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Resolution 2025-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAVA HOT SPRINGS, IDAHO, IMPOSING A TEMPORARY MORATORIUM ON ACCEPTING OR PROCESSING BUSINESS LICENSE APPLICATIONS FOR BED AND BREAKFAST OR VACATION RENTAL/TOURIST HOMES, OR ISSUING ANY BUSINESS LICENSES THEREFORE, PROVIDING FOR RELATED MATTERS, AND PROVIDING AN EFFECTIVE DATE.
LAVA HOT SPRINGS CITY – VACATION
(SHORT TERM) RENTAL
June 30, 2025
What Happened In The Court Case?
Lava City was sued by some property owners who disagreed with the City’s short-term vacation rental
regulations, as outlined in City Ordinance 2006-5. Ordinance 2006-5 allowed short-term vacation rentals (e.g.
Airbnb type rentals) in commercial zones, subject to a few restrictions. Ordinance 2006-5 only allowed short-term
vacation rentals in the City’s residential neighborhoods if they were occupied by the property owner or
manager. In other words, a “Bed and Breakfast” type of establishment was allowed in residential
neighborhoods, but a short-term vacation rental without any on-site owner or property manager was not
allowed.
The property owners argued that Ordinance 2006-5 violated Idaho law, namely Idaho Code 67-6539,
which says a City cannot enforce any ordinance “that has the express or practical effect of prohibiting short-term
rentals or vacation rentals in the city.” The City vigorously defended the lawsuit, arguing that the City
code was not a prohibition, but instead was a “reasonable regulation” of short-term rentals, and necessary to
safeguard the public health, safety and general welfare in order to protect the integrity of residential
neighborhoods, which is allowed under Idaho law. (I.C. 67-6539).
The District Court agreed with the City. The property owners appealed to the Idaho Supreme Court,
which overturned the District Court’s ruling. According to the Idaho Supreme Court, Lava City’s code
violated Idaho law by completely banning, in residential zones, short-term rentals that are not owner-occupied.
The Supreme Court’s ruling invalidated City Ordinance 2006-5 in its entirety.
What Did the Idaho Supreme Court Say?
The Supreme Court struck down City Ordinance 2006-5. However, the Court’s ruling reaffirmed that a
City is allowed to impose “reasonable regulations” on short-term vacation rentals, so long as it doesn’t go too
far and impose regulations that have the express effect, or practical effect, of prohibiting them. In other words,
the Supreme Court decided that in this particular case, Ordinance 2006-5 went too far. But the City can still
have reasonable regulations on short-term vacation rentals. The Court’s opinion did not establish any rules or
guidelines about what would constitute a “reasonable regulation” that a City might impose, that would pass
muster under Idaho law.
What is the “Moratorium”?
The Supreme Court striking down Ordinance 2006-5 left the City in a tough spot, with a big gap to fill
in that part of the City code. Without being able to use the criteria outlined in Ordinance 2006-5, if somebody
applied for a business license for a short term vacation rental, what criteria would the City use to decide
whether it should grant or deny that license? Keep in mind, Ordinance 2006-5 regulated rentals in both the
commercial zones and residential zones. Only the residential zone part was challenged in Court --- but the
Idaho Supreme Court tossed out the entire ordinance.
Idaho law allows a city to place a moratorium, or temporary pause, upon issuing real estate related
permits if there is imminent peril to the public health, safety, or welfare. (I.C. 67-6523). On May 29, 2025, the
Lava City Council adopted a resolution placing a 182 day moratorium on accepting or processing any new
business license applications for Bed and Breakfast or Vacation Rental/Tourist home businesses within the
City. During this 182-day moratorium period, the City is working diligently to gather citizen input and craft a
new ordinance regarding short term vacation rentals within the City.
Short-Term Rental Ordinance Snapshot
A Comparative Snapshot of Local City Regulations
Local Option Tax increase for the City of Lava Hot Springs
Updated Local Option Tax form
WATER IMPROVEMENT PROJECT
The first phase of the project was completed in 2020. The second phase involves the drilling of a new well and additional improvements. Potential well sites are being explored and will involve the acquisition of land.
MAIN STREET OVER PORTNEUF RIVER BRIDGE.
The city has budgeted funds to install a pedestrian bridge on the south side of the existing traffic bridge over the Portneuf River on East Main Street. The bridge will look identical to the one on the North side but wider to encourage tubers to refrain from walking on the traffic bridge. The city is working on acquiring a small portion of property from an adjoining property owner for the bridge installation.
Authorized and Approved list of Businesses and Contractors licensed to do business in Lava Hot Springs City Limits is located on the tool bar under the more tab then the resource tab.
COUNTY-WIDE OPEN BURNING BAN EFFECTIVE JULY 1, 2025
Due to the current and expected weather and fuels conditions, Bannock County Commissioners have ordered a County-wide moratorium on all open burning in unincorporated areas of the County. Under authority of the Fire Chief, this ban is adopted and enforceable within the Lava Rural Fire District and the City of Lava Hot Springs.
There will be no burn permits issued.
Burning is prohibited.
Sky Lanterns, whether tethered or un-tethered, are prohibited pursuant to the Uniform Fire Code and State Law.
All fireworks and exploding targets are prohibited under this ban in the urban interface area, except for municipal fireworks displays.
Aerial fireworks (that is any firework that leaves the ground) are already prohibited pursuant to Idaho Code. Campfires or recreation fire are allowed in developed campgrounds and residential properties only. Such allowed recreational fires must comply with fire code limitations: Contained within a pit or ring, not to exceed 3’ diameter, 3’ flame height, and 25’ from structures or ignitable objects, and should be screened to eliminate airborne embers.
Under the ban, portable cooking equipment such as propane or charcoal fired stoves or grills are allowed, but caution must be exercised.
Federal and State restrictions may be imposed on all public or private-forested lands in the near future. Current prohibitions exist on public lands prohibiting use of fireworks, exploding targets, tracer or steel-core ammunition or other incendiary devices.
Violation of these restrictions may bring criminal or civil penalties, and subject violators to financial liability.
This moratorium will remain in effect until October 1, 2025
Unless rescinded, modified or extended by the Bannock County Board of Commissioners and/or local Fire Authority.
WARNING! EXTREME FIRE DANGER!
July, 2025
To all residents and guests of the Lava Hot Springs Fire District,
Bannock County is now under the guidelines of the annual burn ban. No further burn permits will be granted or extended until the ban is lifted.
It is worth noting that the County has already experienced some large-scale wild fires, as well as the fires in Bancroft that destroyed multiple structures. Everyone be aware that fire risk is very high this year, and great care should be exercised when enjoying recreational fires or holiday fireworks. Aireal fireworks are banned, but ground fireworks can also cause fires if not properly deployed in a safe area. Recreational fires should be limited in width and height so as to limit risk. Please dowse recreational fires when you are finished and ensure that they are completely out. Please refer to the accompanying Fire Ban Notice for restriction details.
There are also some preventative measures that everyone can take to limit exposure on their properties. Tall dry grasses and weeds are an extreme fire hazard and a ladder fuel that allow a fire to climb up from the ground to tree canopies or structures. During dry weather conditions, dry grasses and dry weeds should be kept trimmed to a height of 3” or less if it is within 100’ of a building or a combustible fence. This is not intended to apply to shrubbery or plants which are used as ground cover, provided such are landscape materials that are properly irrigated and maintained and do not provide a ready fuel supply to augment the spread or intensity of a fire.
Additional measures you can take include:
• Rake away leaves, dead limbs, and twigs. Remove leaves and rubbish from under structures and dispose of them properly. Clear all flammable vegetation. This will help reduce the fuel load.
• Have a professional tree service:
- Thin a 15-foot space between tree crowns, and remove limbs within 6 to 10 feet of the ground. This will help reduce the chance of fire spreading from tree to tree or from ground to tree.
-Trim tree and shrub limbs so they don't come in contact with electrical wires. Electrical wires can be easily damaged or knocked loose by swaying branches.
- Remove dead branches from all trees. Dead branches are easily combustible.
• Keep trees adjacent to buildings free of dead or dying wood and moss. Taller plants are more likely to spread fire.
• Remove vines from the walls of your home. Even live vines can spread fire quickly.
• Mow and water grass regularly. This will help reduce the fire load.
• Stack firewood uphill and away from your home.
• Regularly clean roof and gutters. Remove all dead limbs, needles, and debris that may spread fire.
Let’s all please work to together to avoid any more fires that have ravaged areas so very close to home. Our community has been fortunate thus far, as local fires have been contained. Please consider the safety or your friends, family and neighbors as we experience this period of high heat and dry conditions. Thank you for your efforts to keep this community safe.
Respectfully, The City of Lava Hot Springs