Short-term rentals in Coolbaugh Township, explained properly.

Transient use is occupancy, use or possession of a dwelling unit by a person or persons for a period of less than 30 consecutive days, other than the owners, tenants with a lease of 30 consecutive days or more, and the family of the owners or tenants; it also leaves out temporary stays by unrelated guests of the owner or tenant who pay no rent or other compensation. A short-term rental covers single-family, two-family and multifamily dwelling units, whether or not they are permanent residences or seasonal or vacation homes, and includes renting in whole or in part (Sec. 324-5).

Section 324-8A lists the application contents: the owner's name, address, telephone and email; the managing agency, agent or contact person and a 24-hour phone number; a photograph of the rental from the access road side; a floor plan if the Township deems it necessary; acknowledgment that each designated bedroom is at least 70 square feet; the number of bedrooms and the maximum overnight occupants; for a two-family or multifamily building, the number of units and how many are rented; a diagram or photograph showing designated parking spaces and the maximum vehicles; the sewage system details and pumper/hauler evaluation; acknowledgments that the owner has read the regulations and will post the required notice and the 911 emergency address sign; a current Monroe County Hotel Room Excise Tax Certificate; and the declaration page of a paid-up policy with at least $500,000 liability coverage for the whole license term. The Township may ask for other information it deems reasonably necessary. An application missing required information after 90 days is invalid and subject to denial, and its fees are nonrefundable (Sec. 324-8D).

An application for a short-term rental license is accompanied by an initial fee set by resolution of the Board of Supervisors, and an annual renewal fee is also set by resolution (Sec. 324-9A, B). A separate inspection fee set by resolution applies to any inspection the Township deems necessary, and a separate fee applies to the sewer inspection (Sec. 324-8B, C, Sec. 324-9D). Application and renewal fees are nonrefundable (Sec. 324-9C). The fee schedule hasn't been reviewed yet, so this page shows no dollar amounts; ask the Township for the current resolution before applying.

Section 324-9B says that if the renewal fee is not paid within 60 days of the expiration date for the last license issued for the property, the license is null and void and a new license application, not a renewal, is required before renting. The license must also be renewed whenever the governed conditions of the rental change (Sec. 324-6C). Inspection and sewage inspection apply at each renewal.

An inspection is required before the license is issued and at renewal, with an inspection fee set by resolution (Sec. 324-8B). The on-lot sewage system is inspected separately at each application and renewal (Sec. 324-8C). All premises used as short-term rentals are subject to inspection by the enforcement officer or another authorized Township representative to verify application, licensing or operating requirements or if a violation is suspected (Sec. 324-12A). By applying for or accepting a license the owner consents to the inspections (Sec. 324-6H).

Section 324-6I(1) is headed "License not transferable". It says the license is personal to the owner named in the application. If ownership changes by sale, deed transfer, death, a change in ownership of the owning entity, sheriff sale or court order, the new owner must apply for a license before renting as a short-term rental, but is entitled to get one if the new owner complies with the chapter. Where an owner has been convicted of a violation or had the license revoked, a transfer to family members or to an entity owned by the violating owner or the owner's family leaves the new owner subject to the violations and penalties (Sec. 324-6I(2)). The clause can be read either as barring transfer or as a re-application with a right to a license, so the rule is marked for review.

Section 324-10A(3) says no short-term rental is permitted within a dwelling unit that uses a sewage holding tank, and that a holding tank is not an acceptable on-lot sewage disposal system for the use. Other properties must show the sewage system is adequate for the rental: approval by the Sewage Enforcement Officer or a previously issued sewage permit the Township accepts. The number of bedrooms cannot exceed the bedrooms on the sewage permit or approved after the Township's septic inspection. The application must include the location, type, approximate age and capacity of the system, an evaluation from a pumper/hauler that it is working as intended, and proof the tank was inspected by a pumper/hauler within three months before the application or renewal (Sec. 324-8A(10)). The Township inspects the system at each application and renewal, and may deny or not renew the license if the system is inadequate (Sec. 324-6K). If the system malfunctions, rental use stops on notice until the Township is satisfied it is fixed.

Overnight occupancy is limited to the number in the license, not to exceed two persons per bedroom plus four additional persons per residence or 14 persons per residence, whichever is less; the total can never exceed 14 (Sec. 324-10A(1)). Infants under two years old are not counted. The owner must limit occupancy by written agreement and make sure advertising states the correct permitted number. The maximum number of day guests at one time is 75% of the maximum overnight occupancy (Sec. 324-10A(2)).

A bedroom is a room intended for or capable of sleeping use that is at least 70 square feet (Sec. 324-5). A short-term rental must also have at least one other habitable room of at least 120 square feet (Sec. 324-10A(5)). The number of bedrooms cannot exceed the number approved on the sewage permit or approved after the septic inspection, and the number of bedrooms cannot be increased without Township (and DEP, if required) approval (Sec. 324-10A(3), (4)).

The owner must limit vehicles by written agreement to the number in the license, not more than the designated on-site spaces (Sec. 324-10A(6)). All parking for overnight and day guests is designated in the license and must be on the owner's property. A minimum of one space per bedroom is required, and garage spaces that can hold vehicles may count. Spaces must be improved to a mud-free condition with paving, stone or similar approved material and count toward maximum lot coverage under the Zoning Ordinance. Each space is a rectangle at least nine feet wide and 18 feet long with adequate aisle width. If the rental is accessed directly from a Township or state road, parking spaces must be reached from the driveway and not directly from the road.

The owner must use best efforts to keep occupants from creating unreasonable noise or disturbances or breaking the law, tell occupants the rules, and respond when notified (Sec. 324-10A(7), (8)). Exterior lights must direct light away from neighbors and be shielded downward. Occupancy of recreational vehicles, camper trailers and tents is not allowed, but children under 13 may camp out in a tent on the premises. Open fires, fire pits and charcoal grills must comply with Chapter 149 (Open Burning) and all open fires must be extinguished by midnight. Smoke or fire detectors, fire extinguishers and carbon monoxide monitors required by the applicable codes must be present and working. Knox box installation is encouraged; an owner who does not install one signs a waiver and release in a form acceptable to the Township.

The owner must post a copy of the license and a copy of the Sec. 324-10 conditions in a conspicuous place in the rental (Sec. 324-10A(12)). A clearly visible notice must be posted in the unit on or next to the front door with: the 24-hour contact name and phone number; the maximum occupants and maximum day guests; the maximum number of vehicles and the rule that guest parking is on the property and not in a right-of-way; the number and location of parking spaces and any snow-removal and emergency-access parking rules; the trash pickup day and the rule that trash is not left outside except from 6:00 p.m. the day before pickup to 6:00 p.m. on pickup day unless a bear-proof container is used; and notices that an occupant may be cited and fined for disturbances and that parking or occupancy violations are subject to citation and fines (Sec. 324-10A(13)). The owner or contact person must also post and maintain the 911 emergency address sign (Sec. 324-8A(13)).

The owner must make sure all advertising and marketing states the correct and permitted number of occupants and must not market the rental in a way inconsistent with the occupancy limits or the license (Sec. 324-10A(1)). Marketing that exceeds the maximum occupancy or promotes any other activity prohibited by the chapter can be used as evidence of a violation (Sec. 324-13). The owner or contact person must give the enforcement officer a copy of all advertisements for the rental at application, renewal and on request.

Section 324-3B says the chapter is not intended to and does not excuse any landowner from compliance with the declarations or covenants in a planned community where a short-term rental may be located. The chapter also does not excuse compliance with Chapter 400 (Zoning).

A violation of the chapter, or of an order to abate or correct one, is subject to criminal prosecution and revocation of any license (Sec. 324-16A). A person who violated or permitted a violation is fined not more than $1,000 per day of violation on judgment by a Magisterial District Judge, together with costs of suit and reasonable attorney fees; each day is a separate offense (Sec. 324-16B). The Township may also seek an injunction (Sec. 324-16C). A violation is declared a public nuisance (Sec. 324-4). The owner is responsible for violations by the owner's agent, managing agency, contact person or renting occupants (Sec. 324-3C).

If an owner is convicted of three violations in any rolling twelve-calendar-month period, the Township revokes the license for one year and the rental must stop. A fourth or more conviction is cause for permanent revocation. A violation of the Pennsylvania Sewage Facilities Act and its regulations may result in immediate revocation until corrected (Sec. 324-16D). The Board of Supervisors may reinstate a license, at its sole discretion, if satisfied there has been an appropriate change of ownership or the cause has been corrected and the chapter is otherwise met (Sec. 324-16E). The enforcement officer may add conditions to a license or renewal after a prior violation (Sec. 324-10C).

Appeals of a denial of an application or renewal, or of a revocation, are filed in writing with the Board of Supervisors within 30 days of the denial or revocation, on Township forms with a fee set by the Board (Sec. 324-17A). The Board holds the hearing under the Local Agency Law with at least 15 days' written notice, within 60 days of filing unless the appellant agrees in writing to an extension, and issues a written decision within 45 days after the hearing ends, unless extended by written agreement (Sec. 324-17B).

Section 210 of Pennsylvania's Tax Reform Code of 1971 imposes an excise tax of 6% of the rent on every occupancy of a room or rooms in a hotel in Pennsylvania, collected by the operator from the guest and paid to the state. For this tax a hotel is any building in which the public may, for consideration, obtain sleeping accommodations, and a guest who has occupied or has the right to occupy a room for at least 30 consecutive days is a permanent resident, whose stay is not taxed. Rent includes all charges for the stay, including any amount charged by a booking agent. The Department of Revenue says anyone who rents out property for lodging for less than 30 days to the same person must collect and remit the tax, and that it applies to rooms, apartments and houses arranged through online or third-party brokers. Some counties add their own hotel tax, collected by the county treasurer; those county taxes are shown on each place's page.

Since a 2018 amendment (Act 109 of 2018), section 210 of the Tax Reform Code says that if a booking agent acting for an operator collects payment for rent, the booking agent must collect and remit the 6% state hotel occupancy tax and any additional hotel tax imposed under listed laws, including Articles XVII and XXIII of The County Code. A booking agent is a person or entity that facilitates or collects payment for hotel accommodations for an operator, but not someone who only publishes advertisements, and an operator includes anyone acting as a booking agent. The Department of Revenue's home-sharing page still says some home-sharing websites and brokers collect the tax voluntarily and tells hosts to check with the company who is responsible; a host who books only through a site that confirms it collects and remits the tax should not register for a tax license.

The Department of Revenue says a host who does not book exclusively through a third-party site, or whose site does not collect and remit the hotel occupancy tax, must register with the Department for a Sales, Use and Hotel Occupancy Tax License through the Pennsylvania Online Business Tax registration at mypath.pa.gov. After registering, the host files returns and pays the tax electronically through myPATH. A host who books exclusively through a third-party site that confirms it collects and remits the tax should not register.