Selectboard adopts short-term rental ordinance; will take effect Sept. 1, 2026

The Montgomery Selectboard voted June 15 to adopt a revised short-term rental ordinance presented by the Planning Commission, which the board said would move enforcement out of the town’s conditional use/zoning process and into a standalone ordinance. The motion to adopt the ordinance, made by Selectboard member Dennis Himes and seconded by Chris Dixson-Boles, passed 3–1. Charlie Hancock recorded the dissenting vote. Barring a voter petition, the ordinance will take effect September 1, 2026.

The ordinance in the meeting packet and attached text requires owners to register short-term rentals with the town, establishes a schedule of fees (initial application $300; renewal $150; late renewal $200), sets occupancy limits at two people per bedroom plus up to two additional people per dwelling unit, and requires commercial general liability insurance of at least $1 million per occurrence. Enforcement provisions allow civil penalties up to $800 per day for unregistered operation and a graduated penalty schedule for other violations; the ordinance also authorizes inspections as part of registration review. Diane Sherman of the Planning Commission introduced the draft and summarized attorney-recommended changes on enforcement and transition from zoning conditional use to an ordinance.

The board discussed next steps, including public notice and the possibility of a voter petition; Charlie Hancock will work with town staff to post required notices and timelines. The full ordinance text was included in the meeting materials and contains detailed registration, inspection, and enforcement procedures.