Establish graduated fee on short term rentals with money going to housing
SB 517 introduces several amendments to existing Montana housing laws, particularly concerning the utilization of revenue generated from short-term rentals. These funds are to be allocated to the Housing Montana Fund, which supports various housing projects, such as new constructions, property acquisitions, and rehabilitation efforts. The bill mandates that a minimum of twenty percent of these funds be directed toward rural areas, fostering equitable access to affordable housing solutions across the state. By establishing a direct source of funding, the bill aims to address pressing housing needs in Montana, particularly amidst rising costs and economic challenges.
Senate Bill 517 establishes a graduated fee on short-term rentals in Montana with the funds raised designated for a grant program focused on creating affordable housing. The fee structure is tiered, where the rental owner pays 1% on the gross receipts for the first five units, 2% for the subsequent five, and 3% for any additional units beyond ten. Notably, properties classified as primary residences are exempt from this fee. This legislative measure intends to generate substantial revenue to support housing initiatives targeted at low-income and moderate-income households.
The introduction of this bill sparked discussions regarding the potential implications of additional fees on short-term rentals. Advocates argue that the financial support for affordable housing is crucial given the current housing crisis, while opponents express concerns over the impact of increased fees on property owners and the potential deterrent effect on the short-term rental market. Critics also raised questions about how effectively the funds would be utilized and whether they would lead to the intended improvements in housing accessibility and affordability.