Short-term Rental Community Impact Fee
The implementation of HB H6096 is expected to have significant implications for local governments and the housing market. The fees collected will be used specifically for enhancing local infrastructure, matching funds for municipal grants, and managing costs related to housing development, thereby allowing municipalities to better cope with the impacts of short-term rentals. Supporters of the bill argue it addresses the negative consequences that short-term rentals can have on communities, such as increased demand for local services and potential safety concerns.
House Bill H6096, titled the Short-Term Rental Community Impact Fee Act, aims to provide local governments in Rhode Island with the authority to levy a community impact fee on short-term rentals. The bill seeks to address the public health and safety concerns arising from the increasing number of short-term rental properties in communities. It allows cities and towns to impose a fee of up to two percent on the total consideration charged for the rental of entire residential properties for less than thirty-one consecutive days. This act is set to take effect on January 1, 2024, pending passage.
While proponents of the bill emphasize the need for municipalities to have tools to manage the effects of short-term rentals, there may be contention regarding the appropriateness of imposing such fees. Critics could argue that this act may deter investment in short-term rental properties, which can help promote tourism and economic growth. Additionally, some community members may raise concerns about how the funds from these fees are utilized and whether they will effectively address the identified issues stemming from short-term rentals.