Bill > S2400

This bill regulates and insures short-term rentals in the following key ways: 1. It establishes the Cape Cod and Islands Water Protection Fund, which will be financed through a 2.75% excise tax on the transfer of occupancy of rooms in certain short-term rental properties located within member municipalities. The fund will provide subsidies and other assistance for water pollution abatement projects in these municipalities. 2. It imposes a 5% state excise tax on the transfer of occupancy of rooms in bed and breakfast establishments, hotels, lodging houses, transient accommodations, and motels. Cities and towns can also impose a local excise tax of up to 6% (6.5% for Boston). 3. It requires hosting platforms that facilitate short-term rentals to collect and remit the state and local excise taxes on behalf of operators, if the platforms enter into an agreement to do so. 4. It requires hosting platforms to maintain liability insurance of at least $1 million to cover each short-term rental unit, and to provide notice to operators that their standard homeowners or renters insurance may not cover damage or injury related to the rental. 5. It establishes a commission to study the feasibility of using short-term rental properties as emergency shelter during extreme weather events or other states of emergency declared by the governor.

https://malegislature.gov/Bills/190/S2400