Hi, Duane, Short term refers to any rental period of 31 days or less. Only the 15 towns in Barnstable County are subject to the Wastewater Tax. Rents collected and reported by an intermediary are not considered exempt rents for the operator. We now provide this language on all listings: State and local taxes of X% will apply. The exact percentage is determined by the town in which your rental home is located. Let me know if you would like a copy of our sample short-term vacation rental lease. Then we were told that we would indicate which months we typically rent our homes, and we would have to file a return for each of those months, whether an actual amount or 0 if no tax was collected for that month. If you do withhold any of it, you will be responsible for paying the tax on the amount you withhold. Short term refers to any rental period of 31 days or less, so annual or long-term rentals are excluded from the tax. The state excise and any local option excise, including the Convention Center Financing fee, the new Cape Cod and Islands Water Protection Fund excise, and any community impact fee are to be paid with the return. Any lease signed on or after this date for a rental term beginning July 1, 2019, or later must include the rental tax. So any leases you sign from now on for occupancy in your home starting July 1, 2019, or beyond are subject to the new tax. Professionally-Managed Units:one of two or more short-term rental units that are located in the same city or town, with the same operator. This is contrary to the email which advises that a return should be filed for July even if there is zero tax due. How much is the tax? Our property ID # is 20909. Do not include sensitive information, such as Social Security or bank account numbers. No, the lodging tax is meant to be paid by the renters, just like they would pay the tax at a hotel or motel. The state will retain its 5.7% and remit the balance to your town. Short-Term Lodging Tax Percentage by Town. How do you interpret that? If your carrier does not provide the required $1M liability coverage, you might need to take out an umbrella policyto supplement your current policy, or switch to a different provider. Hi, David, Created by WeNeedaVacation.com. Email Joan, Is it possible to register and pay the tax on paper forms and send them USPS? Towns may implement a health and safety inspection requirement and determine the frequency of the inspection. Want to be sure I capture all of this information correctly. Thanks! This is what the DOR says about an increase in fees or a new fee: If an occupancy occurs after a rate increases or a new fee is imposed, whoever collects the rent must collect any amounts due from occupants that were not paid prior to occupancy. Although room occupancy excise applies only to short-term rentals of property for 31 days or less, we recommend that all operators register, even those with short-term rental properties that are always rented for periods of more than 31 days. What if I rent my home by the week in the summer but long term (formore than a monthto one party)in the winter? You will find more information on these exemptions in the regulation.
Ten months? BOB on Nantucket. And yes, you should simply add a line item in your lease for the Lodging Tax under the payments section. Beginning July 1, 2019, for short-term rentals only, cities and towns that have adopted a local excise may vote to charge an additional community impact fee up to 3% on the following types of property: For traditional lodgings (bed and breakfast establishment, hotel, lodging house or motel) the date of booking is not important. to explain the changes formunicipal governments. It also does not include time-share property or bed and breakfast homes (see definition of bed and breakfast).
Visit, Division of Local Services Municipal Databank. Any homes located in Off-Cape townsare also not subject to the Wastewater Tax. An intermediary includes a broker, hosting platform, or operators agent. https://malegislature.gov/Laws/SessionLaws/Acts/2018/Chapter337, Sen. Julian Cyr beginning July 1, 2019. If I didnt have any taxable rentals during the previous month, do I still need to file with MassTaxConnect? . Dept. business/commercial policy suitable for short term rentals. Hello , How should I present the tax on my listing? Many thanks for all you do! The law expands the states hotel and motel tax to include the short-term rental of homes and condos. Share sensitive information only on official, secure websites. The amount must be greater than $0. I would also appreciate a copy of your lease. You can find more information on specific records to be kept by reviewing the, Responsibilities other than filing returns and paying taxes for intermediaries, The Division of Local Services has compiled. If the operator does not provide this identifying information, you may not allow the operator to list their rental property with you. An operator may enter into an agreement with an intermediary to collect rent. 
No, Rick, you were correct initially. I rent my house in falmouth about 10 weeks a year and it is two bedrooms and I stay on the property during they my use my others rooms If I live in the house at the same time as my guest do i need to file It is my only resident and I am 76 years old.
The only month for which you need to file are those in which you had one or more taxable rentals. The rental contract must create a binding obligation between the operator, intermediary or operators agent and the occupant. Room occupancy returns are due monthly on or before the 30thdayfollowing the month represented bythe return.
to seep out into the fragile ecosystem of the Cape. Twelve? Beginning July 1, 2019, the room occupancy excise also applies to. An Excel template is available for uploading through MassTaxConnect with all the appropriate cells in the appropriate order. I notice that the tax is announced on the Homeowners page but I dont see it anywhere in your general info that is open to the public. HomeAway, for example, only gives the insurance coverage to rental transactions that go through them. 8:30 a.m.4:00 p.m., Monday through Friday, Text of the law: The email I just received from We Need a Vacation.
They will log in under their existing username and password and add the Room Occupancy Consolidated account type.
Is We need a vacation going to add it somewhere in the calendar section or on their main home page? As an intermediary, you must confirm that the operator whose rent you are collecting has registered with the Department of Revenue through MassTaxConnect. Ill send it right along. You can find information about local rules, including whether a city or town is a member of the Cape Cod and Islands. The deadline for claiming the exemption for each calendar year is January 15 of the year claiming the exemption. c. 62C, 16B. Otherwise, it is not taxable. A short-term rental includes an apartment, house, cottage, and condominium.
Hi Rick, Your question is an interesting one and one that Im not sure the DOR addresses. The taxes remitted would include state excise and any local option excise, including the 2.75% Water Protection Fund excise. It does not include property that is rented out through tenancies at will or month-to-month leases. If I didnt have any taxable rentals during the previous month, do I still need to file with MassTaxConnect? Payment of the tax must be online, and the only way to submit it is to log in to the account that is created when you register. seeing it. Visit the Division of Local Services Municipal Databank for current local option and community impact fee rates as well as information about which localities are part of the Cape Cod and Islands Water Protection Fund. Operators may find that intermediaries require registration information regardless of the term of the short-term rental. Whether by check or credit card, the taxes could be combined. It is a significant savings if the site is covering the insurance for that particular rental (liability). Changes to local option rates or other locality-based fees, Changes to local option rates and fees require a vote by the legislative body of the city or town. Once you have set up your account password: Registering and collecting tax for a property that is rented for only a few days a year as a short-term rental, No matter how many days your property is available for rent each year, you must register with DOR using. If we are not on town sewer, do we pay a wastewater tax? Am I required to carry insurance for my home? While registration is not required under these circumstances, operators will then be in compliance in the event their short-term rental property is rented for a period of 31 days or less. The property is not within a single-family, 2-family or 3-family dwelling that includes the operators primary residence. Changes to local option rates and fees require a vote by the legislative body of the city or town. So, one of my guests, rents for 28 days in June, which I price relatively low ($200 less than my Summer Rate) It looks like she would be better off next year to rent for 32 days. A bed and breakfast establishment, as defined above, requires registration with DOR. Am I required to carry insurance for my home? See below. Generally, a real estate agent works for a real estate brokerage or company and any rent associated with a listing by a real estate agent is collected by the company. Massachusetts has a state room occupancy excise tax rate of 5.7%. EmailJulian.Cyr@masenate.gov, Tax Percentages for each town Your short-term tenants would pay a tax, and you would remit the tax for those months. desimonej@dor.state.ma.us I have heard that for 14 days, I am exempt, In the example you gave, you would not remit the tax for the guests stay until October 20. what are the penalties if you dont report the sttax? Should I absorb any of this tax myself? The states room occupancy excise tax rate is 5.7%. Do I need to register my home? If the rental week for a single renter starts the end of August and continues a couple of days into September, how do we report that rental income for the month? No, Ken, WeNeedaVacation.com is under no obligation to the Comm. 
Rent includes all optional charges, including but not limited to the following: security deposits, insurance, linen fees, cleaning fees, service charges. I was surprised to see security deposits included as taxable. Glad I noticed this with still a few months to work out insurance.
When you file your room occupancy consolidated tax return, include all rents in line 1, total rent. No, if you had no taxable rentals during the previous month, you do NOT need to log in and file a 0 payment. 
However, if the property is rented for 14 days or less in a calendar year, you are not required to collect any tax. Do Marthas Vineyard and Nantucket require collection of the Wastewater Tax? Protect yourself from a possible tax increase! See TIR 05-01 for more information. Since the law doesnt specify that the 31+ days must be consecutive, I would think theres reason to believe that your 32-day guest is exempt from the tax. How can I determine what amount my town is assessing for the local tax? Whoever collects the rent is responsible for the payment of the tax or fee due based on the effective date of the change, not the date a contract was signed or any money was collected.. You can find more information about how to report and remit amounts collected in response to local rate changes in the, Amounts paid by an occupant that were previously reportedby the operator as taxable gross receipts for sales or use tax purposes. (See below for more details about insurance requirements). New Advance Payment Requirement for Vendors and Operators in G.L. Alodging house or establishment is where lodgings are rented to four or more persons unrelated to the operator. 