Scituate Imposes 3 Percent Impact Fee on Professionally Managed Short-Term Rentals

Key Points

  • A 3% community impact fee was approved for non-owner-occupied short-term rentals.
  • Projected revenue is approximately $165,000 annually.
  • Statute requires 35% of funds be spent on affordable housing or infrastructure.
  • The fee takes effect July 1, 2026.

Town Meeting members voted to approve Article 34, establishing a 3 percent community impact fee specifically for professionally managed short-term rentals. The fee applies to operators who manage two or more units in town that are not located within their primary residence. Select Board member Andrew Goodrich stated that the intent is to ensure outside residents pay these taxes so we don't have to raise property taxes for local homeowners.

According to the Select Board, the fee is expected to raise an additional $165,000. Under state law, 35 percent of the revenue generated from this fee must be dedicated to infrastructure projects or affordable housing initiatives. Town Administrator Jim Boudreau highlighted the strain these rentals place on town services, noting that there are 220 registered short-term rentals in Scituate. My staff spends an inordinate amount of time on complaints about parties, noise, and parking, Boudreau said, adding that the impact on water and sewer infrastructure is also immense.

The new fee will go into effect on July 1, 2026. The measure was supported by the Advisory Board as a way to ensure that the commercial use of residential properties contributes to the community impacts they create.