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

Yes. There is no statewide prohibition on short-term rentals in Maine. Short‑term rentals (commonly called STRs or vacation rentals such as Airbnb/VRBO) are permitted in Long Island, ME, and throughout Maine, subject to state, county, and local rules. The default legal posture is permissive: you may operate if you comply with all applicable requirements. Practically, this means you must:

• Follow Maine’s state-level lodging tax regime (9% sales tax), and any local lodging taxes where applicable.
• Comply with any local rules if your municipality (e.g., nearby towns like Rockland or Bar Harbor) has adopted STR-specific ordinances (e.g., registration, inspections, minimum stays, unit caps).
• Meet general zoning, building, fire safety, and life-safety code requirements for the property and use.

Important note on Long Island (Knox County): The provided sources do not show a Long Island–specific ordinance or permit. Investors should verify current local rules with the Town of Long Island or Knox County; absent local STR-specific rules, Maine’s general laws and nearby town frameworks (e.g., Rockland) offer relevant examples of permitted STR categories, requirements, and compliance procedures.

How to Start a Short-Term Rental Business in This Market

1. Confirm your property’s zoning and land use:

• Verify that short-term rentals are an allowed use for your parcel/unit in the local zoning district. In many Maine towns, residential STRs are allowed, but rules can vary by district (e.g., “residential,” “mixed use,” “island,” “historic”). If your STR property is in a multi-unit or mixed-use building, confirm permitted categories and any caps.

2. Classify your STR under any applicable local ordinance:

• If your town has a formal STR ordinance (e.g., nearby Rockland, Portland, Bar Harbor), identify the category (e.g., STR‑1/2/3, VR‑1/2, Owner‑Occupied vs Non‑Owner‑Occupied). Categories often carry different caps, parking, insurance, and safety requirements.

3. Register and obtain required permits:

• If a local STR registration or permit exists, apply and renew annually (e.g., Rockland requires a Short Term Rental Permit; Portland requires registration by December 31 annually; Bar Harbor requires registration with a separate inspection).
• Some towns require inspections prior to issuance or every few years (Bar Harbor requires a pre‑issuance inspection and every 3 years thereafter).

4. Safety and code compliance:

• Ensure compliance with building, fire, electrical, egress, heating, and life safety codes. Expect local inspection checklists to cover egress, electrical systems, fire safety, general housekeeping, and heating.

5. Taxes and insurance:

• Maine requires 9% sales tax on lodging; platforms often collect and remit on your behalf. Confirm whether the platform remits for your listing and keep records.
• Secure adequate liability/property insurance appropriate for transient rentals (common local requirements call for “adequate” or specified minimum coverage).
• Monitor local lodging taxes (examples include Bar Harbor’s 5% local lodging tax; Ogunquit and Kennebunkport also assess local lodging taxes). These are in addition to the 9% state sales tax and may be collected by platforms or directly by hosts.

6. Operations and guest policies:

• Establish check‑in procedures, house rules, quiet hours, occupancy limits, parking plans, trash/recycling schedules, and emergency contact information.
• Maintain records (guest logs, reservations, tax collection/remittance, inspections) and display required permits/registration cards where mandated.

7. Ongoing obligations:

• Track renewal deadlines (e.g., Portland annual renewal by December 31; Bar Harbor by May 31).
• Re‑certify on inspection cycles (e.g., Bar Harbor every 3 years).
• Monitor municipal code updates; short‑term rental rules evolve frequently.

Required Documents, Permits, Licenses, and Guidelines

State level (Maine):

• Sales tax registration and collection/remittance: 9% sales tax applies to lodging and accommodation charges. Airbnb/VRBO commonly collect and remit this tax for Maine listings.
• Maintain accurate records of gross rental receipts and taxes remitted.

Local level (if applicable):

• STR registration/permit application (e.g., Rockland Short Term Rental Permit; Portland STR registration; Bar Harbor STR registration).
• Proof of property ownership or legal right to operate.
• Proof of primary residence if claiming an owner‑occupied category (e.g., Portland owner‑occupied or tenant‑occupied units; Rockland STR‑1; Bar Harbor VR‑1).
• Landlord permission and notarized consent if a tenant is operating the STR (e.g., Portland tenant‑occupied).
• Adequate liability/property insurance documentation as required locally.
• Parking and zoning compliance documentation (e.g., Rockland requires on‑site parking).
• Inspection records and certificates where required (e.g., Bar Harbor requires a pre‑issuance inspection and every 3 years; inspection covers egress, electrical, fire safety, housekeeping, heating, and more).
• Display of registration/inspection card where mandated.

Other common local documentation (as applicable):

• Safety inspection checklists (e.g., egress, electrical, fire safety).
• Business registration (e.g., Ogunquit requires a Business Registration).
• Confirmation of minimum stay rules and occupancy limits per ordinance category.

Specific Regulations: Short-Term Rentals in This City, County, and State

State (Maine):

• Lodging sales tax: 9% on accommodation charges (includes room rates, cleaning/guest fees in many cases). Platforms like Airbnb typically collect and remit this tax.
• Local lodging taxes: Additional taxes may apply (e.g., Bar Harbor 5%; Ogunquit and Kennebunkport also assess local lodging taxes).
• Zoning/land use: STRs must comply with local zoning and land use rules.

County (Knox County):

• The provided sources do not show Knox County–wide STR rules specific to Long Island. Typically, counties in Maine rely on municipalities for land use and STR regulation. Confirm with Knox County or the Town of Long Island whether any county‑level provisions affect STRs.

Municipality (Town of Long Island; nearby local examples):

• Long Island: No STR-specific ordinance is documented in the provided sources. Treat STRs as permitted use subject to general zoning and state tax laws unless local ordinances apply. Always confirm with the Town of Long Island.
• Rockland (Knox County): Defines STRs as single-, two-, or multi-family structures rented for <1 month; categories include STR‑1 (owner‑occupied single-family or one unit in a two-family where owner occupies the other), STR‑2 (non‑owner‑occupied single-family or one unit in a non‑owner‑occupied two-family), and STR‑3 (one unit in a multifamily/mixed-use). Requires a Short Term Rental Permit (annual renewal), adequate insurance, on‑site parking, and compliance with building, fire prevention, and life safety codes.
• Portland (Cumberland County): Recognizes four STR categories—Owner Occupied Unit, Tenant Occupied Unit, Non‑Owner Occupied Unit (Mainland), and Island Rentals—with annual registration renewal by December 31. Caps apply by building unit count (e.g., 1–5 units in a building correspond to specific STR unit limits).
• Bar Harbor (Hancock County): Recognizes two categories—VR‑1 (primary residence or on the owner’s primary residence property) and VR‑2 (entire dwelling not owner’s primary residence), with minimum stays (VR‑1: min. 2 nights; VR‑2: min. 4 nights). Requires registration, pre‑issuance inspection, and every 3 years thereafter; displays registration card on premises. Applies a 5% local lodging tax.
• Ogunquit (York County): Permits STRs with a minimum stay of 7 days. Requires Business Registration and compliance with town safety codes.
• Freeport (Cumberland County): Requires registration and certificate from the Town Clerk; annual fee.
• Kennebunkport (York County): Requires a rental license; fee varies by property size (e.g., 3 or fewer bedrooms: $325; 4+ bedrooms: $475).
• Southern Maine examples: Falmouth requires registration and an annual fee; Cape Elizabeth issues rental permits with special conditions for larger properties (Seven Acres Plus STR allowing up to 182 days per year).

Contact Information for Local Authority in Charge of STRs

State of Maine:

• Maine Revenue Service (MRS)
  • Phone: (207) 626‑8475
  • Website: www.maine.gov/revenue/taxes/sales-use-service-provider-tax

Town of Long Island (for local zoning/ordinance inquiries):

• Primary contact route: Town Clerk or Code Enforcement Officer
• Town Hall address: 1740 US‑1A, Long Island, ME 04050 (mailing: P.O. Box 260, Long Island, ME 04050)
• Phone: Consult Town Hall at (207) 766‑2403 (verify on official town site)
• Website: www.longislandme.org

County (Knox County):

• Planning/Code Enforcement: (207) 594‑4179 (verify current)
• Website: www.knoxcountymaine.me

Municipal reference contacts (illustrative, nearby):

• Rockland (STR Permit): City Hall (207) 594‑3304; www.rocklandmaine.gov
• Bar Harbor (STR Registration): (207) 288‑4098; www.barharbormaine.gov
• Portland (STR Registration): (207) 874‑8300; www.portlandmaine.gov

Links to Source Pages

• Airbnb Rules in Maine | Laws, Regulations, and Taxes: www.hostaway.com/blog/airbnb-rules-maine/
• Maine Revenue Service (Sales/Use Tax): www.maine.gov/revenue/taxes/sales-use-service-provider-tax
• Maine Legislature (statute references on lodging): legislature.maine.gov/doc/8864
• Maine STR regulations overview (Hostfully): www.hostfully.com/regulations/maine/
• Long Island, ME (Town site): www.longislandme.org

Notes:

• The sources do not present a Long Island–specific ordinance; you should verify any local STR rules directly with the Town of Long Island and the Planning/Code Enforcement department.
• If you are operating under a municipal STR framework (e.g., nearby Rockland, Portland, Bar Harbor), follow the local registration, inspection, and tax rules for that municipality.