Massachusetts Senate to Debate Short-term Rental Bill

BOSTON (AP) — The Massachusetts Senate is expected to debate legislation regulating short-term rentals including those made through online platforms like Airbnb.

The bill the Senate is expected to vote on as early as this week would impose existing state hotel taxes on the rooms and allow communities to impose local excise taxes.

The Senate bill differs from legislation recently approved by the Massachusetts House.

The House bill includes a tiered system that would impose a 4 percent state tax on rentals by individuals who offer no more than two rooms for rent. Short-term rentals made through a professional property manager or investor host would be taxed at 5.7 percent and 8 percent, respectively.

The Senate says their bill would generate $34.5 million in state taxes and $25.5 million in local taxes annually.

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