09/11/2017 BOARD OF SELECTMEN Agenda Packet

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impose a local excise tax. Further,based upon the dramatically different characteristics of the cities and towns throughout the Commonwealth,we strongly support the provision in H.3454 allowing for the imposition of occupancy tax by local option. As the number of seasonal units utilized as short-term rentals on the Cape,and throughout the Commonwealth,continues to grow,we are supportive of prompt action on this.important topic. Thresholds Cape Cod has a peak rental season of only approximately 10 weeks per year. Accordingly,a threshold establishing a minimum number of days that a property must be rented in order to subject it to regulation and taxation would be unlikely to address the issues faced by Cape communities. Any significant threshold would likely mean that most short-term seasonal rentals would not be subject to regulation,taxation,or business license requirements. Under such circumstances,there would be very little increase in available revenue in communities like ours where services are directly impacted by rentals during a limited peak rental season.We would therefore respectfully request that any evaluation of thresholds include consideration of the implications of establishing applicability thresholds,and,if such thresholds are determined to be appropriate,that further consideration be given to establishing thresholds that address issues for communities with limited rental seasons. Uniform Application House Bill 3454 appears to only apply to short term residential rentals offered on a hosting platform, defined to include a`website,software,online-enabled application,mobile phone application or some other similar process to advertise the Residential,Unit through a website". While this language certainly addresses the significant, and currently unregulated,rapidly expanding area of online rentals,we have concerns that such limited applicability will omit other important short-term residential rental platforms. We would submit that defining"Short-Term Residential Rental"in H3454 to apply to all short-term rentals would ensure that all proposed short-term rentals are treated similarly,providing for predictability for both hosts and renters,and avoiding the creation of opportuunities.to circumvent the law. Safety Measures We fully support the provisions in H.3454 requiring a safety inspection prior to offering a unit for "Transient Use",and annual inspection of such units to ensure compliance with applicable health and safety codes in the same manner as those required for all other lodging establishments. We respectfully suggest,however,that all cities and towns should have authority to promulgate or adopt bylaws,ordinances,or regulations to protect the public health and safety,regardless of whether the municipality has accepted the provisions of the statute for purposes of imposing a local excise tax. There is no responsibility more clearly required of a municipality than ensuring the public health and safety,and therefore believe that such authority is essential to implementing any regulatory scheme. Clear Process for Regulation_ and Taxation Another area that we wish to emphasize is the importance of a clear process and division of responsibilities for the.collection and payment of the local excise tax and regulation. As with the imposition of any new excise,it is imperative that each of the involved parties have a clear understanding of its obligations. As the Department of Revenue is experienced in collecting excises and distributing appropriate portions of collected revenue to cities and towns,we would respectfully suggest that the Department be given authority to issue regulations clarifying these issues. Moreover,we have some concern that while payment of such excise is made to the Department,one provision of H.3454 suggests that each municipal treasurer/tax collector will be responsible for enforcing the requirements of the so-called`Business and Tax Regulations Code". While we are uncertain as to the specific referenced code,we have a greater concern about the coordination of enforcement efforts.