01/28/2019 BOARD OF SELECTMEN Agenda Packet

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Authorizes municipalities to impose a local excise tax upon a transfer of occupancy of various types of short-term rentals at a rate of not more than 6% of the total amount of rent, except where the rent is less than $15/day which is exempted. This local tax is paid to the DOR by the operator and'is distributed back to municipalities quarterly. Acceptance of the local excise tax is by majority vote of an annual or special town meeting and takes effect on the first day of the calendar quarter following 30 days after its acceptance or on the first day of a later calendar quarter as the city or town may designate. Authorizes municipalities to establish, by a separate town meeting vote, a community impact fee of not more than 3%of the total rent for each transfer of occupancy of a professionally managed unit or within a two or three-family dwelling including the operator's primary residence. This impact fee is paid directly to the municipality. Creates.penalties for noncompliance with the law and misrepresentation of operator status. Allows municipalities to establish bylaws and ordinances to regulate operators including: (a) regulation of the existence or location of operators and the number of local licenses or registrations or to allow temporary or seasonal permits; (b) authorizing a local licensing process; (c) limiting short-term rentals to properties that are in compliance with building, electrical, plumbing, mechanical, fire, health, housing or zoning codes and any violations thereof ; and (d) authorizing a reasonable local fee associated with local licensing, inspection and compliance. 2)Select Provisions of the Act (Chapter 337 of the Acts of 2018). (SECTION 1). The Executive 'Office of Housing and Economic Development, in consultation with the Executive Office. of Technology.Services and Security and the Department of Revenue, shall establish and maintain a registry for all short-term rental operators under M.G.L c. 64G who file an application and ai-e issued a certificate of registration in accordance with M.G.L c, 62, § 67. An "Operator', is defined as "a person operating a bed and breakfast establishment, hotel, lodging house, short-term rental or motel in the.Commonwealth including, but not limited to, the owner or proprietor of such premises, the lessee, sub-lessee, mortgagee in possession, licensee or any other person otherwise operating such bed and breakfast establishment, hotel, lodging house, short-term rental or motel". Not later than September 30, 2019, the Executive Office of Dousing and Economic Development is required to promulgate regulations necessary to develop and implement a registry that is accessible and available to the public; and support the competitive operation of the traditional lodging industry, short- term rental industry and hosting platforms to operate competitively in the Commonwealth. (SECTION 2). Chapter 29C'of the General Laws is amended by establishing a separate fund called the Cape Cod and Islands Water Protection Fund (the "Fund"). Revenue from appropriations or other money authorized by the General Court and specifically designated to be credited to the Fund including, but not limited to, revenues received under the excise imposed under Section 3C of chapter 64G, any investment income earned on the fund's assets and all other sources shall be credited to the Fund, each source being tracked separately for accounting purposes as of June 30 of each year. The excise imposed under Section 3C shall be at the rate of 2.75% of the total amount of rent paid for each taxable occupancy. 2