Massachusetts Senate Releases Bill to Tax Short-Term Rentals

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The Massachusetts Senate has released a bill aimed at taxing short-term rentals, including those made through online platforms like Airbnb.

The bill unveiled Thursday would impose existing state hotel taxes on the rooms and allow communities to impose local excise taxes.

The bill differs from legislation approved by the Massachusetts House last week.

That bill included 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.

Airbnb said the House bill goes too far.

Backers of the Senate bill say it would generate $34.5 million in state taxes and $25.5 million in local taxes annually.

Copyright AP - Associated Press
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