Bill > H3454

This bill establishes a short-term residential rental excise tax in Massachusetts. Key provisions include: - Defining key terms like "business entity," "commercial host," "residential host," and "short-term residential rental." - Imposing a 4% excise tax on residential hosts, an 8% tax on commercial hosts, and a 5.7% tax on professionally managed hosts for short-term rentals. - Allowing cities and towns to impose an additional local excise tax of up to 5% for residential hosts, 10% for commercial hosts, and 6% (6.5% for Boston) for professionally managed hosts. - Requiring short-term rental units to undergo annual safety inspections in cities/towns that accept the provisions. - Giving cities and towns the option to restrict short-term rentals to permanent residents only, limit the number of rental days, and require business licenses for commercially managed hosts. - Establishing penalties and enforcement mechanisms for violations, including civil penalties and potential criminal misdemeanor charges. - Providing an exemption from the excise tax for military personnel renting on official orders. - Allowing insurers to exclude coverage for short-term rental claims under homeowners and renters policies, and requiring hosts to notify their insurers. - Creating a task force to review insurance coverage for short-term rentals.

Business and Industry

https://malegislature.gov/Bills/190/H3454