Middletown Council Revises Tax Ordinance to Encourage Long Term Rentals

Middletown's Town Council convened on August 4, 2025, to address pressing housing issues and tax regulations impacting residents. A significant focus of the meeting was the ongoing challenges related to housing availability, which have persisted for several years, as highlighted by council members referencing the town's comprehensive plan from 2014.

One of the key discussions revolved around the two-tier tax ordinance that differentiates between resident and non-resident tax rates. This ordinance aims to incentivize landlords to offer long-term rentals rather than short-term ones, a move intended to increase the availability of housing in the community. The council reviewed recent amendments to this ordinance, which were designed to encourage property owners to rent their units on a long-term basis, thereby addressing the housing shortage.

During the meeting, residents expressed concerns regarding the implementation of these tax classifications. One resident, Jim Thompson, shared his experience of being informed that he no longer qualified for the resident tax rate after previously being assured of his status. This unexpected change could result in significant financial implications for him and others in similar situations. The council acknowledged the confusion surrounding the grandfathering of short-term rental statuses and the impact of tax changes on residents' financial planning.

Additionally, the council discussed the potential for future amendments to the tax ordinance to accommodate military families, suggesting that shorter lease terms, such as 10 months, could be considered to better support this demographic.

As the meeting concluded, the council emphasized the importance of addressing these housing and tax issues to ensure that Middletown remains an affordable and accessible community for all residents. The discussions highlighted the need for ongoing dialogue and potential revisions to existing policies to better serve the needs of the community.