A bill for an act relating to short-term rental property classification by cities.

Iowa House File 2320 (HF2320) is a bill introduced on February 6, 2026, by Representative Aime Wichtendahl. The bill allows cities in Iowa to require short-term rental properties to register with the city and to impose penalties for non-registration. Additionally, it permits cities to classify short-term rental properties as lodging, enabling them to collect hotel and motel taxes from these properties.

Supporters of HF2320 argue that the bill provides cities with necessary tools to regulate the growing short-term rental market. By allowing cities to require registration and impose penalties for non-compliance, the bill aims to ensure that short-term rentals adhere to local standards and contribute fairly to municipal revenues through hotel and motel taxes. This could lead to increased funding for local services and a more level playing field between traditional lodging establishments and short-term rentals.

Critics of HF2320 contend that the bill could impose additional burdens on property owners who offer short-term rentals, potentially discouraging participation in the market. They argue that the registration requirements and associated penalties may be seen as overregulation, stifling economic opportunities for homeowners. Additionally, opponents express concern that classifying short-term rentals as lodging for tax purposes could lead to increased costs for consumers and reduce the affordability of short-term rental options.