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GA Blog: Community Impact Fee

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8.12.20 Rockport Adopts Community Impact Fee

At its annual town meeting last Saturday, Rockport voted to adopt two articles that will impose a 3% Community Impact Fee on short term rentals. 3% is the maximum percentage that can be implemented.

A Community Impact Fee is a tax applied to short term rentals (less than 31 days). Within Rockport the tax will apply to rentals that are either:

  • “Professionally managed” (defined as 2 or more units in non-primary residences)
  • Located within a two-family or three family primary residence

When a Community Impact Fee is adopted, at least thirty-five percent of the collected money must be dedicated to either affordable housing or local infrastructure projects. 

You can find more information on what was passed during the Rockport Town Meeting here.



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10.15.19 Rockport Considers Community Impact Fee

Following the 3% Community Impact Fee implemented in Gloucester, the Rockport selectmen are considering implementing the fee themselves.  The 5 member selectmen committee has expressed mixed opinions as they begin to research if a Community Impact Fee is right for Rockport.

Community Impact Fees for short term rentals stem from An Act Regulating and Insuring Short-Term Rentals.  Gloucester led the state in implementing their own Community Impact Fee.  The fee itself can be set anywhere from 0-3%.  The Massachusetts Association of REALTORS opposed the original legislation.

The decision in Rockport is far from final.  The Gloucester Times writes that “the conversation ended with Town Administrator Mitch Vieira saying he will research how the community impact fee has impacted other Massachusetts communities.”

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