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Wells Select Board examines lodging and short-term-rental fee options; counsel cites 'reasonable relationship' test
Summary
At a Nov. 18 workshop town counsel reviewed court guidance (Eno v. Bar Harbor) and urged fees bear a reasonable relationship to administrative and public-safety costs; the board discussed occupancy assumptions, campground tax contributions, potential inspection staffing, and whether to fold STRs into lodging licensing.
The Town of Wells spent a significant portion of its Nov. 18 meeting on a workshop about lodging fees and the possible inclusion of short-term rentals (STRs) under a lodging-licensing regime.
Town counsel reviewed legal guidance — citing the Eno v. Bar Harbor decision and the broader Butler line of cases — that a municipal fee must bear a “reasonable relationship” to the cost of providing the regulated service. Counsel listed permissible fee factors that can be considered, including staff time, inspections, multiple compliance visits, public-safety and emergency-response costs, and third-party inspection expenses. Counsel told the board that a…
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