Maine STR Regulations
Maine Vacation Rental Tax: 9%
Casual Rentals (Less Than 15 Nights Annually): If you own a single rental property, such as a room or condominium, and rent it out for fewer than 15 days per year, you’re generally not subject to tax requirements. However, if you engage a real estate agent or pay a property manager to oversee your short-term rental, they are required to collect and report a 9% tax, regardless of the rental duration.
Long-Term Occupancy (28 Days or More): Rentals for 28 days or longer are exempt from this tax if the renter uses the property as their primary residence or is renting in connection with education or employment.
Property owners must register for and collect the tax on all rentals, regardless of their advertising status. This includes Airbnb listings, where the tax is included in the reservation price.
Vacation rental owners are legally required to register with the Maine Revenue Services and obtain a Retailer’s Certificate. VHRs must remit state sales tax to the Maine Revenue Services.
Maine also has a use tax on purchases made for use in the state, which is 5%.
For filing forms and instructions, visit the corresponding tax authority.
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Maine Vacation Rental Rules & Regulations
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BaR Harbor
Short-term rentals are allowed in single-family homes, duplexes, and select apartment buildings, provided they are properly registered.
Requirements for Owners and Agents:
- All owners and their agents must register each rental property they own or manage annually with the town of Bar Harbor.
- Properties must pass inspections conducted by the Fire Chief and Code Enforcement Officer to ensure compliance with city regulations.
Registration Process:
- To obtain a registration card, you must submit an application and pay the required fee to the town of Bar Harbor.
- The property’s registration number must be prominently displayed within the rental unit for guests, along with an emergency information sheet.
Portland
Important Regulations:
- Registration Requirements: All short-term rental operators must register their properties annually with the city and pay a fee for each unit. Registration renewals are due by January 1st each year.
- Inspection and Compliance: Every short-term rental must pass an inspection by Portland city inspectors to ensure compliance with building codes and fire safety standards. The city reserves the right to inspect properties at any time and request rental history, transaction data, and upcoming bookings.
- Response Time: Owners and operators must respond to city inquiries within 48 hours to avoid penalties.
- Limits on Rentals: The city limits the number of non-owner-occupied (unhosted) units that can be registered to 400 per year on the mainland. Additionally, property owners may register up to five short-term rentals, with a cap of five living spaces (including bedrooms and separate spaces) that can be rented in any single owner-occupied property.
- Restrictions on Non-Owner-Occupied Properties: Non-owner-occupied condominiums and single-family homes are not eligible for short-term rentals.
- Primary Residence Requirement: Only homes or apartments used as primary residences can be registered as owner-occupied short-term rentals.
- Guest Limits: The maximum occupancy is two guests per bedroom, with one additional space allowed for up to two more guests.
- Rate Increase Limits: A rent control ordinance passed in 2021 applies to short-term rentals, limiting annual rate increases to the inflation rate.
- Advertising Requirements: All short-term rental advertisements must include the city-issued permit registration number. Special limitations apply to multi-unit buildings.
Rockland
Rockland permits short-term rentals for properties with the proper permits in accordance with Rockland Ordinance – Chapter 19, Section 19-309.
Eligible Properties:
- Short-term rentals are allowed in single-family, two-family, and multi-family homes.
- Rentals are not permitted in alternative structures such as trailers, tents, or recreational vehicles.
Application Process:
To operate a short-term rental, you must submit an application to the Rockland Code Enforcement office. A separate application is required for each rental unit.
Fees:
There is an annual fee of $500.00 per short-term rental unit.
Scarborough
- Proposed Regulations: Scarborough is in the process of refining its short-term rental ordinance. Current discussions include mandatory registration, safety inspections, and zoning compliance for all short-term rentals.
Timeline
- July 13, 2023: Ordinance Committee reviewed short term rentals (View recording)
- September 14, 2023: Ordinance Committee reviewed short term rentals (View recording)
- November 2, 2023: Council Corner Live on short term rentals (view details below)
- June 26, 2024: Short Term Rentals Town Council Workshop (View recording)
- September 11, 2024: Draft Short Term Rental Registration ordinance to be presented to the Ordinance Committee
Additional Questions?
For all questions specific to your property, permit/registration, or taxes, consult the appropriate government authority.
Have regulation questions about your municipality? Chat with other VRPOMe members in VRPOMe’s member discussion forums.
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