The Montana Legislature has introduced Senate Bill 336, a significant piece of legislation aimed at regulating short-term rentals across the state. Introduced on March 1, 2025, the bill seeks to clarify the status of short-term rentals, defining them as a residential use of property rather than a commercial activity. This distinction is crucial as it limits the ability of local jurisdictions to impose blanket bans on such rentals.

Key provisions of Senate Bill 336 include stipulations that short-term rentals are permissible in any area designated for residential use, which encompasses single-family homes, multifamily units, and other residential structures. The bill explicitly states that local governments cannot prohibit short-term rentals of a property owner's primary residence or a separate residence on the same parcel, thereby protecting homeowners' rights to rent out their properties.

One of the notable aspects of the bill is its provision for existing short-term rentals. If a jurisdiction enacts restrictions after a rental has been established, that rental will be considered a legal nonconforming use, allowing it to continue operating despite new regulations.

The introduction of Senate Bill 336 has sparked debates among lawmakers and community members. Proponents argue that the bill supports property rights and encourages tourism, which can be economically beneficial for local communities. Critics, however, express concerns that the bill may undermine local control and exacerbate housing shortages in areas where short-term rentals could reduce the availability of long-term housing options.

The implications of this legislation are significant. If passed, it could reshape the landscape of short-term rentals in Montana, potentially leading to increased tourism revenue but also raising questions about housing affordability and community character. As discussions continue, stakeholders from various sectors, including real estate, tourism, and local governance, are closely monitoring the bill's progress and its potential impact on Montana's housing market and economy.

As the legislative session unfolds, the future of Senate Bill 336 remains uncertain, with further debates and amendments likely as lawmakers seek to balance the interests of property owners, local governments, and residents.