BOSTON – Property owners in Massachusetts, take note. The Bay State has a new law that applies state and local taxes to short-term rentals, or those that are more than two weeks in duration and less than 31 days.
The law affects rentals starting July 1, for which a rental contract was entered into on or after Jan. 1, according to a summary posted by the state of Massachusetts. It applies to houses, apartments, condos and cottages, but does not include time-shares or properties rented out through tenancies at will or through month-to-month leases.
The tax will vary, based on local taxes, but will include a state excise tax of 5.7 percent. Local taxes can range from nothing to 6.5 percent, based on the town. Cape Cod and Islands properties, which are part of a water protection fund, may add another 2.8 percent.
All property owners who intend to rent their properties also have to register. The registry is still in development.
For more information, click here.
Mary MacDonald is a staff writer for the PBN. Contact her at email@example.com.