Info on Massachusetts new STR law that takes effect 7/1/19

Regulations/Tax Issues
1

For anyone who runs a STR in Massachusetts I finally found an information page on the new law that takes effect 7/1/19

https://www.mass.gov/info-details/short-term-rentals-frequently-asked-questions

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2

I have been in touch with the contact person at Mass DOR about some things that seemed unclear in law and web pages, and for example, in the linked Working Draft TIR-19, it’s not clear when taxes are due for a rental that spans two months but it less than 31 days. The answer is the month following the end of rental.
Note that the tax applies to cleaning fees and service fees so the booking fee that guest pays to Airbnb IS taxable!

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Anything MA does, Gina copies. Im in RI. Hi neighbor:)

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Taxes are due by the 20th of the following month.

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Yes, but in that specific web page, if you read it closely, there are a couple of places where it’s not that clear and could be interpreted as the July portion of a spanned rental was due in August and the remaining August portion would be due in September, etc.

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@pleasantforestshores Who did you talk to at Mass DOR?

The way I read the law, it is the responsibility of Airbnb or VRBO to collect & remit the taxes but I’m now concerned that I might be on the hook.

I reached out to our August guest telling him that VRBO would be required by law to collect a 17.45% tax from him. He responded saying that VRBO specifically stated that all taxes were already included in the rental fee.

I’ve also heard through the grapevine that neither Airbnb nor VRBO have entered into an agreement with the state to collect taxes.

Are we going to be on the hook for the taxes in the event that neither Airbnb nor VRBO collect and remit them?