By Bob Katzen
Senate 14-22, rejected an amendment requiring that 50 percent of the estimated $34.5 million in additional state revenue generated from the short-term rental tax go to the state’s General Fund, 25 percent to education aid for cities and towns and 25 percent in unrestricted local aid to cities and towns.
Amendment supporters said this would ensure that 50 percent of this windfall goes to local communities that desperately need additional funds instead of 100 percent going to the state.
Amendment opponents said the bill already helps cities and towns by allowing them to add their own 6 percent tax to short-term rentals and to keep all the revenue it generates. They said estimates are that this will generate $25.5 million for local communities.