01/28/2019 BOARD OF SELECTMEN Minutes

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10 Board of Selectmen Minutes January 28, 2019 NEW BUSINESS Discussion of Possible May 2019 Town Meeting Article(s) re: Short Term Rental Taxes/Impact Fee: The Board of Selectmen reviewed the summary of the new law signed by Governor Baker on December 28, 2018 referenced as Chapter 337 of the Acts of 2018. The so-called Short Term Rental Act takes effect on July 1, 2019. The law amends the Room Occupancy Excise to include definitions and provisions applicable to short-term rentals made through internet hosting platforms such as Airbnb and establishes the Cape Cod & Islands Water Protection Fund which is funded in part by revenues received under the new short-term rental excise tax. Draft articles prepared by Town Counsel were presented to the Board of Selectmen to consider for placement on the May Annual or Special Town Meeting warrant. The first article proposes to accept Section 3A of Chapter 337 of the Acts of 2018 authorizing the imposition of a local excise tax upon the transfer of occupancy of a room in a bed and breakfast establishment, hotel, lodging house, short- term rental or motel at a rate of 6% of the total amount of rent for each such occupancy. The rate imposed can be equal to or less than 6%. The article would authorize the imposition of a local excise tax of not more than 6%on a transfer of occupancy of various types of short-term rentals. Two additional articles are proposed for the Annual or Special Town Meeting warrant separating the various types of short-term rentals. To authorize the imposition of a local community impact fee upon the transfer of occupancy of a professionally managed short-term rental unit at a rate of 3% of the total amount of rent for each such occupancy. The rate imposed can be equal to or less than 3%. And, to authorize the imposition of a local community impact fee upon the transfer of occupancy short-term rental units in a two-family or three-family dwelling that includes the operator's primary residence at a rate of 3% of the total amount of rent for each such occupancy. The rate imposed can be equal to or less than 3%. Motion made by Selectman Gottlieb that the Board of Selectmen is not intending to pursue the implementation of the article to impose a local community impact fee upon the transfer of occupancy short-term rental units in a two-family or three-family dwelling. Motion seconded by Selectman Cotton. VOTE: Unanimous. 5-0. Roll Call Vote: Selectman Sherman,yes Selectman Cahalane,yes Selectman Gottlieb,yes Selectman O'Hara,yes Selectman Cotton,yes Opposed, none The Board agreed to move forward to develop a draft article to authorize the imposition of a local excise tax upon the transfer of occupancy of a room in a bed and breakfast establishment, hotel, lodging house, short-term rental or motel at a rate of 6% of the total amount of rent for each occupancy. This is an increase from 4%to 6%.