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Dune City adopts 5% variable fee for short-term rentals to fund enforcement
Summary
After debating two models, Dune City council voted to adopt a variable-rate short-term rental fee (option 1) designed to support code enforcement and administration; council discussed enforcement scope and that revenue would be retained by the city.
The council voted to adopt a variable-rate short-term rental permit fee (option 1), a percentage-based model intended to generate predictable revenue for enforcement and administration. The motion to adopt the 5% variable fee was moved and seconded, and councilors called the question; multiple councilors voted "Aye" and the proposal passed.
Staff explained that the fee mirrors the room-tax model and that existing room-tax portions to county and state remain unchanged; the new fee is intended to cover code-enforcement costs tied to short-term rentals. Councilors noted uncertainty about the number of short-term rentals in town and that some established rental properties pre-date the ordinance but are now registering. The council asked staff to return with implementation details and enforcement plans.
Why it matters: short-term rental regulation affects neighborhood character, septic-system loads, and municipal enforcement needs; the adopted fee creates a local revenue source to support enforcement and administration.
