ELKTON — Following a public hearing Monday, Elkton’s Town Council unanimously voted in favor of adopting an annual tax rate fee residents will be required to pay for a short-term rental fee.

The amendment will require the annual license tax rate to be 29 cents per $100 of gross receipts, or a $30 minimum.

No one spoke at the hearing.

Council will have to vote in favor of the fee a second time at its June 17 meeting before the amendment can take effect.

Voting in favor Monday were Councilmen Steve America, Randell Snow, Jeff Jones and Councilwomen Heidi Zander and Margaretta Isom. Councilman Jay Dean was not present.

With the special-use permit, properties offered online through Airbnb.com and similar sites will be classified along with bed-and-breakfasts as short-term rentals, and are required to have a special-use permit to operate in residential areas.

Elkton held a public hearing on Sept. 10 to allow short-term rentals, such as Airbnb, to be allowed in a Single-Family Residential District, Residential District, Multiple Dwelling Residential District, Medium Density Residential District and Planned Unit Residential District through a special-exception permit.

At the Sept. 17 council meeting, council members unanimously voted in favor of adopting the amendment, but didn’t specify in the ordinance what the annual license tax would be.

Since September when the amendment passed, there have been no requests for short-term rentals in Elkton, according to Clerk of Council Denise Monger.

Elkton Town Treasurer Clairen Sipe said she does not believe residents are required to live in the residence in which the rental is regulated from.

Grottoes, Broadway and Bridgewater have passed ordinances regulating the rentals along with Harrisonburg.

In Harrisonburg, Airbnbs are allowed in properties zoned B-1 central business and in residential areas, but the applicant must submit a $425 fee to apply for the special-use permit, plus $30 per acre.

Short-term rentals are unregulated in Rockingham County.

Augusta County requires a special-use permit for short-term rentals, but the property must be on a 5-acre parcel. In Page County, short-term rentals are allowed by-right, but property owners must receive a business license, have a maximum occupancy determined by the county health department and pay transient occupancy tax.

Contact Laine Griffin at 574-6286 or lgriffin@dnronline.com. Follow Laine on Twitter @laine_griffDNR

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