatello

Step-by-Step Process:

1. Property Assessment and Compliance

   • Verify your property meets minimum county and city housing standards
   • Ensure compliance with all zoning requirements applicable to residential properties
   • Review any homeowner association or apartment complex rules (noting Idaho HOA limitations)

2. Registration and Permits

   • Register as a retailer with the Idaho State Tax Commission
   • Obtain any necessary business permits from local authorities
   • If using a short-term rental marketplace, they will handle tax collection

3. Property Setup and Marketing

   • Furnish and prepare the property for guests
   • Set up listings on platforms like Airbnb, VRBO, or other short-term rental marketplaces
   • Implement booking and guest management systems

4. Tax Setup

   • For direct rentals: Register to collect and remit state sales tax, Travel and Convention tax, and auditorium district taxes
   • For marketplace rentals: The platform handles tax collection and remittance

Required Documents, Permits, Licenses, and Guidelines

Essential Documentation:

• Business Registration: Register with Idaho State Tax Commission (TAP account)
• Sales Tax Permit: Required for direct rentals (marketplaces handle this automatically)
• Property Compliance: Meeting all applicable housing codes and safety regulations

Important Forms:

• Form ST-104HM: Sales Tax Exemption on Lodging Accommodations (for qualifying government/organization rentals)
• Form ST-101: Sales Tax Resale or Exemption Certificate (for purchasing exempt supplies)
• Form 850: Idaho Sales Tax Return (for reporting sales taxes)
• Form 1152: Travel and Convention Tax Return
• Form 4250: Pocatello-Chubbuck Auditorium District Tax Return

Safety and Compliance Requirements:

• Property must meet standard housing safety codes
• Maintain cleanliness and maintenance standards
• Comply with local noise and nuisance ordinances
• Ensure proper insurance coverage for short-term rental operations

Specific Regulations for Short-Term Rentals

State-Level Regulations (Idaho State Code):

Idaho State Law 67-6539:

• Counties and cities cannot prohibit short-term rentals or vacation rentals
• Municipalities can implement reasonable regulations to safeguard public health, safety, and general welfare
• Short-term rentals must be classified as residential land use for zoning purposes
• Cities cannot regulate the operation of short-term rental marketplaces

Idaho State Law 55-3211 (HOA Limitations):

• Homeowners associations cannot limit or prohibit short-term rentals for any amount of time
• New restrictions require explicit written agreement from affected property owners at the time of amendment
• Existing transfer-related restrictions remain valid if they applied when the owner acquired the property

Idaho State Law 63-3612 (Sales Tax):

• Sales tax applies to lodging rentals of 30 days or less
• Short-term rental marketplaces are responsible for tax collection when handling all arrangements
• Individual property owners must collect and remit taxes for direct rentals

Municipal and County Regulations:

Current Pocatello Status:

• No specific short-term rental ordinances currently in effect
• Standard housing and rental regulations apply
• Standard noise, nuisance, and zoning ordinances remain enforceable
• Properties must meet general housing safety and maintenance standards

Tax Obligations:

State Taxes Required:

• Sales Tax: 6% on all lodging rentals 30 days or less
• Travel and Convention Tax: Additional tax on sleeping room rentals
• Local Taxes: Any applicable city sales taxes

Pocatello-Chubbuck Auditorium District Tax:

• Additional tax on both sleeping and nonsleeping rooms within district boundaries
• Currently administered by Idaho State Tax Commission using Form 4250

Contact Information for Local Authority

Idaho State Tax Commission (Primary Authority for STR Tax Collection)

• Website: tax.idaho.gov
• Phone: (208) 334-7660
• Mailing Address:
  • Idaho State Tax Commission
  • P.O. Box 36
  • Boise, ID 83722-0410
• TAP Account Registration: idahotap.gentax.com/TAP/

Local Government Contacts:

City of Pocatello:

• Website: pocatello.us
• Phone: (208) 234-6103
• Address: 911 N 7th Ave, Pocatello, ID 83201

Pocatello Building Department:

• Phone: (208) 234-6234
• Address: 911 N 7th Ave, Pocatello, ID 83201

Pocatello Finance Department:

• Phone: (208) 234-6119

Professional Management Services:

High Mountain Property Management:

• Phone: (208) 671-0708
• Email: company@highmtnpm.com
• Address: PO Box 50024, Idaho Falls, ID 83405-0024
• Website: highmtnpm.com

Links to Source Pages

Primary Sources:

• GoSummer Vacation Rental Guide: https://www.gosummer.com/vacation-rental-management/pocatello-idaho
• High Mountain Property Management Idaho STR Laws: https://www.highmtnpm.com/post/new-idaho-law-allows-anybody-to-short-term-rent-their-property
• Idaho State Tax Commission Lodging Guide: https://tax.idaho.gov/search-category/sales-tax/lodging/

Idaho Legal Statutes:

• Idaho State Code 67-6539: https://legislature.idaho.gov/statutesrules/idstat/title67/t67ch65/sect67-6539/
• Idaho State Code 55-3211: https://legislature.idaho.gov/statutesrules/idstat/Title55/T55CH32/SECT55-3211/

Tax Forms and Resources:

• Idaho Sales Tax Forms: https://tax.idaho.gov/forms-guides/forms/
• ST-104HM Form: https://tax.idaho.gov/document-mngr/forms_EFO00164/
• ST-101 Form: https://tax.idaho.gov/document-mngr/forms_EFO00149/

Important Considerations for Investors

Market Dynamics:

• Pocatello's market benefits from Idaho State University, outdoor recreation, and proximity to ski resorts
• Strong seasonality with peak demand during summer (June-August) and winter (December-February)
• Opportunities exist in both downtown apartments and secluded cabins

Compliance Best Practices:

• Maintain detailed records of all transactions and tax collections for minimum 4 years
• Consider professional property management services to handle compliance and operations
• Regularly monitor for any new municipal regulations that may be introduced
• Ensure adequate insurance coverage for short-term rental operations
• Establish clear house rules and screening processes to maintain neighborhood relations

Tax Collection and Remittance:

• For direct bookings: Register and collect all applicable taxes
• For marketplace bookings: Verify that the marketplace is properly collecting and remitting taxes
• File monthly or quarterly tax returns as required by the Idaho State Tax Commission
• Keep exemption certificates for qualifying sales to government or qualifying organizations

This comprehensive guide provides the framework for establishing and operating a compliant short-term rental business in Pocatello, Idaho, leveraging the state's pro-STR legal environment while maintaining full compliance with all applicable tax and regulatory requirements.