Panel Backs Banning Local Restrictions on Airbnb Rental

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(AP) — The Indiana Legislature could again consider prohibiting cities and towns from putting restrictions on short-term rental services like Airbnb.

A legislative study panel has recommended that lawmakers block local governments from adopting what it calls “any undue restrictions” on using someone’s primary residence as a short-term rental.

A bill for such a ban narrowly failed during this year’s legislative session and the issue could be debated when state lawmakers start a new session in January.

 Republican Sen. Mark Messmer of Jasper says his intention is to let municipalities keep existing ordinances reasonably limiting short-term rentals, particularly in Lake Michigan beach towns.

Sen. Tim Lanane of Anderson argues local governments should be allowed to prevent largely unregulated hotels from existing in residential neighborhoods.