Details on the Short-term Rental Tax

Massachusetts General Law c.64G, §3A (Occupancy Tax) has been amended to include short-term rentals1 among the list of establishments subject to the local excise tax. The tax will apply to all vacation leases shorter than 32 days.

The tax affects all short-term rentals whether they are booked through firms like Congdon & Coleman, online rental websites or direct with homeowners.

Pursuant to the law, Congdon & Coleman's leases will include the following taxes:

State Tax  5.7%
Local Excise 6%
TOTAL 11.70%

 

The tax will apply equally to all short-term rentals whether they are booked through firms like Congdon & Coleman, online rental websites or direct with homeowners.

Aside from the tax, what else does this law entail?
Each short-term rental unit is required to be listed on the state's short-term rental registry. If you have not yet registered your home, please contact 

Additionally, every homeowner that rents out their property must carry not less than $1 million of liability coverage for each stay unless the hosting platform provides equal or greater coverage. Contact your insurance agent to ensure that your homeowners insurance policy is sufficient.

Who collects the tax and remits to the State?
The law requires whoever collects payment for the rental to collect the tax and remit it to the Commonwealth. Congdon & Coleman will collect and remit the taxes for all leases to which the taxes apply. The Department of Revenue will issue regulations to clarify how often the tax should be remitted to the Department.

Which properties and leases are exempt from the tax?

  • Leases entered into prior to January 1, 2019 are exempt.
  • Leases which begin (arrival date) prior to July 1, 2019 are exempt.
  • Leases for stays of 32 days or longer.
  • The law does not apply to properties rented for fourteen (14) days or fewer per calendar year if the homeowner files an affidavit with the Department of Revenue that they will rent for less than 14 days and will be responsible for paying the taxes themselves if the property is later rented for more than 14 days.

  1 Definition of Short-term Rental

The law defines "short-term rental" as an owner-occupied, tenant-occupied or non-owner occupied property including, but not limited to, an apartment, house, cottage, condominium or a furnished accommodation that is not a hotel, motel, lodging house or bed and breakfast establishment, where: (i) at least 1 room or unit is rented to an occupant or sub-occupant; and (ii) all accommodations are reserved in advance; provided, however, that a private owner-occupied property shall be considered a single unit if leased or rented as such.

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We have used several realtor agencies over the years and by far, this is the best! Ask for Tom W. and you won't be disappointed. Located right on Main Street with dozens of rentals and homes for sale.

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