So, if you aren't licensed you don't want them to report you to the state because I believe the fines can be hefty. 

That is fine, if that's what you want. 

As long as you market it as a single lease, you will be fine.

If I don't pay the small tax, I'll get fined an exorbitant amount.

I think its fine if you live there you mitigate your prop tax's with no state income tax..

I would always check the condos fine print rules and regulations and see if short term rentals are allowed at the building.

And it didn't take long for the hefty fines to start rolling in, including several high-profile cases in sectors beyond tech and retail, which have put other industries on notice.But how does this affect real estate?

Either way, they are past my cancellation policy so if things are fine, they should come, if they are not okay, then I will refund them because they really won't have an option.  

If you do that, you'll be fine.

Some other measure.... or some combo of the above or any other fair & equitable method appropriate for your situation.As long as it's easy, clear and well-explained in writing - and plainly laid out in the Tenants' leases - it will be fine!