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A Quick Update on the Proposed Vacation Rental Lodging Tax Issue

Joan Talmadge | 4/23/2014 (updated 6/8/2017)

low-chance-lodging-chanceA recent article in the Worcester Telegram prompted me to look into the current status of any proposed legislation regarding the extension of the lodging tax to private home rentals.  For the past ten years or so, local state legislators (primarily from the Cape) have proposed extending this tax to include vacation rental homes.

Currently hotels, motels, and inns in MA pay an 11.7% tax:  5.7% goes to the state and 6% to the individual towns.  If this tax were to be imposed on vacation rental homes, rental homeowners would be faced with the decision of absorbing the tax themselves or passing it on to their tenants.

Governor Patrick’s 2015 budget did include a measure to extend the lodging tax to private homes. When I communicated with Rep. Alice Peisch of Wellesley last week, however, she indicated that the House Ways and Means budget, released on April 9, did not include any changes to the lodging tax.  Rep. Peisch feels that there is little chance that this topic will come up again during this budget season.

So, for now, we rental homeowners do not need to worry about how we would go about paying this additional tax.

About Joan Talmadge

About Joan Talmadge: My husband Jeff and I created WeNeedaVacation.com in 1997, shortly after buying our Cape home. My background includes teaching fifth grade for 8 years and writing and editing educational publications for 15. I get great joy from helping fellow homeowners successfully rent their homes. Jeff and I are proud to have two of our three grown children working for WeNeedaVacation.com, truly a family-run business. For me, the Cape and Islands are magical all times of the year -- whether it's walking on Nauset Beach, playing golf, or enjoying family and friends.