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New Massachusetts short term rental tax not popular with property owners
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10 January 2019 (Edited 10 January 2019)


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New Massachusetts short-term-rental tax bill signed into law by MA Gov Baker is pretty complicated.

Key points:

  • Each rental unit must be registered with the MA short-term-rental agency.
  • "Short-term rental" means up to 31 days.
  • State tax is 5.7%.
  • Local (town) tax varies by town, up to 6% max. Towns is some counties, but not all, are automatically opted in to this.
  • Towns can also opt in to adding a Community Impact Fee of up to 3% to be charged to owners of multiple rental properties.
  • Whoever collects the rent is responsible for collecting the tax.
  • Landlord must carry at least $1M in liability insurance for each stay unless e.g. Airbnb provides higher coverage.
  • Properties rented for fewer than 14 days a year are exempt from the state tax but not from registration and insurance requirements.
  • Towns may require their own registration and inspections and assess landlords fees for same.

That's a pretty tough law that creates headaches for landlords, towns and Airbnb (etc.) alike. Will be interesting to watch the implementation. Expect to see a lawsuit from Airbnb.


David Boggs President/CEO - ACRO Global | Publisher - Tourism Marketer
David Boggs
President/CEO ACRO Global
Publisher - TourismMarketer
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External Article: https://malegislature.gov/Bills/190/H4841


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