Massachusetts approves short-term rental tax

Massachusetts’ legislature just approved a bill that implements taxes and regulations on short-term rental activity in the state.

The bill will extend the state’s current 5.7% hotel tax to most short-term rentals and give municipalities the option of tacking an additional 6% onto the tax; 9% if an owner rents out two or more units in the same community.

Additionally, the bill would make Massachusetts the first state to track short-term rentals via a statewide registry.

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Massachusetts lodging trade groups laud the bill saying it will help put them back in the game.

“It goes a long way toward leveling the playing field for all lodging businesses while maintaining a welcoming environment for new home-sharing platforms,” Paul Sacco, president and chief executive of the Massachusetts Lodging Association told CBS Boston.

Governor Charlie Baker has yet to approve the bill, and traditional lodging entities like MLA are urging him to sign it into law quickly.

The short-term rental game is changing as municipalities, states and multifamily entities continue to take issue with the way it is played. Concerns regarding quality of life in communities where short-term rentals take place, rising rents and who gets to cash in on the mounting demand for the product have all created the conditions for a revolution in the space, and it is only a matter of time before the short-term rental industry goes through drastic changes.

Source: Boston CBS