PROVIDENCE — Rhode Island legislative leaders are weighing their options, following a veto by Gov. Daniel J. McKee of legislation that would create a state registry of short-term rentals featured on web platforms, such as Airbnb.
The veto, issued late Thursday, applied to a bill that was sponsored by Sen. Dawn Euer, D-Newport, and supported by legislators whose communities, including Newport and Narragansett, have had many apartments and homes converted into short-term-only rentals, cutting into the stock for residents looking for year-round rentals.
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In his veto message, McKee said he thought municipalities, rather than the state, should expand current regulations. The owners of the short-term rentals are required under existing state law to pay hospitality taxes based on their income from the units.
“It will create additional burden for property owners,” McKee wrote.
Senate President Dominick J. Ruggerio and House Speaker K. Joseph Shekarchi issued a statement Thursday night, expressing disappointment.
“It is not too much to require the Department of Business Regulation to, in fact, regulate businesses,” they said. “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.”
The leaders said they are carefully considering next steps. They have not determined if this would involve an attempt to override the veto or to introduce modified legislation, according to a spokesman for Ruggerio.
Mary MacDonald is a staff writer for PBN. Contact her at macdonald@pbn.com.
