Overview: Are Short-Term Rentals Allowed in Eastport, ME?

Short-term rentals are permitted in Eastport in principle, but there is no city-specific short‑term rental ordinance. Eastport’s Zoning Ordinance allows lodging uses (hotels, motels, “other lodging places,” bed & breakfasts, rooming/boarding/lodging houses) in certain districts (notably the B1 Downtown Business District as a permitted use; other districts may permit similar lodging under “special exception”). Operating as a “home occupation” in a residential district is possible, provided you meet home‑occupation standards (no exterior alterations, no outside display of goods, limited floor area, limited employees, etc.).

Currently, there is no citywide cap on the percentage of houses that can be short‑term rented. However, local citizens have proposed: registering STRs as DBA (doing business as), taxing/assessing STRs as commercial properties, establishing a cap, applying zoning restrictions to prevent commercial lodging in residential neighborhoods, and creating a dedicated STR ordinance. None of these proposals have been adopted as of the latest city materials provided.

Bottom line: Proceed by using one of the established land-use pathways allowed under Eastport zoning—either as a lodging use (in an appropriate district) or as a home occupation (in a residential district)—and comply with all state lodging tax, sales tax, and any health/safety code requirements.

Source: City of Eastport Zoning Ordinance (Mar 9, 2022); Proposed AirBnB Regulations (citizen concerns and suggestions) [links below].

How to Start an STR Business in Eastport: Step-by-Step

1. Due diligence and zoning feasibility

• Identify a property and confirm the zoning district on the official Zoning Map (at City Hall and with the Code Enforcement Officer).
• Decide your operating model:
  • Lodging business (hotel/motel/inn/B&B/rooming house) in a district where lodging is allowed (e.g., B1).
  • Home occupation in a residential district (R1/R2/RR) if you can meet home‑occupation standards.
• Check shoreland and floodplain overlays. Shoreland zone includes land within 250 feet of great ponds, rivers, coastal wetlands, and certain streams; 75 feet for streams. Special permits and performance standards may apply.
• If in a Local Historic District (HDD overlay), you will need a Certificate of Appropriateness from the Historic Review Board for exterior changes visible from a public street.

2. Licensing, registrations, and tax setup (state and local)

• Register your business and obtain a Maine sales tax permit (e.g., “lodging provider” certificate). State law requires the collection and remittance of Maine’s Lodging Property Tax and Sales Tax on room rentals.
• Register a DBA (Doing Business As) with the City Clerk.
• Set up accounts with the Maine Revenue Services (MRS) for lodging and sales tax filings.
• Confirm property tax status with the Assessor. While residential property is typically taxed at a lower rate, the city has discussed assessing STRs as commercial; this depends on the use and classification.

3. Permitting and approvals

• Building Permit/Use Approval: Submit plans and application to the Code Enforcement Officer (CEO). The CEO acts on applications within seven days for permitted uses. If denied, you may appeal to the Board of Appeals.
• Special Exception: If your intended lodging use is listed as a “special exception” in the chosen district, file for a special exception permit with the Board of Appeals (residential districts often route through this path).
• Site Plan Approval: Multi‑unit dwellings (three or more units) and certain special exceptions may require approval by the Planning Board.
• Historic Review: If in an HDD overlay and your property has exterior alterations visible from a public street (signs, changes to windows/doors, façade work), obtain a Certificate of Appropriateness from the Historic Review Board.
• Shoreland/Floodplain: For properties in the shoreland zone or flood zone, consult Shoreland Zoning Ordinance provisions and Flood Zone Ordinance requirements; permits may be required from the Planning Board.

4. Operations and compliance

• Occupancy and life safety: Comply with Maine laws governing lodging establishments (smoke detectors, fire safety, posted emergency information).
• Parking and neighborhood impacts: Address noise, parking, trash management, and lighting to meet performance standards.
• Taxes and records: Collect and remit Maine lodging and sales taxes; maintain records for municipal/state audits.
• Signage and exterior: Align any signage with the district’s rules and, if historic, with the Board’s standards.

5. Ongoing obligations

• Renew any city permits, if required.
• Monitor legislative updates; Eastport may enact future STR-specific requirements.

Source: Zoning Ordinance, Article 7 (Administration) and district provisions.

Required Documents, Permits, Licenses, and Guidelines

At the City/Local level

• Building Permit application and plans (submit to the Code Enforcement Officer).
• Use determination or administrative interpretation (confirm whether your use is a permitted use or special exception in the subject district).
• Special Exception Permit application (if required by district) – filed with the Board of Appeals.
• Site Plan Approval (for multi‑unit dwellings and certain special exceptions) – Planning Board review.
• Certificate of Appropriateness (if in a Local Historic District) – Historic Review Board.
• DBA (Doing Business As) registration – City Clerk.
• Sales and lodging tax registration – Maine Revenue Services (state).

Maine State (applies statewide)

• Maine Lodging Property Tax registration and monthly/quarterly filings (MRS).
• Maine Sales Tax registration and filings (MRS) – lodging sales are subject to sales tax.
• Health and safety requirements for lodging establishments under Maine law (e.g., fire safety, posted information).

Performance standards

• Adhere to Article 7 performance standards for your district (noise, odors, glare, waste, etc.). Consider parking, traffic, and neighborhood compatibility.

Shoreland/Floodplain

• If in the Shoreland Zone (250 feet from certain waters; 75 feet from certain streams), additional standards apply (setbacks, vegetation, clearing, etc.). Consult Shoreland Zoning Ordinance and Flood Zone Ordinance.
• Shoreland/Flood permits may be needed via the Planning Board.

Permitting pathway (summary)

• Confirm district zoning and overlays with the CEO (City Hall).
• If “permitted use,” submit a building/use permit; CEO acts within seven days.
• If “special exception,” apply to Board of Appeals.
• For multi‑unit dwellings or certain lodging uses, Planning Board site plan review may be required.
• If in the Historic District (HDD overlay), secure a Certificate of Appropriateness for any exterior changes visible from the street.

Specific Regulations for Short-Term Rentals (City, County/Region, and State)

City of Eastport (zoning framework; no specific STR ordinance as of 3/9/2022)

• Allowed models:
  • Lodging places (hotels, motels, “other lodging places,” B&B, rooming/boarding/lodging houses) – permitted in B1; other districts may allow as special exception.
  • Home occupation – allowed accessory to residential use if fully compliant with standards (see below).
• Historic District (HDD overlay):
  • Certificate of Appropriateness required for exterior changes, new construction, signs visible from a public street/walkway, demolition, or moving of historic structures.
  • Review conducted by the Historic Review Board; standards emphasize compatibility with historic character.
• Shoreland/Flood:
  • Shoreland Zone includes 250 feet from great ponds/rivers/coastal wetlands; 75 feet from certain streams; additional standards apply.
  • Flood Zone Ordinance applies; development and reconstruction must comply; permit requirements may be routed to Planning Board.
• Performance standards and administration:
  • Article 7 outlines performance standards and permitting procedures (building permit timing, special exception, board roles).
• No cap on STR share adopted; citizen proposals include:
  • Register STRs as DBA.
  • Assess/tax STRs as commercial.
  • Establish a cap on the share of STRs citywide.
  • Enforce zoning so commercial lodging does not locate where disallowed.
  • Draft a dedicated STR ordinance.

County/Region (Washington County)

• The provided city and zoning materials do not include county-level STR rules. As a practical matter, most county-level inputs are advisory; city zoning and state law govern. Investors should verify any county public health or fire inspection requirements for lodging establishments.

State of Maine (key requirements affecting STRs statewide)

• Lodging Property Tax (M.R.S. Title 36, Chapter 703): Applies to short-term lodging; register with MRS and remit taxes due on a recurring filing schedule.
• Sales Tax on lodging: Maine generally imposes sales tax on the rent for lodging; providers must register, collect, and remit to MRS.
• Local lodging rules: Municipalities may adopt additional requirements (which Eastport has not done yet).
• Health and safety: Maine lodging law requires compliance with relevant building/fire/life safety standards; follow state guidance on occupancy and safety equipment.

Note on property tax classification

• Eastport has discussed assessing STRs as commercial properties; any change would affect tax rates. The current status requires case-by-case confirmation with the Assessor depending on the use and classification.

Contact Information (Local Authority in Charge of STRs/Planning/Zoning)

For zoning, building permits, shoreland, and land use questions

• Code Enforcement Officer (CEO)
  • Location: Eastport City Hall
  • Note: CEO administers building permits; acts on permitted uses within seven days; may interpret zoning; refers special exceptions to the Board of Appeals.

For special exceptions, variances, and Board of Appeals

• Zoning Board of Appeals
  • Receives applications for special exceptions and hears appeals of administrative decisions.
  • Location: Eastport City Hall (Board meets as needed)

For site plan review and shoreland/flood permits

• Planning Board
  • Reviews site plans for multi‑unit dwellings and certain special exceptions; issues shoreland/flood permits when required.
  • Location: Eastport City Hall

For Historic District (HDD) and Certificates of Appropriateness

• Historic Review Board
  • Reviews alterations, new construction, signs, demolition, and moving of historic properties visible from public streets.
  • Location: Eastport City Hall

For business registration, DBA, and general city inquiries

• City Clerk
  • Location: Eastport City Hall

For property tax assessment

• Assessor’s Office
  • Location: Eastport City Hall
  • Note: Confirm whether your STR will be classified residential or commercial.

State of Maine

• Maine Revenue Services (MRS)
  • Register for sales and lodging tax; filing guidance and forms.

Links to Source Pages and Documents (As Provided)

• Eastport Proposed AirBnB Regulations (citizen concerns and suggestions): www.eastport-me.gov/sites/g/files/vyhlif536/f/agendas/proposed_airbnb.pdf
• City of Eastport Zoning Ordinance (Mar 9, 2022): www.eastport-me.gov/sites/g/files/vyhlif536/f/pages/zoning_ordinances_03.09.2022_0.pdf

Practical Takeaways for STR Investors

• Confirm that your planned STR fits either a permitted lodging use in an allowed district (e.g., B1) or qualifies as a home occupation in a residential district. If it does not, seek a special exception.
• Obtain state lodging/sales tax registrations; file and remit faithfully.
• In shoreland or flood zones, plan for additional setbacks, vegetation, and permit requirements.
• In the Historic District, design exterior changes and signage to meet the Board’s compatibility standards; secure a Certificate of Appropriateness early.
• As of the current materials, Eastport has not adopted a cap on STRs or a formal STR ordinance, but proposals are on the table. Monitor City Council and Planning Board meetings for updates.