McKee’s Veto of Airbnb Legislation Sparks Response From Shekarchi and Ruggerio

McKee’s Veto of Airbnb Legislation Sparks Response From Shekarchi and Ruggerio

On Thursday, Governor Dan McKee vetoed legislation passed by the Rhode Island General Assembly increasing regulations of short-term rental properties marketed by companies like Airbnb and VRBO.

Rhode Island has been hit by both a murder in Newport and a number of shootings in Providence linked to short-term rental properties.

McKee is his veto letter wrote, “This legislation would require the Department of Business Regulation (DBR) to create and maintain an online registration database for all short-term rental properties that are listed on hosting platforms (STRs). All Rhode Island property owners who rent their property on a short-term basis would be obligated to register with DBR. This registration would be in addition to the existing STR operator registration requirements with the Division of Taxation as well as any city/town registration requirements by local ordinance.”

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“I cannot support this bill because it will create additional burden for property owners. Short-term rental concerns, like other property/land use and small business matters, are most effectively addressed at the municipal level. Our local planning, zoning, and building authorities have the requisite experience and expertise to determine what works (or does not work) for their community. Furthermore, Rhode Island already requires short-term rentals to register with the Division of Taxation, which requirement our neighboring states share, without calling for a second state registration; in both Massachusetts and Connecticut, however, some municipalities also have local registrations and/or restrictions,” McKee added.

In response to the McKee veto, President of the Senate Dominick Ruggerio and Speaker of the HouseJoseph Shekarchi issued a joint statement criticizing McKee's decision

"We are extremely disappointed that the Governor has chosen to veto legislation requiring short-term rental properties to register. It is not asking too much to require the Department of Business Regulation to, in fact, regulate businesses. The responsibility given to DBR under this bill was merely to establish and maintain a list of properties offered for short-term rental. It would be the obligation of the global hosting platforms to ensure their properties are registered with DBR,” stated the leaders in a joint statement.

Shekarchi and Ruggerio added, “The existing procedures through the Division of Taxation are woefully insufficient, and there is no way for municipalities to know which of their properties are being utilized for short-term rentals. Some communities, such as Newport, Narragansett, and Westerly, are being overwhelmed by short-term rentals, without the ability to determine if they are receiving appropriate tax revenue or make corresponding decisions regarding their resources. The Rhode Island League of Cities and Towns supported the legislation precisely because of the incredible burden municipalities are facing from short-term rentals. We will be carefully considering our next steps."