UPDATE: Governor Charlie Baker sent the bill back to the House and Senate with recommended amendments. He is asking for a 14-day rental exemption for owners who rent their house out for less than 14 days a year; fixing an issue with the convention center tax; and to nix the online registry. The bill will now go back to the House and the Senate. We will continue to update you as we have more.
The Massachusetts legislature passed legislation (pending Governor Baker’s signature) taxing and regulating the short-term rental market. The following information should help REALTORS® as they navigate the short-term rental market under these new laws and regulations.
Your Association of REALTORS worked for more than a decade successfully advocating for the defeat of these new taxes. It is only after the shift to the “sharing economy” and the impact of online portals that legislation was passed. Throughout the debate, the Cape Cod & Islands Association of REALTORS and the Massachusetts Association of REALTORS saw wins influencing and shaping the legislation. Included in this is removing the requirement that real estate brokerages that book vacation rentals would be required to obtain no less than $1 million in liability coverage for each stay they book. This insurance requirement ended up being a requirement of the owner, not the real estate brokerage.
The table below explains the legislation as approved by the Massachusetts House and Senate in more detail. Contact CCIAOR CEO Ryan Castle at email@example.com or (508) 957-4300 with any questions.