Short-Term Rental Rules in Teton County, Idaho

Driggs: a permit, an inspection, and a Land Development Code now being rewritten for state compliance

Driggs requires a Short Term Rental Permit issued by the City Clerk's office, historically governed by Ordinance 450-22 and carrying an $80 initial application fee plus a $50 annual renewal. Before a permit issues, the Fire Marshal and the City of Driggs Building Inspector may inspect the property, and an operator must designate a local representative reachable within 30 minutes of the property. Rental income is subject to state sales tax, the state lodging tax, and Driggs' own 8% local lodging tax, all of which must be collected and remitted -- not just the state-level taxes a listing platform might already handle.

That framework is actively being rewritten. Driggs' Planning & Zoning Commission held a public hearing on June 10, 2026 to consider text amendments to the city's Land Development Code specifically to align Driggs zoning with the state-mandated definitions and restrictions in HB 583. Some third-party vacation-rental sites reference a newer ordinance number superseding 450-22, but this page's research could not independently confirm a specific new ordinance number or its adopted text from a Driggs city source -- confirm the current governing ordinance, fee amount, and inspection requirement directly with the Driggs City Clerk before relying on the pre-2026 figures above.

Victor: a business license, not a rental-specific permit, with its own fee schedule

Victor takes a different administrative route than Driggs: short-term rental operators apply for a City of Victor Business License rather than a rental-specific permit, under City Code Title 3, Chapter 1 (Ordinance O540). The license costs $100 for the first year and $50 per year after that -- a different fee structure than Driggs' $80/$50 permit, so don't assume the two towns' costs are interchangeable. Victor also collects its own 8% room occupancy tax on stays of 30 days or less, reported monthly with payment due by the 20th of the following month. If a listing is booked through a third-party platform such as Airbnb or VRBO, the operator must provide the city documentation confirming the platform is collecting and remitting the tax on their behalf -- Victor does not assume that automatically, and the city has pursued enforcement against operators found out of compliance with lodging-tax remittance.

What HB 583 likely changed, and what it probably did not

Idaho's HB 583, effective statewide July 1, 2026, bars cities and counties from requiring an STR-specific license, permit, certification, fee, or registration, and from imposing many STR-only operating restrictions (owner-presence requirements, mandatory professional property management, extra insurance mandates). Based on statewide reporting on how the law has played out in other Idaho resort towns, two categories of local rule appear likely to survive: basic life-safety standards already required under the building code (smoke alarms, carbon monoxide detectors, fire extinguishers, egress, occupancy limits), and lodging/occupancy taxes, which are a taxation matter rather than a land-use licensing requirement. What almost certainly does not survive is the permit-fee-and-mandatory-inspection structure Driggs and Victor built their systems around -- which is consistent with Driggs' own June 2026 move to amend its code.

Because this page was researched only weeks after HB 583 took effect and while Driggs was actively rewriting its ordinance, do not assume either city's pre-2026 fee, inspection, or permit requirement is still being enforced as described. Confirm current requirements -- including whether a permit fee is still being collected at all -- directly with the Driggs City Clerk or Victor City Clerk before budgeting around a short-term rental income projection for a specific property.