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Middletown Council Discusses STR Tax Ordinance Impact on Grandfathered Residents

September 16, 2025 | Town of Middletown, Newport County, Rhode Island


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Middletown Council Discusses STR Tax Ordinance Impact on Grandfathered Residents
In the heart of Middletown, Rhode Island, the Town Council convened on September 15, 2025, to address pressing issues surrounding short-term rentals (STRs) and their impact on local residents. The meeting, marked by a blend of concern and urgency, highlighted the complexities of existing ordinances and the need for potential revisions to better serve the community.

As council members gathered, the conversation quickly turned to the current regulations governing STRs. Under the existing ordinance, homeowners can only rent out two rooms of their primary residence, a rule designed to maintain the character of neighborhoods and prevent the rise of party houses. However, this restriction has left some long-term residents feeling unfairly penalized. One council member raised a poignant question: why should a homeowner who lives in their house full-time be limited in how many rooms they can rent, especially if they are only renting for a few months each year?

The discussion revealed a significant concern: residents who are grandfathered into the system—those who have been renting out more than two rooms prior to the new regulations—are now facing higher tax rates, effectively classifying them as non-residents. This has sparked frustration among homeowners like Rebecca Homer, who spoke passionately about her situation. A full-time resident and single mother, Homer explained how the increased taxes have become a financial burden, despite her compliance with all rental regulations.

Council members debated the implications of these restrictions, with some advocating for a revision that would allow grandfathered homeowners to retain their resident status while still renting out multiple rooms. The crux of the issue lies in balancing the need for regulation with the realities of residents trying to make ends meet through short-term rentals.

As the meeting progressed, it became clear that the council is considering a nuanced approach. They aim to differentiate between those who genuinely reside in their homes and those who do not, ensuring that the regulations reflect the community's needs without stifling the ability of residents to supplement their income.

The council's commitment to revisiting the STR ordinance signals a willingness to adapt to the evolving landscape of housing and rental markets. As they prepare to draft potential revisions, the voices of residents like Homer will undoubtedly play a crucial role in shaping the future of short-term rentals in Middletown. The outcome of these discussions could redefine the relationship between homeowners and local regulations, fostering a more equitable environment for all.

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