On December 28, 2018, the Governor signed a bill to tax and regulate short term rental properties in the Commonwealth of Massachusetts.
What defines a Short Term Rental?
-Stays that are 31 days or less
How much are the taxes?
-State Tax: 5.7%
-Local Tax: 6%
-Total: 11.7%
Who does the tax apply to?
-Tax applies to any leases written after January 1, 2019 for leases that have a start date of July 1, 2019 and after.
-Additional taxes that have not been adopted yet are the Cape and Islands Water protection 2.75%. The Nantucket Select Board will vote in the fall of 2019 regarding this additional tax.
Any Chance I Can be Tax Exempt?
YES! However, there is no exemption on registration or insurance. The tax exemption is if your home rents for 14 days or less in the calendar year, tenant is active military, or tenant is renting the structure for more than 31 days.
Even if you are tax exempt, you still have to register at Mass Tax Connect.
Click link below for more information:
MassTaxConnectFor more information, click link below:
FAQsFAQs ContinuedOnce you have registered with MassTaxConnect, you will receive a 'Room Occupancy Excise Registration Certificate'. You should provide us with a copy of that certificate for our records so that we may make tax payments on your behalf for the rentals that are handled through our office. The first tax payments are due on August 20, 2019.