The time has come. As of July 1, 2019, short-term rental operators in MA will need to register with MassTaxConnect, and begin collecting and remitting the required 5.7% tax. In the June DOR newsletter, Commissioner Christopher Harding spelled out the requirements and gave links for FAQs and further information.
Effective date is July 1 for short-term rental and lodging changes
The effective date for the new legislation that expanded room occupancy excise to include short-term rentals, and made other changes that will affect traditional lodging accommodations, is July 1, 2019. Intermediaries for short-term rentals or traditional lodging will need to register on MassTaxConnect as will short-term rental operators. If rent is collected, there’s a requirement to also collect the appropriate tax and remit it to DOR and file returns. We have lots of information on the webpage. [Source: June 2019 DOR News]
We encourage you to share this information with your clients who operate short-term rentals through websites such as Airbnb. (Note: Those who rent for 14 days or fewer per year are exempt from the tax regulations.)
For questions pertaining to any of the legislative matters discussed here, please contact MAIA President & CEO Nick Fyntrilakis at firstname.lastname@example.org or 508-634-7352.