Town Meeting to Consider Local Option Room Tax

Downtown on a winter afternoon.
The town is overhauling the zoning in Belmont Center. (Jesse A. Floyd/Belmont Voice)

Though the Belmont Center overlay itself won’t be on the special Town Meeting warrant in October, one article will address the potential addition of hotels as an authorized use in the overlay district.

Specifically, the article on the warrant—signed by the Select Board last week—seeks to adopt the local room occupancy tax under Massachusetts General Law, Ch. 64G, Section 3A. The state’s room occupancy excise tax is 5.7%, and municipalities can additionally charge a local room occupancy tax up to 6%, according to mass.gov. It’s a tax that applies to both hotels—which officials hope to authorize in Belmont Center with a zoning overlay to be discussed early next year—and short-term rentals.

According to Select Board Chair Matt Taylor, Cambridge adopted a 6% local room tax in 2009, with others in the region following suit a year later.

In Belmont, however, short-term rentals are not allowed by right, but are allowed in certain residential districts by special permit, according to Director and Town Planner Chris Ryan. The zoning bylaw also does not allow for the primary use of a residence to be for short-term rentals, but rather as an accessory use. For that reason, there was some debate on whether to also include on the warrant a short-term rental surcharge before the Planning Board had a chance to discuss the zoning for short-term rentals.

“Do they happen? Yes,” said Yates. “We don’t have the capacity to enforce it. … My concern is the Planning Board has not discussed [the surcharge] at all.”

Hotels, meanwhile, have been discussed at length, he said.

The surcharge question, therefore, was omitted from the warrant. Matt Taylor emphasized that adopting the local tax would not change the zoning requirements.

Regardless of whether an Airbnb — a common type of short-term rental —is operating legally within a municipality, Yates said the tax is collected by the state—provided the homeowner has registered the rental with the state—and then distributed to the municipalities.

While he hasn’t been involved in discussions about the proposed tax, Ryan said he thinks it’s an “excellent step” forward.

“It’s an excellent step to prepare for generating revenue from hospitality development that is expected to be important to the Town’s economic development efforts,” he said in an email to The Voice. “RKG’s Market Analysis indicated that the Town could support hotel development and we should take advantage of that recommendation.”

Critics of the plan, however, question the feasibility of hotel development along Concord Avenue, citing concerns about parking and traffic.

Ryan said he is working with the Planning Board on developing a supplementary bylaw that would establish requirements and restrictions on hotel development, including a limitation on size.

“We will be proposing a cap of 150 units by-right and 250 by Special Permit,” he said. “We’ll see how that is received once we discuss it in an upcoming meeting.”

When it will be discussed remains to be determined, he said.

The Belmont Center overlay proposal, which allows for increased building height on Leonard Street, with plans for mixed-use development, stems from a 2008 report, “A Planning Vision for Belmont Center,” which recommended an overlay district.

In April, the project was nixed from the annual Town Meeting warrant to allow more time for data gathering, particularly with respect to traffic and parking. While the traffic study only recently received funding, the parking was expected this week.

In addition to allowing hotel development on Concord Avenue, the proposed zoning allows for a base building height of 2 ½ stories, with a 3 ½ story maximum (through density bonuses) on the northwest side of Leonard Street, according to Director of Planning & Building Chris Ryan. On the southeast side, which includes shops such as CVS and The Toy Shop, Leonard Street would allow buildings zoned for a base of 3 stories, with a 4-story maximum. Town planners will use form-based zoning when creating the overlay, which provides guidelines on the physical design of any new development.

This article has been clarified to more accurately reflect a conversation at the Oct. 6 Select Board meeting.

Mary Byrne

Mary Byrne

Mary Byrne is a member of The Belmont Voice staff. Mary can be contacted at mbyrne@belmontvoice.org.