Polson, MT Now Requires STR Permits: What Airbnb Hosts Must Do

Polson, Montana just closed the regulatory gap on short-term rentals. The Polson City Commission approved the second reading of a new STR permit ordinance on October 1, giving the city formal jurisdiction over vacation rentals like Airbnbs for the first time. If you rent out a home in Polson, you now need a city permit, and the clock is already running.

What Just Happened

The ordinance passed after a contested vote at the October 1 City Commission meeting. Two commissioners, Jen Ruggless and Carolyn Pardini, pushed to table the item, arguing the commission had not received enough public comment. Commissioner Lisa Rehard moved to approve it anyway, with a second from Lori Schrader-Young. A motion to table failed, and the motion to approve the second reading carried.

Community Development Director Rob Edington presented the ordinance and described it as a "simple annual verification" permit focused on public health, life safety, emergency contact information and tracking. Commissioner Rehard framed the stakes plainly: the city currently lacks jurisdiction over these rentals, and approving this will allow them to ensure people coming to the city are safe.

The Number That Matters: $30

The annual permit fee is set at $30. That figure is already drawing criticism from inside the commission itself. Commissioner Pardini said the fee does not cover the staff time required to complete the permit paperwork, and pointed to the City of Columbia Falls as a benchmark for a higher fee. Both Edington and Mayor Laura Dever acknowledged that changes, including a fee increase, could come once the permit system is established. In other words, $30 is the floor, not necessarily the ceiling. Hosts who lock in compliance now will be ahead of any future increases.

What This Means for Hosts Operating Today

Until now, Polson STR operators dealt with county and state requirements but faced no city-level permit obligation. That changes with this ordinance. One local host, Polson resident Lisa Linnenkohl, who already rents her home as a short-term rental, spoke during public comment and said she "strongly" supports the ordinance. She noted she already complies with county and state requirements and believes it is reasonable for the city to have a permit as well.

Beyond the new city permit, hosts should be aware of the broader compliance picture. Polson operators are subject to an 8% accommodation tax rate. While Airbnb and VRBO both collect lodging tax on behalf of hosts on their platforms, a separate manual tax submission is still required, meaning hosts cannot assume platform collection covers everything.

What Hosts Should Do Now

• Obtain the new city STR permit. The annual fee is currently $30.
• Confirm your emergency contact information is current and ready to submit, as that is a core focus of the permit verification process.
• Do not assume platform tax collection is sufficient. Manual tax submission is still required in Polson despite Airbnb and VRBO collecting lodging taxes on your behalf.
• Watch for fee changes. City officials have signaled the $30 rate may rise as the program matures.

What Comes Next

The ordinance is now approved, but city officials have left the door open for amendments. Edington and Mayor Dever both discussed bringing more details to the permit resolution once the system is established, with a fee increase among the likely revisions. Hosts who wait to comply risk being caught off guard by a tightened framework with a higher price tag attached.

For the complete Polson compliance guide including tax calculator, checklist, and daily monitoring, see Polson, MT STR Regulations.