OVERVIEW: ARE SHORT-TERM RENTALS ALLOWED IN NANTUCKET, MA?

Yes, short-term rentals are currently allowed and operating on Nantucket, but the regulatory environment remains complex and evolving. Nantucket operates under state home rule authority and has implemented its own registration and regulatory framework for STRs through Chapter 123 of the Town Code and Chapter 338 of Town Regulations. However, zoning compliance remains a critical legal uncertainty following a 2025 Massachusetts Land Court ruling that found STRs may violate existing zoning code provisions. Despite this uncertainty, the town continues to process STR registrations and enforce its registration requirements while working toward a zoning solution.

HOW TO START A SHORT-TERM RENTAL BUSINESS IN NANTUCKET

Step 1: Property Assessment and Compliance Verification

Before registering, verify that your property meets all local zoning requirements. Given the current legal uncertainty following the Ward v. Nantucket Zoning Board of Appeals case, consult with local zoning authorities to confirm STR use is permitted on your specific property.

Step 2: State Registration Process

1. Register with Massachusetts Department of Revenue through MassTaxConnect - This is a one-time registration to establish tax collection capabilities
2. Obtain Massachusetts Short-Term Rental Certificate - Required for all STR operations in Massachusetts
3. Set up tax collection systems - Implement methods to collect applicable occupancy taxes

Step 3: Local Registration with Nantucket

1. Access the GovOS Registration Portal at nantucket-ma.munirevs.com/
2. Apply for Short-Term Rental Certificate by October 31st for the following year
3. Pay registration fees and upload required documentation
4. Complete annual renewal between September 1 - October 31st each year

Step 4: Operational Setup

1. Display certificates prominently within rental units
2. Create renter handbook including local bylaws and emergency information
3. Implement tax collection and remittance systems
4. Maintain compliance documentation and insurance coverage

REQUIRED DOCUMENTS, PERMITS, LICENSES, AND GUIDELINES

Required Permits and Certificates:

• Nantucket Short-Term Rental Registration Certificate ($250 annual fee)
• Massachusetts Department of Revenue STR Registration
• Liability Insurance Documentation - Minimum $1,000,000 coverage required

Required Documentation:

• Proof of Liability Insurance - Evidence of $1,000,000 minimum coverage
• Property Ownership Documentation
• Tax Registration Information - MassTaxConnect registration details
• Emergency Contact Information - For posting within units
• Local Bylaws Compliance Attestation - Annual certification required

Advertising Requirements:

• Both Massachusetts and Nantucket Certificate Numbers must be included in all advertising
• Certificate Display - Must be visible in conspicuous location within rental units
• Renter's Handbook - Must include local bylaws and emergency information

Insurance Requirements:

• Minimum Liability Coverage: $1,000,000
• Insurance can be carried by online platforms on behalf of operators
• Real estate agencies do not provide required coverage - property owners must secure their own insurance

SPECIFIC REGULATIONS FOR SHORT-TERM RENTALS

Nantucket Town Regulations (Chapter 338 & Chapter 123):

Definitions and Eligibility:

• STR defined as dwelling unit rented for 31 consecutive days or less
• Rentals exceeding 31 days or totaling 14 days or less annually are exempt from registration
• Each dwelling unit requires separate registration certificate
• No business certificate required beyond STR operator certificate

Operating Requirements:

• Certificate Display: Must be posted conspicuously within unit at all times
• Emergency Information: Must be posted alongside certificates
• Advertising Compliance: Both state and local certificate numbers required in all advertising
• Annual Renewal: Required by November 1st each year for following year operation

Fee Structure (Effective October 1, 2024):

• Nantucket Registration Fee: $250 per certificate
• State Room Occupancy Excise: 5.70%
• Local Room Occupancy Excise: 6.00%
• Community Impact Fee: 3.00%

Registration Timeline:

• New Registrations: Must be submitted by October 31st for following year operation
• Renewals: September 1 - October 31st annually
• 2024 Registrations: Extended through October 31, 2025 without additional fee

Community Impact Fee Requirements:

Applies to STRs meeting ALL criteria:

• Two or more units in same municipality
• Same operator for all units
• NOT located in owner-occupied single-family, 2-family, or 3-family dwelling
• Collected by Massachusetts Department of Revenue
• Rate: 3% on transfer of occupancy

Zoning Compliance Status:

CRITICAL: Following the 2025 Land Court ruling in Ward v. Nantucket Zoning Board of Appeals:

• Zoning status remains uncertain - STRs may violate existing zoning code
• Enforcement paused while appeal is pending
• Registration continues under existing town regulations
• Special Town Meeting scheduled to address zoning issues
• Property-specific compliance verification recommended before operation

Massachusetts State Regulations:

• Room Occupancy Excise Tax: 5.70% state rate
• Local Room Occupancy Excise: Up to 6.00% local rate
• Tax Collection and Remittance: Required through MassTaxConnect
• Platform Collection: Airbnb and VRBO collect and remit on behalf of operators
• Registration Definition: M.G.L. c. 64G applies to all Massachusetts STRs

CONTACT INFORMATION FOR LOCAL AUTHORITIES

Town of Nantucket - Primary Contacts:

Main Town Line:

• Phone: 508-228-7200
• Address: 16 Broad Street, Nantucket, MA 02554

Short-Term Rental Community Liaison:

• Name: Lauri Elliott
• Email: lelliott@nantucket-ma.gov

Registration System Support (GovOS):

• Phone: (888) 751-1911
• Hours: Monday through Friday, 8:30 AM to 5:00 PM
• Email: blt.str.support@govos.com
• Complaint Hotline: 508-315-6372

Registration Portal:

• Website: nantucket-ma.munirevs.com/
• Portal Provider: GovOS

Massachusetts Department of Revenue:

• Tax Registration: MassTaxConnect
• Website: mass.gov/info-details/room-occupancy-excise-tax

Online Resources:

• STR Email List Subscription: nantucket-ma.us8.list-manage.com/subscribe?u=bc2c42bcb6cc04d8937a4da58&id=257011d3fa
• Town Assessor Records: Available through town website for property verification

LINKS TO SOURCE PAGES

Official Town Resources:

1. Nantucket STR Registration Portal: nantucket-ma.munirevs.com/
2. Town STR Main Page: www.nantucket-ma.gov/2673/Short-term-Rentals
3. STR FAQs: www.nantucket-ma.gov/3337/FAQs
4. Local Regulations: www.nantucket-ma.gov/3117/Local-Regulations
5. Town Code Chapter 123 (STR Bylaw): ecode360.com/41501992
6. Regulations Chapter 338: ecode360.com/39942148

State Resources:

1. Massachusetts Room Occupancy Excise Tax: www.mass.gov/info-details/room-occupancy-excise-tax
2. MassTaxConnect: Available through mass.gov

News and Updates:

1. Fisher Real Estate STR Update (May 2025): fishernantucket.com/short-term-rentals-nantucket-may-2025/
2. Nantucket Current STR Coverage: nantucketcurrent.com/news/latest-short-term-rentals-proposals-coming-into-focus-for-november-special-town-meeting

Support Resources:

1. STR Email List: nantucket-ma.us8.list-manage.com/subscribe?u=bc2c42bcb6cc04d8937a4da58&id=257011d3fa
2. Contact Form: nantucket-ma.gov/formcenter/contact-us-6/we-value-your-input-47
3. GovOS Support Portal: Available through registration system

IMPORTANT INVESTMENT CONSIDERATIONS:

1. Zoning Legal Uncertainty: The pending Land Court appeal creates ongoing compliance risk that could affect STR operations
2. Regulatory Evolution: Town is actively working toward comprehensive zoning solution through Special Town Meeting process
3. Registration Maintenance: Annual renewal requirements and ongoing compliance monitoring
4. Tax Compliance: Multi-layered tax obligations requiring careful management and record-keeping
5. Insurance Requirements: Enhanced coverage requirements beyond typical rental property insurance

RECOMMENDATION: Given the current regulatory uncertainty, prospective STR investors should conduct thorough due diligence regarding zoning compliance and consider consulting with local legal counsel specializing in Nantucket land use regulations before proceeding with property acquisition or STR registration.