Councillor Vivienne Parry said the issue had become a major problem in Ludlow, attracting vermin and putting off visitors.
She is now urging Shropshire Council to clamp down on the offending property owners – and act quicker to clean up the mess.
In a member’s question submitted ahead of a meeting of the full council next week, Councillor Parry said: “Airbnbs and holiday lets are businesses and are asked to pay for rubbish bins.
“They are not doing this, asking people who stay on holiday to take rubbish with them home, but in many cases this does not happen and it is dumped in the waste small black bins on street, or in parks or in the street all over the floor.
“Council waste bin collectors – not the dustbin men – tell me that they have been told not to collect and it stands on the ground for days not collected with vermin running over it.
“I have then asked for a collection which I would think costs this council more money, and, because it has been left on the floor, spills everywhere needing to be swept, [taking up] time and money.
“I hope we can do something about this as it makes Ludlow look bad and I am sure visitors wonder why our beautiful town is left in this state.”
Councillor Parry, who represents the town’s south ward, also said it was not fair on other business owners who pay for trade waste collections.
She added: “Asking one of the pubs in town, the landlady said she pays £150 a week for her waste to be removed.
“Why are other businesses able to get away with not paying? Please can something be done urgently.”
Councillor Ian Nellins, Shropshire Council's cabinet member responsible for the environment, promised enforcement action would be taken if the culprits could be identified.
He said: “For traders it is their responsibility to arrange for trade waste collection for which the business is required to pay.
“If these properties are being let via Airbnb, then it would be classified as trade waste.
“If specific properties can be identified that are causing issues, then these can be investigated and assessment made of what action the council could take.
“If there is evidence which can be attributed to a business then ultimately the council can take enforcement action.”