02/25/2019 BOARD OF SELECTMEN Agenda Packet

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DRAFT#1 MAY 2019 SPECIAL & ANNUAL TOWN MEETING WARRANT Page 21 f Explanation: This article will set aside funds in to Capital Stabilization account for future capital expenditures in an effort to ensure the Town will maintain its assets at a level adequate to protect the Town's capital investments and to minimize future maintenance and replacement costs. The Board of Selectmen recommends approval of Article by a vote of The Finance Committee recommends approval of Article by a vote of Article To see if the Town will vote to accept Section 3A of c. 337 of the Acts of 2018 (Section 3A of G. L. c.-64G) 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 the rate of 6% of the total amount of rent paid for each such occupancy, or take any other action relative thereto. Submitted by the Board of Selectmen Explanation: This article authorizes the imposition of a local excise tax of 6% of the total amount of rent paid for on the transfer of occupancy of various types of short-term rentals as authorized by c. 337 of the Acts of 2018, effective on July 1, 2019. The Board of Selectmen recommends approval of Article by a vote of The finance Committee recommends approval of Article by a vote of Article (to direct a portion of rooms tax to stabilization for certain capital expenses) 7o see if the Town will vote to accept Paragraph 4 of Chapter 40, Section 5B of the General Laws and dedicate, without further appropriation, into a special purpose Capital Expenditure. Stabilization Fund, created hereby for the purposes of implementation of the Town's wastewater management program, affordable housing, and transportation improvements, seventy- five percent of the local option rooms excise tax that the Town receives on the transfer of occupancy of a room in a bed and breakfast establishment, hotel, lodging house, short-term rental or motel, pursuant to its acceptance of General Laws Chapter 64G, Section 3A, as amended by Chapter 337 of the Acts of 2018; provided that said dedication shall take effect beginning in Fiscal Year 2020 which begins on July 1, 2019; and provided further that the Town shall not revoke its acceptance of this Act for at least three fiscal years; or to take any other action relative thereto. Submitted by the Board of Selectmen Explanation: The Municipal Modernization Act in 2016 allows a Town which accepts G.L. c. 40, §5B, to dedicate not less than 25% of the local rooms excise tax to any stabilization fund. This would include any new revenue generated from short-term rentals. The Town must accept paragraph 4 of§5B at Town Meeting, establish the stabilization fund (if an appropriate one does not already exist), and designate the percentage of the room excise (not less than 25%) to be deposited in the stabilization fund. No further appropriation into the fund is required to dedicate the funds. As with any appropriation from a stabilization fund, a two-thirds vote is required by Town Meeting. Once a town accepts the statute, the Town cannot revoke its acceptance for at least three fiscal years. This article creates a special purpose stabilization fund for dean water projects, transportation improvements and affordable housing, and directs 75% of short term rental tax receipts to this fund to offset the cost of said capital expenditures on the property tax. The Board of Selectmen recommends approval of Article by a vote of The Finance Committee recommends approval of Article by a vote of