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Knowlton Committee introduces short-term rental ordinance, declines immediate occupancy tax
Summary
Knowlton Township introduced Ordinance 2025-02 to regulate short-term rentals with an annual permit and self-certification system; the committee declined to pursue an occupancy tax now pending anticipated legal challenges and tax-assessor review.
Knowlton Township’s Committee voted to introduce Ordinance 2025-02 on Feb. 9, 2026, creating a short-term rental (STR) permit and self-certification program that aligns STR standards with the municipal master plan. The motion to introduce the ordinance passed (Mayor Debra Shipps moved; Committeewoman Starrs second).
The ordinance would require owners to obtain an annual permit and certify compliance with land-use standards and municipal requirements. Township Attorney St. Angelo told the Committee that, under current state law, STRs do not meet the State’s definition of a hotel and therefore are not subject to the State hotel/motel occupancy tax; municipalities sometimes impose a local occupancy tax by specific ordinance, but the attorney recommended against adopting such a tax now because related legal challenges are expected soon. The tax assessor retains independent authority to reclassify properties for assessment purposes when applicable.
Committee members debated the regulatory approach and enforcement mechanics before deciding to introduce the ordinance. The introduction means the ordinance will return for public hearing and formal adoption at a later meeting after the draft is circulated with attorney edits. The Committee tabled a separate Soil Importation ordinance (2025-01) to allow distribution of a revised version incorporating attorney and zoning officer changes.
Next steps: the Committee introduced the STR ordinance for future public hearing; staff will circulate the revised ordinance and schedule the public hearing as required by ordinance introduction procedures.
