Bill > H2618

This bill establishes regulations for short-term residential rentals, defining terms like "Hosting Platform" (companies that facilitate rentals, often online) and "Principal Occupant" (the owner or lessee offering the rental). It imposes a 5% state excise tax on renters for short-term rentals, with a minimum rent threshold, and allows cities and towns to impose an additional local excise tax of up to 6% (or 6.5% in Boston). Renters are responsible for paying these taxes to the Principal Occupant or Hosting Platform, who must then collect and remit them. The bill also outlines requirements for lawful short-term rentals, including registration on a state registry, obtaining a license, maintaining liability insurance, and complying with local codes, with penalties for violations. Hosting platforms are required to inform users about these regulations and their tax obligations. Additionally, cities and towns have the option to restrict short-term rentals to permanent residents, and an exemption from the excise tax is provided for U.S. military employees traveling on official orders. The regulations are set to be implemented by December 31, 2015.