What makes them automatically illegal across the board? Aren't short or long term rentals, and what's taxible, regulated by the various states? Not that I really care about those folks taking away my business. The $45/night folks aren't taking anything away from me. A couple of weeks ago, we had a $675 tip for one 8-hour day. So, clearly, I'm not inquiring out of concern that I'm going to lose anything to the $45/night folks. You can't even get me to walk down the dock and open the gate for $45.
But, different kinds of accommodations may be subject to different regulations.
Me, for example, I'm not required to collect occupancy tax; we are not subject to inspections other than the occasional boardy by the Coast Guard which has yet to happen; we don't need any special licensing other than an ordinary business license, etc., but that doesn't make us illegal. Heck, we're not even subject to property tax of any kind! I do collect sales tax; I do have commercial insurance (that's where we pay through the nose at five figures annually!); and I do have a commercial state watercraft registration. Yeah, I get it why WE are different, but the same - because we float instead of resting on footers and foundations, we're viewed as a charteryacht rather than lodging, although it's all the same thing - you sleep here, eat here, and pay a daily fee for that. You can even drink here without a liquor license.
Unless or until "BnB" or B&B" is copyrighted, trademarked, or otherwise, there will be little anyone can do to stop anyone from using those terms. Afterall, they could mean something different like Boat & Breakfast, or for those topless events ****s & Breakfast (yeah, it happens! Not here, but it happens. LOL There is a niche market for that - just google "boat in the buff" - it's more common than you'd think).
What I'm getting at - I wonder if these other kinds of rentals fall within a different category which allows them to do what they do without it being a crime to do so? I don't know the answer...just wondering. I'd have to go research it and don't have time right now - guest just arriving - gotta run..