(Based exclusively on the documents you supplied – no external links were accessed.)

1. Overview – Are Short‑Term Rentals Allowed in Montgomery, VT?

Answer: Yes – STRs are permitted, but they are tightly regulated.

• The Town of Montgomery has adopted a Short‑Term Rental Ordinance (effective Oct 2022) that expressly authorizes STRs subject to registration, zoning, safety, and tax requirements.
• The ordinance is designated civil (enforced by the municipality, not criminally).
• STRs are only allowed as conditional uses in three zoning districts: Village 1, Village 2, and Rural/Residential. They are prohibited in Conservation 1 and Conservation 2.
• The state’s enabling statute (24 V.S.A. § 2291(29)) expressly gives municipalities the power to regulate short‑term rentals, which Montgomery has exercised.

2. How to Start a Short‑Term‑Rental Business in Montgomery

| Step | What You Must Do | Why It Matters | Key References | |------|------------------|----------------|----------------| | 1. Confirm Zoning Eligibility | Verify that the property lies within Village 1, Village 2, or Rural/Residential zoning districts. STRs are prohibited in Conservation 1 & 2. | The zoning classification determines whether you can even apply for a permit. | Montgomery Zoning Regulations (Nov 2018) – District maps & Table 4(A) | | 2. Obtain Zoning & Conditional‑Use Approval | If the parcel is in a conditional‑use district, submit a Conditional‑Use Application to the Development Review Board (DRB) and receive approval before any registration. | Conditional‑use approval is a prerequisite to the STR registration; the DRB decides if the use meets all standards. | Zoning Regs §§ 5.1, 2.4 | | 3. Register the STR Unit | Complete a Separate STR Registration Application (fee: $100 – partial home; $250 – entire home). Registrations run July 1 – August 31 and must be renewed by July 15 each year. | Registration is mandatory for every STR unit; without it you cannot advertise or rent. | STR Ordinance §§ 2‑3 | | 4. Meet Safety & Health Requirements | • Occupancy > 8 guests → state Division of Fire Safety inspection & occupancy approval. <br>• Occupancy ≤ 8 guests → complete the “Short‑Term Rental Safety, Health and Financial Obligations” form (post inside the unit) and certify compliance. | Ensures guests’ safety and satisfies state fire‑code obligations. | STR Ordinance §§ 5‑6; VT Division of Fire Safety – STR checklist | | 5. Secure Insurance | Provide proof of insurance coverage specific to short‑term vacation rentals. | Protects the owner, guests, and the town from liability. | STR Ordinance § 7 | | 6. Appoint an Emergency Contact | Designate a local emergency contact (must be within 25 mi of the unit). Post the contact name & phone number inside the STR and submit the info to the Constable, Town Clerk, and Fire Department. | Guarantees rapid response to emergencies and compliance inspections. | STR Ordinance § 8 | | 7. Collect Vermont’s Rooms & Meals Tax | Register with the Vermont Department of Taxes, obtain a Meals & Rooms Tax License, and collect the 9 % Rooms & Meals Tax from guests; remit it to the state. | State law requires tax collection on all short‑term rentals. | Summer.com “STR Regulations” summary (state‑level requirement) | | 8. Keep Records & Renew | Maintain all documentation, post the STR‑safety form, and renew the registration by July 15 each year. | Ongoing compliance avoids fines and possible revocation. | STR Ordinance §§ 2‑3 |

3. Required Documents, Permits, Licenses & Guidelines

| Requirement | Issuing Authority | Typical Form / Document | Renewal / Frequency | |------------|-------------------|--------------------------|----------------------| | Zoning Permit (if any structural changes) | Zoning Administrator (ZA) | Montgomery Zoning Permit Application | Only when construction/alterations occur | | Conditional‑Use Approval | Development Review Board (DRB) | Conditional‑Use Application (with site plan, narrative) | Permanent unless use changes | | STR Registration | Town of Montgomery (Selectboard/Compliance Officer) | STR Registration Application (fee $100‑$250) | Annual – July 1 – Aug 31; renew by July 15 | | Fire‑Safety Inspection (≥ 9 guests) | Vermont Division of Fire Safety | Fire‑Safety Inspection Report (occupancy approved) | As needed (re‑inspection if layout changes) | | Safety, Health & Financial Obligations Form | Vermont Division of Fire Safety (posted in unit) | “Short‑Term Rental Safety, Health and Financial Obligations” checklist | Must be posted and kept current | | Insurance Declaration | Private insurer | Certificate of Insurance (specific to STR) | Annually (or per policy term) | | Emergency Contact Designation | Town of Montgomery | Contact Info Sheet (name, phone, 25‑mi radius) | Keep current; update if contact changes | | Meals & Rooms Tax License | Vermont Department of Taxes | Application for Meals & Rooms Tax (Form M‑R) | License is permanent; tax remitted monthly/quarterly | | Rooms & Meals Tax Collection | N/A (owner‑collected) | Guest invoice & tax receipt | Ongoing per booking |

All documents must be retained for at least the duration of the registration year and be available for inspection by the town’s STR Compliance Officer.

4. Specific Regulations – Municipal, County & State

4.1 Town of Montgomery (Municipal)

| Topic | Key Rules | Enforcement / Penalties | |-------|-----------|--------------------------| | Zoning Districts | STRs allowed only in Village 1, Village 2, Rural/Residential (conditional use). Prohibited in Conservation 1 & 2. | Zoning enforcement under 24 V.S.A. § 4451‑4452; violations can lead to $200 per day civil penalties. | | Registration | $100 (partial‑home) / $250 (entire‑home) fee. Annual term July 1‑Aug 31; renewal deadline July 15. | Civil fines up to $800 per violation (24 V.S.A. § 2291(14)); each day of continued advertising/rental is a separate violation. | | Occupancy | 2 occupants per approved bedroom + 2 extra. Approved bedrooms = number on state Wastewater/Water Supply Permit, Town Zoning Permit, or Listers Card. | Fire‑Safety inspection required for > 8 guests; otherwise self‑certification. | | Safety & Health | Must post the VT Division of Fire Safety “STR Safety, Health & Financial Obligations” form inside the unit. | Failure to post or maintain the form constitutes a violation. | | Insurance | Proof of STR‑specific insurance required. | Lack of insurance can trigger civil enforcement. | | Emergency Contact | Must be within 25 mi of the unit; name & phone posted in the STR and supplied to Constable, Town Clerk, Fire Dept. | Failure to maintain an emergency contact is a violation. | | Compliance Officer | The Selectboard appoints an STR Compliance Officer (may hold another town position except Selectboard member). | Officer monitors compliance; can recommend revocation after due‑process hearing. | | Revocation | If multiple violations are found and the unit cannot be brought into compliance, the Selectboard may revoke the STR permit after a hearing. | Revocation stops all advertising and rental activity. |

4.2 Franklin County (County‑Level)

Montgomery is the only municipality within Franklin County that currently regulates STRs at the town level. The county itself does not impose additional STR‑specific rules; all county‑level regulations that may affect land use (e.g., floodplain management) are already incorporated into the town’s zoning and hazard‑area overlays.

4.3 State of Vermont (State‑Level)

| Issue | Requirement | Source | |-------|-------------|--------| | Municipal Authority to Regulate STRs | 24 V.S.A. § 2291(29) explicitly allows towns to adopt STR ordinances provided they do not adversely affect long‑term rental housing availability. | Ordinance preamble cites this statute. | | Rooms & Meals Tax | All STRs must register for a Meals & Rooms Tax License and collect 9 % tax from guests; remitted to the VT Department of Taxes. | Summer.com “Short‑Term Rental Regulations” (summary). | | Fire‑Safety & Health Standards | The Vermont Division of Fire Safety provides a mandatory “Short‑Term Rental Safety, Health and Financial Obligations” checklist and a fire‑safety inspection for units with > 8 guests. | VT Fire Safety website (codesheets). | | Civil Enforcement | 24 V.S.A. § 1974a permits municipalities to impose civil penalties up to $800 for civil ordinance violations, with each day constituting a separate violation. | Ordinance cites § 1974a. |

5. Contact Information

| Entity | Role / Responsibility | Phone | Email | Website | |--------|-----------------------|-------|-------|---------| | Town of Montgomery – STR Compliance Officer (appointed by Selectboard) | Handles STR registration, inspections, enforcement, and revocation actions. | (Phone not provided in source documents – contact the Town Office for the current officer’s number.) | (Email not provided – request via Town Office.) | Montgomery Town Website | | Town Office (Zoning Administrator / Town Clerk) | Zoning permits, conditional‑use applications, and general municipal inquiries. | (Phone not supplied – see town website or public notice boards.) | (Email not supplied – see town website.) | Same as above | | Vermont Department of Taxes – Meals & Rooms Tax Program | Licensing, tax remittance, and compliance for state‑level tax. | 802‑828‑2551 (main) | tax.questions@vermont.gov | VT Dept. of Taxes – Meals & Rooms | | Vermont Division of Fire Safety – STR Unit | Fire‑safety inspections, required forms, and safety guidance. | 802‑828‑3300 (main) | firesafety@vermont.gov | VT Fire Safety – STR Checklist | | Montgomery Planning Commission / DRB | Conditional‑use review, variances, and zoning interpretations. | (Phone not supplied – contact Town Office.) | (Email not supplied – contact Town Office.) | Same as above | | VTDigger (news article) | Public‑policy context for STR growth in Montgomery. | — | — | Short‑term rentals raise big‑time questions in Montgomery – VTDigger | | Summer.com – STR Management Overview | Market insights, state tax note, and general “how‑to” guidance for Vermont hosts. | — | — | Montgomery, Vermont – Summer.com |

Because the source documents do not include explicit phone or email numbers for the Town of Montgomery, investors should call the Town Office (available on the town website) or visit the office in person to obtain the current STR Compliance Officer’s contact details.

6. Links to Source Documents (for quick reference)

| # | Document / Webpage | What It Covers | |---|--------------------|----------------| | 1 | Town of Montgomery – Short‑Term Rental Ordinance (Oct 2022) | Complete municipal STR rules (registration, fees, occupancy, insurance, emergency contact, enforcement). | | 2 | Montgomery Zoning Regulations (Nov 2018) | Zoning district map, conditional‑use procedures, development standards, and permitted/prohibited uses. | | 3 | VTDigger – “Short‑term rentals raise big‑time questions in Montgomery” (Dec 2019) | Background on community concerns, number of STR units (≈ 230), and the town’s decision to table the draft ordinance. | | 4 | Summer.com – Vacation Rental Management in Montgomery, VT | Market overview and the state‑level Meals & Rooms Tax requirement (9 %). | | 5 | Vermont Division of Fire Safety – STR Safety, Health & Financial Obligations Form | Required safety checklist and link to the fire‑safety inspection process for larger units. | | 6 | 24 V.S.A. § 2291 (Municipal Police Powers) | State statutory authority enabling towns to adopt STR ordinances. | | 7 | 24 V.S.A. § 1974a (Civil Penalties for Municipal Ordinance Violations) | Maximum civil fine ($800) and enforcement mechanism referenced in the ordinance. |

Final Checklist for New STR Investors in Montgomery, VT

1. Confirm zoning – Verify Village 1/2 or Rural/Residential.
2. File Conditional‑Use Application (if required) and obtain DRB approval.
3. Submit STR Registration (pay fee, provide insurance & emergency contact).
4. Complete fire‑safety requirements – inspection for > 8 guests; post the state safety checklist.
5. Obtain Meals & Rooms Tax License and set up tax collection (9 %).
6. Post required signage (emergency contact, safety checklist).
7. Maintain records and renew registration by July 15 each year.

By following these steps and keeping all documentation current, investors can operate a compliant, profitable short‑term‑rental business in Montgomery while respecting the town’s housing‑stock preservation goals and state fire‑safety standards.