Massachusetts H5538: An Act authorizing the city of Salem to increase the short-term rental community impact fee for the purpose of school and municipal facilities

What the bill says

From the introduced text, June 25, 2026:

SECTION 1. Notwithstanding section 3D of chapter 64G of the General Laws or any other general or special law to the contrary, the City of Salem is hereby authorized to impose a community impact fee on professionally managed units and owner-adjacent units used for short-term rentals at a rate not to exceed 6 per cent of the total amount of rent for each occupancy. SECTION 2. The additional revenue attributable to the 3 percentage point increase authorized by section 1, representing the difference between a community impact fee imposed at the rate of 3 per cent and a community impact fee imposed at a rate up to 6 per cent, shall be deposited into the special revenue fund established by the City of Salem. Amounts deposited into said fund shall be used solely for the planning, design, acquisition, construction, reconstruction, renovation, repair, improvement, furnishing, equipping, maintenance, and extraordinary maintenance of school or municipal buildings and facilities of the City of Salem, including, but not limited to, the payment of debt service on bonds or notes issued for such purposes. Nothing in this act shall be construed to limit, impair, or otherwise affect the eligibility or authority of the City of Salem to apply for, receive, or expend grants, reimbursements, or other financial assistance from the Massachusetts School Building Authority or …

Read the full official text

Sponsors

• Manny Cruz (D) · primary sponsor

Latest actions

1. August 10, 2026: Accompanied a study order, see H5646
2. July 10, 2026: Hearing scheduled for 07/20/2026 from 09:00 AM-05:00 PM in Written Testimony Only
3. July 1, 2026: Senate concurred
4. June 25, 2026: Referred to the committee on Revenue

Common questions

What is H5538?

H5538 is a bill in the Massachusetts Legislature (194th General Court): An Act authorizing the city of Salem to increase the short-term rental community impact fee for the purpose of school and municipal facilities.

What is the status of H5538?

Failed as of August 10, 2026. Latest action: Accompanied a study order, see H5646 (August 10, 2026).

Who sponsored H5538?

Manny Cruz (D).

Where is the official record for H5538?

On the Massachusetts Legislature website: https://malegislature.gov/Bills/194/H5538