Nantucket, Mass., Code of Bylaws ch 123 § 123-3

[Amended 5-7-2024 ATM by Art. 60 , approved 9-27-2024; 9-17-2024 STM by Art. 5 , approved 12-13-2024] A. No person or other legal entity shall operate a short-term rental without having first obtained a certificate of registration from the Board of Health. An application for a certificate of registration shall be on a form provided by the Town and shall contain the Department of Revenue identification number or proof of exemption under G.L. c. 64G . The operator shall provide with the application a certificate of registration issued by the Department of Revenue in accordance with § 67 of Chapter 62C of the General Laws. B. The annual fee for such certificate of registration shall be set forth in the regulations issued pursuant to § 123-4 . C. The application for the certificate of registration shall include an attestation that the owner and/or operator is in compliance with all applicable federal, state and local laws, including but not limited to G.L. c. 64G and the Fair Housing Act, G.L. c. 151B , and local equivalents and regulations related thereto, and all other regulations applicable to residential dwellings, and that the owner and/or operator of the property is current with all Town taxes, water, and sewage charges and other fees, subject to the requirements of Chapter 19 , §§ 19-13 through 19-18 , of the Town Code. Any property offered for a short-term rental shall not have any outstanding building, sanitary, zoning, or fire code violations, orders of abatement, or stop-work orders. Nothing contained herein shall relieve the owner or operator from complying with all local permits, rules and regulations issued by the Board of Health and other Town boards generally applicable to resident dwelling units. D. The Board of Health shall not issue any certificate of registration unless the operator has: (1) Submitted a complete application and paid all associated fees; (2) Provided contact information for the operator and persons designated to address any issues at the short-term rental within two hours' notice; and (3) Provided the Town with a certificate of insurance evidencing liability insurance coverage for the short-term rental in an amount to be determined by the regulations issued pursuant to § 123-4 . E. Operators are subject to inspection of the short-term rental by the Board of Health upon reasonable notice via consent or administrative warrant, or without such notice in the event of an imminent threat to public health or safety. F. Certificates of registration are valid for one year and may be renewed at the discretion of the Town, provided that the operator has complied with the provisions of this chapter and any associated regulations during the preceding year. An application for renewal of a certificate of registration shall be submitted along with the annual fee no later than November 1 of the next year. A renewal application shall include an attestation that the short-term rental was operated in accordance with all bylaws and regulations of the Town during the previous year. G. The certificate of registration is issued to the operator and does not run with the land. If the short-term rental is sold or transferred out of ownership, a new application for a certificate of registration shall be filed by the new operator before short-term rentals can continue or resume. H. Short-term rentals are prohibited in dwelling units owned by a corporation, partnership, real estate investment trust, or any similar entity which pools funds from investors and is engaged primarily in investment activity. I. Short-term rentals are prohibited in dwelling units designated as affordable or otherwise income-restricted, which are subject to an affordability restriction or are otherwise subject to housing or rental assistance under local, state, or federal programs or law. J. No time-sharing or time-interval-ownership dwelling unit or units may engage in short-term rental activities or be eligible to receive a certificate of registration for such unit; except that this section shall not apply to the creation of mortgages, liens, easements or other similar interests encumbering the residential property as a whole to secure a loan or for any other legitimate purposes; and this section shall not apply to natural persons or noncommercial groups, such as families, partnerships, associations, or trusts with divided interests or agreements in which the real estate is held and transferred within the family, partnership, association or trust, as opposed to sold on the open market. In addition, time-share or time-interval ownership dwelling units shall be exempt from Subsections H , I , J , and K , provided that the owner obtains a certificate of registration and provides sufficient evidence that the unit was rented to one or more third parties for at least one period of less than 30 days prior to January 1, 2024. K. Any person or other legal entity, except corporations, but including LLCs, trusts, and S corporations, which paid the rooms excise tax on a short-term rental dwelling unit in any calendar quarter prior to January 1, 2024, and which owned the property prior to May 7, 2024, shall be exempt from the requirements of Subsections H , I , and J of this section until the dwelling unit is transferred or conveyed, or the rental certificate is not renewed or is revoked by the Board of Health. If a property is bequeathed to a person or other beneficiary through a will, trust, or other instrument, the new owner may continue to engage in short-term rental activities in accordance with this section.