HB2464

HB2464 limits how a municipality may regulate a business run from residential property by its owner or tenant to manufacture, provide or sell lawful goods or provide lawful services. “Business” includes a trade, occupation, profession or other commercial activity. The act became effective June 12, 2025 after meeting the immediate-effect vote threshold. Final law, Sections 1–2; business definition; official history.

The strongest protection applies to a “no-impact home-based business.” It must meet all four conditions: employees plus clients or patrons on the property never exceed the municipal occupancy limit; it generates no on-street parking or substantial traffic increase; none of its activities are visible from a street; and it neither substantially increases neighborhood noise nor violates a municipal noise rule. A city may not prohibit such a business or require its operator or property owner to obtain a license, permit or other approval to operate it. This is not an exemption for every business merely because its address is a home. Final law, new Section 229.902(a)–(b).

Two other protections apply to home-based businesses generally, not only the no-impact category. A city may not require nonresidential rezoning, or require a fire-sprinkler protection system where the residence consists only of a detached single-family structure or a multifamily structure with no more than two residential units. The sprinkler provision is not a blanket exemption for all apartment buildings or all fire-safety requirements. Final law, Section 229.902(b)(3).

Other safeguards remain. Subject to those prohibitions, a city may require compliance with federal, state and local law, including fire/building codes and health, sanitation, traffic, waste, pollution and noise rules. It may require the business to be compatible with residential use and secondary to the property’s use as a home. The act expressly permits limits or prohibitions on a home business that sells alcohol or illegal drugs, is a structured sober living home, or is a sexually oriented business under the referenced definition. This permission does not itself order every city to ban those uses or override other applicable law. Final law, Section 229.902(c); referenced business category.

The law does not prevent enforcement of homeowners’ association rules, deed restrictions or other private agreements. It also preserves municipal ordinances regulating short-term rental units. Nor does its municipal operating-approval limit itself waive a state occupational license or other applicable state or federal requirement. Final law, Section 229.902(c)–(d).