Select Board places 3% short-term-rental community impact fee on special town-meeting warrant

On Sept. 9 the Select Board voted to place a community impact fee article on the special town-meeting warrant that would permit Dennis to adopt up to a 3% local option fee on short-term rental (rooms) taxes. Under the state framework the revenue split would reserve 35% for affordable housing or local infrastructure projects and allow the balance to go to the general fund.

Town Administrator Liz explained Dennis already collects local rooms tax (total local + state currently 14.45% including the Cape Cod and Islands Water Protection Fund), has implemented the wastewater infrastructure investment fund items in prior years, and is eligible to adopt a community impact fee under state guidance. The board discussed the statutory threshold that short-term rentals are defined by usage (rentals greater than 14 days per calendar year trigger registration/rooms tax), enforcement through state registration and an existing local compliance vendor, and how revenue could be budgeted.

After discussion the board moved to place and support a 3% community-impact rooms-tax article on the special town-meeting warrant. The motion passed unanimously. Board members asked staff and town counsel to clarify allocation language and suggested directing the 35% reserved receipts to housing and infrastructure accounts in the article language.