House Bill Would Tax, Regulate Airbnb, Other Rentals

BOSTON (AP) — A bill under consideration in Massachusetts would place taxes on short-term rentals, including those made available through online platforms such as Airbnb.

The legislation calls for a three-tiered state tax on short-term rentals, and gives cities and towns the option of imposing further excise taxes.

Many Cape Cod hotel operators have said they work at a competitive disadvantage to Airbnb because they have to charge room taxes to their guests.

Under the bill, renters would pay a 4 percent state tax if they stay in a home where no more than two rooms are being rented.

Short-term rentals made through a professional property manager or an investor host would be taxed at 5.7 percent and 8 percent respectively.

The bill would also create a state registry of short-term rental properties.

Members of the House Ways and Means Committee were being polled on the bill Monday and it could go before the full House later this week.

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