Short-term rentals in Nantucket, explained properly.

Sec. 123-2. A transient residential facility is excluded and takes its meaning from Chapter 139 of the Town Code, which we haven't reviewed.

Sec. 123-3(G). Sec. 123-3(K) separately lets a new owner who receives a property by will, trust or other instrument continue short-term rental activity under that section; how that sentence interacts with the new-application rule is unsettled, so this rule is marked for review.

Sec. 123-3(F) and Sec. 338-3. Renewal depends on compliance with the chapter and the regulations during the preceding year.

Sec. 338-5(A). Rental solicitations must also state the maximum number of occupants and vehicles allowed (Sec. 338-5(D)(1)).

Sec. 338-4(C)(4) and Sec. 123-3(D)(2). The regulations tie the duty to conditions that may endanger the health, safety or well-being of occupants, as set out in 105 CMR 410.750. The operator must also give renters the local designated person's contact information (Sec. 338-5(D)(2)).

Sec. 338-4(C)(5); Sec. 123-3(D)(3) leaves the amount to the regulations. The Board of Health will not issue a certificate without it.

Sec. 338-5(C). Solicitations must also include a copy of the certificate, the maximum number of occupants and vehicles, the party, event and wedding policies, and whether the unit is professionally managed (Sec. 338-5(D)(1)).

Sec. 338-5(D)(2). The trash, noise and lighting items must be posted centrally in the unit.

Sec. 338-5(B).

Sec. 123-3(C) and Sec. 338-4(C)(6), which also require an attestation of compliance with G.L. c. 64G, the Fair Housing Act (G.L. c. 151B) and other laws, subject to Chapter 19, Secs. 19-13 to 19-18 of the Town Code. The application also needs the Massachusetts Department of Revenue identification number or proof of exemption.

Sec. 123-3(J) bars them, except that it does not apply to mortgages, liens and similar interests or to family, partnership, association or trust arrangements held and transferred within the group. The same subsection also exempts time-share units whose owner obtains a certificate and shows a rental to a third party of less than 30 days before January 1, 2024. The two exceptions read unclearly together, so we have marked this row for review.

Sec. 123-3(E) and Sec. 338-8.

Sec. 338-6(A) and (B). The quarterly report covers each listing's location, whether it is a room, apartment or whole house, nights occupied in the period, and the operator's name and contact information.

Sec. 123-3(A) requires the Department of Revenue certificate of registration issued under G.L. c. 62C, Sec. 67 with the application, and Sec. 338-6(A) requires evidence that the rooms occupancy tax was remitted. We haven't reviewed the Town's local excise votes.

Sec. 338-4(B). The fee comes from Chapter 338, which the Board of Health and Select Board amended in its entirety on 3-19-2026; we haven't reviewed a separate fee schedule.

Sec. 123-5(A), (B) and (D). The Board of Health, its agent or a police officer is the enforcing authority for noncriminal disposition. Each day a violation continues is a separate offense for the civil penalty under G.L. c. 64G, Sec. 14(v).

Sec. 123-5(C) and Sec. 338-9. Under the regulations the Board may, after a public hearing, issue a warning letter for a first offense and may assess a fine or civil penalty for later ones.

Chapter 64G section 3 imposes an excise of 5 per cent of the total amount of rent for each occupancy of a short-term rental, with no excise if the total rent is less than $15 per day, payable by the operator to the commissioner of revenue when the operator files the return under chapter 62C section 16. No excises or fees under the chapter apply if the operator transfers the short-term rental for not more than 14 days in a calendar year, but only if the operator first registered with the commissioner and filed a signed declaration (required annually) of the intent to do so; an operator who transfers it for 15 days or more, or who does not register and file the declaration, owes the excise and fees, including on the first 14 days. Section 3A lets a city or town that accepts it by vote impose a local excise of not more than 6 per cent of the rent (Boston, 6.5 per cent), which the operator pays to the commissioner together with the State excise. Section 3D lets a city or town that accepted section 3A impose, by separate vote, a community impact fee of not more than 3 per cent of the rent on professionally managed units, and by a further vote on units in a two- or three-family dwelling that includes the operator's primary residence, with at least 35 per cent of the proceeds dedicated to affordable housing or local infrastructure. Section 3C adds a 2.75 per cent excise in municipalities that belong to the Cape Cod and Islands Water Protection Fund. Under section 14 of the 2018 act, sections 3, 3A, 3C and 3D apply to occupancies that start on or after July 1, 2019 under contracts entered on or after January 1, 2019. Which cities and towns have accepted the local options is shown on each place's page where official sources show it. This page does not combine these rates into one total.

Section 6 of chapter 64G, as enacted by chapter 337 of the Acts of 2018 (approved December 28, 2018), says a person shall not operate a bed and breakfast establishment, hotel, lodging house, short-term rental or motel unless a certificate of registration has been issued under section 67 of chapter 62C. The chapter defines a short-term rental as an owner-occupied, tenant-occupied or non-owner occupied property, including an apartment, house, cottage or condominium, where at least one room or unit is rented to an occupant and all accommodations are reserved in advance, and counts occupancy of a room in a short-term rental normally used for sleeping and living purposes for not more than 31 consecutive calendar days. An operator who transfers the rental for not more than 14 days in a calendar year must still register and file an annual declaration to qualify for the excise exemption. An intermediary that collects rent for an operator must obtain the certificate in the operator's name. A city or town may accept the State certificate in place of a local license or registration. We haven't reviewed the text of chapter 62C section 67 yet.

Chapter 175 section 4F(b) requires an operator to maintain liability insurance of not less than $1,000,000 to cover each short-term rental, unless the rental is offered through a hosting platform that maintains equal or greater coverage. The coverage must defend and indemnify the operator and any tenants or owners in the building for bodily injury and property damage arising from the short-term rental. A hosting platform must tell the operator, before the operator offers a rental through it, that standard homeowners or renters insurance may not cover third-party property damage or bodily injury. An operator who intends to run a short-term rental must notify any insurer that writes a homeowners or renters policy for the property.

Section 14 of chapter 64G, as enacted by chapter 337 of the Acts of 2018, lets a city or town by ordinance or by-law regulate operators registered with the Department of Revenue and impose penalties. Among the listed powers, it may regulate the existence or location of operators, the class of operators, the number of local licenses or permits and the number of days a person may operate and rent out an accommodation in a calendar year; require licensing or registration (accepting the State certificate in its place, or issuing a provisional license for temporary or seasonal use); require operators to show there is no outstanding building, fire, health or zoning enforcement; require health and safety inspections at the operator's cost; set a civil penalty (telling the commissioner of revenue when it suspends or ends an operator's right to operate); and set a reasonable fee for local administration. Operators must also post inside the unit the location of fire extinguishers, gas shut-off valves, fire exits and fire alarms. A city or town may publish a public registry of registered short-term rentals. The sources reviewed are the 2018 act as passed and individual codified sections; we haven't reviewed the current codified text of section 14 or any Massachusetts agency pages.

Section 15 of chapter 64G, as enacted by chapter 337 of the Acts of 2018, says nothing in the chapter confers a right to lease, sublease or otherwise offer a residential unit as a short-term rental where that use is prohibited by a homeowner's association agreement or requirements, a rental agreement or any other restriction, covenant, requirement or enforceable agreement. Section 16 adds that for residential units subject to rent control, operators of short-term rentals shall charge not more than the prorated maximum amount allowed.

Section 13(a) of chapter 64G, as enacted by chapter 337 of the Acts of 2018, lets an operator elect, by written agreement, to allow an intermediary to collect rent or facilitate its collection or payment. The chapter defines an intermediary to include a hosting platform and an operator's agent. An intermediary with such an agreement must apply for and obtain a certificate of registration from the commissioner on the operator's behalf, assess, collect, report and remit the excise, remit any community impact fee to the municipality, keep records, and make sure the operator is registered before allowing the operator to list a rental through it. The certificate must be in the name of the individual operator, not the intermediary. Check with the platform and the Department of Revenue to confirm whether a platform collects the excise for you.