Narragansett leaders and state delegation discuss short-term rental definitions, taxes and local ordinances

State and local officials discussed short-term rental regulation, tax treatment and local ordinances at a joint work session in Narragansett on Feb. 3.

State Representative Carol Hagan McEntee and Senator Alana DeMario told the town council that the General Assembly has a two-year study commission examining short-term rentals and related policy, and that bills on definitions and taxation are likely this session. "They're looking at shorter than that. They're looking at, less than a week I think," McEntee said, describing debate over whether rentals shorter than 30 days should be taxed differently.

Why it matters: changes at the state level would affect what municipalities can regulate and how tax revenue is distributed. Council members said Narragansett needs clear definitions and time to align local ordinances with any new state rules.

Discussion details: Council members and the delegation said the study commission is mostly listening to testimony and has not yet narrowed proposals. Senator DeMario and McEntee described fire-safety concerns already raised to the commission and said the fire department has reclassified short-term rentals for fire-safety purposes. McEntee advised council members to testify in Providence if the town wants influence: "If you really feel strongly about any of these bills... get yourselves up there and testify. Don't just send a letter," she said.

Tax and definition issues were a substantive part of the conversation. Participants described the existing cottage tax (the so-called "cottage tax," commonly applied to rentals under 30 days and described in the meeting as an 8% levy composed as "7 plus 1"), and said some legislators are considering subjecting short-term rentals to the full hotel tax (described in the meeting as 13 percent) for shorter stays. McEntee said state debate centers on whether to distinguish weekend rentals from week-long stays and where any additional tax revenue would be directed.

Local ordinance status: Council members said Narragansett is revising local registration and zoning language after litigation that affected local registration requirements. One council member noted recusal from the local short-term rental issue where applicable and said the town is setting up workshops to draft a new local ordinance. South Kingstown was cited as having scrapped and restarted its registration ordinance during the same period.

Unresolved items and next steps: The study commission was described as active for two years; members of the council were advised to monitor bill introductions closely and to consider passing town resolutions in support or opposition when appropriate. The delegation offered to provide testimony or letters of support for municipal positions.

Ending: The council agreed to track commission hearings and potential bills and to consider local workshops to update Narragansett's ordinance so it aligns with any new state law and addresses fire-safety, registration and tax questions.