Overview: Are Short‑Term Rentals Allowed in Bath, ME?

Yes—Bath, Maine permits short‑term rentals (STRs), including whole‑home rentals, B&Bs, and Airbnb‑type operations. The Town of Bath adopted new STR regulations in 2024 (effective July 1) by adding Chapter 18, Article 5, “Bed and Breakfast Facilities, AIRBNB and other short‑term rental facilities.” As an investor, you may operate an STR provided you obtain a business license, pay the required fee, and comply with the purpose and standards of the ordinance: preventing adverse neighborhood impacts (excessive traffic, noise, density), maintaining occupancy within the structure’s design capacity, and meeting minimum health and safety standards.

How to Start a Short‑Term Rental Business in Bath

• Confirm property eligibility within Bath’s zoning and land use requirements.
• Prepare a complete license application for the Town of Bath (see Required Documents below).
• Submit the application to the Town Office at 271 Wilkes Street, pay the $200 annual license fee, and plan for timely renewals each year.
• Put operational safeguards in place to meet the ordinance’s purpose and minimum standards:
  • Limit guest occupancy to the structure’s design capacity to avoid health and safety risks.
  • Adopt guest rules and monitoring procedures to control noise, traffic, and activity to mitigate neighborhood impacts.
  • Maintain the property in safe, sanitary condition.
• For state-level tax compliance, register with Maine Revenue Services to collect and remit the 9% Vacation (Casual) Rental Tax.
• Post‑licensing, track and satisfy state requirements such as the LUPC notice and occupancy standards if your property falls under Commission jurisdiction.

Required Documents, Permits, Licenses, and Guidelines

• City (Bath) requirements:
  • Annual STR business license issued under Chapter 18, Article 5; $200 fee per license year; renew annually.
  • Application must be filed with the Town Office, 271 Wilkes Street, Bath, ME (copy of proposed ordinance available at that location).
• State requirements:
  • Maine Vacation (Casual) Rental Tax: 9% lodging tax on short‑term rentals unless an exemption applies.
    • Major exemptions include:
      • Casual rentals totaling fewer than 15 nights per year (applies to a single unit; if you use a manager or agent, they must collect and remit regardless of nights rented).
      • Continuous occupancy of 28 days or more when the renter uses the unit as their primary address or rents in connection with education or employment.
  • Land Use Planning Commission (LUPC) notice for STRs in Commission jurisdiction:
    • A no‑cost notice must be filed to verify compliance with activity‑specific standards.
    • If you exceed standards (e.g., occupancy), a permit application may be required, and the Commission must find no undue adverse impacts.
    • Single STR on a single lot is treated as residential; multiple STRs on the same lot typically constitute commercial use and require a permit.

Specific Regulations: City, County, and State

City of Bath (Sagadahoc County)

• Ordinance: Chapter 18, Article 5, “Bed and Breakfast Facilities, AIRBNB and other short‑term rental facilities.”
• License: Annual business license required; fee $200; due at issuance and renewal.
• Purpose and operational intent:
  • Allow rental of private residences to visitors on a short‑term basis while minimizing adverse impacts (traffic, noise, density).
  • Ensure occupants do not exceed the structure’s design capacity and that minimum health and safety standards are maintained.
• Application: Filed with Town Office at 271 Wilkes Street; proposed ordinance copy available there.
• Renewals: Required annually; maintain compliance with health/safety and neighborhood impact standards.

County Level (Sagadahoc County)

• No separate Sagadahoc County STR regulations were identified in the provided sources. County‑wide references are governed by state law and local municipal codes.

State of Maine (LUPC and Statewide)

• Vacation (Casual) Rental Tax: 9% tax on short‑term rentals. AirBnB platforms often collect and remit sales tax on behalf of operators; you remain responsible for compliance.
• LUPC activity‑specific standards for STRs in Commission jurisdiction include:
  • Written notice to the Commission (no fee).
  • Maximum allowable occupancy based on bedrooms.
  • Subsurface wastewater disposal system compliance with Health and Human Services rules.
  • In‑unit posting of a local 24‑hour contact and the E‑911 address.
  • Sufficient off‑street parking to prevent driveway obstructions and ensure emergency access.
  • Regular solid waste disposal arrangements.
• Permit triggers:
  • STRs that exceed standards (e.g., occupancy) require a permit; the use remains residential unless there are multiple STRs on one lot, in which case it’s commercial.

Statewide Tax and Legal Context (Informational)

• Maine’s STR regulations vary by municipality. Cities such as Portland, Bar Harbor, and Rockland have more granular registration, inspection, and cap rules. These do not apply in Bath but illustrate that local regulation is common across Maine.
• In many cities, registration numbers must appear on advertisements, and properties are subject to inspections and reporting obligations.

Contact Information

• Local Authority (Town of Bath):
  • Location: Town Office, 271 Wilkes Street, Bath, ME 04530
  • Purpose: Business license application, renewals, and ordinance compliance questions
  • Note: Contact the Town Office directly for current phone/email.
• Maine Revenue Services (Vacation/Casual Rental Tax):
  • Registration for tax collection/remittance; confirm MaineVentures portal details with the state.
• Maine Land Use Planning Commission (LUPC):
  • Mailing Address: 22 State House Station, Augusta, ME 04333‑0022
  • Phone: (207) 441‑3761
  • Email: Stacy.Benjamin@maine.gov
  • Note: State Commission rules apply primarily to unorganized or development permit areas; they do not substitute for municipal licensing in towns like Bath.

Links to Source Pages (Important)

• New Bath STR regulations article (May 21, 2024) including license fee, ordinance context, and application location:
  • www.morganmessenger.com/2024/05/21/new-regulations-for-bbs-and-short-term-rentals-in-town-of-bath-could-be-effective-july-1/
• State tax overview and general Maine STR context:
  • www.hostfully.com/regulations/maine/
• LUPC proposed rule revisions and public comments (definitions, occupancy, notices, standards):
  • www.maine.gov/dacf/lupc/projects/short-term-rentals/comments/STRRulemaking_PublicCommentsReceived.pdf
• LUPC Chapter 2 definitions (2021) for reference:
  • www.maine.gov/dacf/lupc/laws_rules/rule_chapters/Ch02_ver2021.pdf

Investor takeaways: Bath is open for STRs under a straightforward $200 business license with clear operational expectations. In parallel, plan for state tax compliance and, where applicable, LUPC notice or permit standards. These layers—municipal licensing and state tax/land‑use rules—define your compliance profile and help ensure a stable, low‑friction short‑term rental operation.