Raised Bill No. 1025 - Short-term Rental Properties

• Licensing requirement: Short-term rental operators must obtain a license from the Commissioner of Consumer Protection for each dwelling unit operated as a short-term rental property on or after January 1, 2022, renewable every two years.

• Insurance and notification: Applicants must maintain property and casualty insurance with minimum $1 million liability coverage and notify property owners of abutting and adjacent dwelling units about the short-term rental use.

• Municipal taxation and regulation: Municipalities may levy a tax on short-term rental operators up to 6% of their income from such transactions and may limit the number of days guests can occupy short-term rental properties annually.

• Sales and use tax: Short-term rental transactions are subject to 5% sales and use tax (as opposed to the standard 6.35% rate), with 50% of revenue from this tax deposited into the Housing Trust Fund effective July 1, 2021.

• Definitions and enforcement: The bill defines key terms including short-term rental property (dwelling unit for 30 or fewer consecutive days), guest, operator, and short-term rental platform, with the Attorney General authorized to seek injunctions against violations.