Short-Term Rental Tax Law Update

The Commonwealth of Massachusetts’ new short-term rental tax law was passed by the legislature and signed by the Governor the last week of December. The Department of Revenue has released this guidance document last week with future updates expected.

The short term rental tax will begin July 1, 2019. The 2.75% Water Protection Trust Fund will also begin July 1, 2019, and will apply equally to all accommodations’ transactions, short-term rentals or traditional hotels, motels and B&Bs.

The Water Protection Trust Fund was established in order to offset an anticipated $1 billion expense to property taxpayers in Barnstable County for wastewater management. This applies only to Barnstable County.