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Indiana Measure Prohibits Anti-Airbnb Laws

A bill headed to the desk of Indiana Gov. Eric Holcomb would prohibit Hoosier state cities and towns from banning Airbnb.


The measure prohibiting local governments from banning Airbnb and other short-term rentals passed the Indiana House on Tuesday.

If Holcomb approves it, Indiana would become the fourth state to prohibit local governments from banning short-term rentals like Airbnb. Florida, Idaho and Arizona have also passed legislation aiming to keep locals from banning the business. Other states, including Michigan, Georgia and Tennessee, are currently considering similar measures, according to the Travel Technology Association.

“The overwhelming support for this legislation reflects our state’s support for economic growth, entrepreneurship and tourism,” Sen. Mark Messmer of Jasper, one of the sponsors, told the Indianapolis Star.  “The thousands of Hoosiers already renting and sharing their homes should feel protected under the law and empowered to keep bringing in new revenue to Indiana.”

The city of Carmel, an affluent suburb just north of Indianapolis, may have to change its laws. Officials there have notified short-term rental operators that they are violating local zoning laws.

Airbnb, obviously, was pleased.


“Indianapolis is Airbnb’s top trending U.S. city, and we’ve also seen home sharing boost tourism to cities like South Bend, Bloomington, Fort Wayne and Evansville,” the company’s Midwest Policy Director, Laura Spanjian, said in a statement. “We believe this law will serve as a model for other states looking to take full economic advantage of the sharing economy.”

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