The Narragansett Town Council held a work session on February 3, 2025, focusing on the implications of short-term rental taxation and its potential impact on local families and tourism. The discussion centered around a proposed increase in the tax rate for rentals shorter than 30 days, which currently incurs an 8% cottage tax. Representatives expressed concerns that raising this tax to 13% could make summer rentals unaffordable for families, as the additional cost would likely be passed on to consumers.

Council members highlighted the distinction between short-term rentals and hotels, arguing that families renting homes for a week differ significantly from those seeking weekend hotel stays. The conversation also touched on the potential allocation of tax revenue, with suggestions that funds could support local municipalities rather than being directed to the general fund. This would help address the infrastructure demands that come with increased tourism.

The council anticipates further legislative discussions regarding the definition of short-term rentals and the possibility of establishing minimum rental periods. The outcome of these discussions could significantly affect the local rental market and the overall tourism landscape in Narragansett. Council members encouraged ongoing monitoring of these developments to ensure that local interests are represented in any new legislation.