Understanding Stowe’s New Short-Term Rental Ordinance
The Town of Stowe officially enacted its new Short-Term Rental (STR) Ordinance following adoption by the Town Selectboard. The ordinance establishes formal regulations, licensing requirements, and operational standards for residential properties rented on a short-term basis within the town.
Core Provisions of the Stowe STR Ordinance
1. Definitions and License Requirements
Definition of STR: A short-term rental is defined as any lease or rental of a residential property (or portion thereof) to the transient public for fewer than 30 consecutive days and for more than 14 days per calendar year.
Annual License: All STR properties must obtain an annual Short-Term Rental License, which runs from May 1st to April 30th and requires an annual renewal.
Exemptions: Properties designated as Commercial Lodging Establishments — including hotels, motels, inns, bed & breakfasts, and properties located within certain designated Ski PUDs and Resort PUDs (such as Spruce Peak, Topnotch, and Trapp Family Lodge) — are excluded from the STR definition. Timeshares in place as of the adoption date are also exempt.
2. License Cap and the September 15, 2026 Deadline
850 License Cap: Beginning September 15, 2026, the ordinance establishes a cap of 850 total STR licenses in the town.
Grandfathering: Valid license holders who register prior to September 15, 2026, are allowed to renew annually as long as they meet renewal requirements, even if total town-wide licenses exceed 850.
Lottery System: Once the total number of valid licenses exceeds 850, no new standard STR licenses will be issued except through an annual lottery system administered by the Town Manager between June 1 and June 30. For the 2027–2028 and 2028–2029 registration periods, the town will make 20 new licenses available annually via lottery if the cap remains filled.
3. Primary Residence (Homestead) Provisions
Town Residents: Owners whose Stowe property qualifies as their Primary Residence (Homestead) may obtain a Homestead STR License even when the total license limit is reached.
Limit: Homestead owners may hold licenses for up to two dwelling units located on their primary residence property.
4. Transferability and Real Estate Sales
Real Estate Sales: STR licenses do not transfer to a buyer during standard property sales or conveyances. Buyers of an existing STR property must apply for their own license.
Exempt Transfers: License transfers are permitted without losing license status under specific circumstances, including transfers to a trust, transfers between immediate family members (spouse, parent, child, child’s spouse, grandparent, grandchild, grandchild’s spouse), divorce court decrees, or inheritance upon death to qualifying family members holding at least a 10% share. Transferees must submit a renewal form within 30 days of the transfer.
5. Operational and Safety Requirements
Designated Responsible Person: Owners must designate a contact person (who may be the owner) authorized and available to respond to emergency situations. The designated person must be able to respond in person within 45 minutes of notification by Stowe fire or police personnel.
Emergency Access: STR properties must provide the Stowe Fire Department year-round, 24-hour access via a fire department–approved lockbox or other authorized means.
Posting Requirements: The contact phone number of the Designated Responsible Person must be visibly posted inside the dwelling unit.
Ad-Listing Numbers: License numbers must be displayed in online listings or advertisements.
6. Appeals Process
Property owners who disagree with the requirement to register an STR can appeal to the Selectboard within 15 days. Exemption requires satisfying criteria related to Vermont tax payments, state lodging/food licenses, local zoning permits, and building structures with three or more concurrently rentable units.
