PROVINCETOWN – A new fee on some short-term rental units in Provincetown will go into effect on New Year’s Day.
Starting January 1, an additional 3% fee will be applied on occupancies of units that are one of multiple units in the town with the same operator. That operator must not be living at the same site.
Single-unit renters, licensed businesses, and owners who rent out one or two units at their own primary home are exempt from the additional charges.
Passed by voters this past spring at Town Meeting, the new rule aims to discourage the practice of “warehousing” properties. The extra fee targets developers who buy several units solely to rent them out for a short period of time.
Opponents of the practice contend that warehousing creates a smaller inventory for seasonal and year-round housing.
Properties that fall under the jurisdiction of the new three percent fee will now be taxed nearly 17.5% in total.
All money collected through this new fee will be split between the town’s Affordable Housing Trust Fund and their Year-Round Market Rate Rental Housing Trust.
More information on the rule can be found by clicking here.
About Brendan Fitzpatrick
