Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2014

3.203 -Exemption for Hotel/Motel Rooms

Item DescriptionFY2012 FY2013 FY2014
3.203 Exemption for Hotel/Motel Rooms
Rental charges for real property are exempt from sales tax. However, rentals of rooms in hotels, motels or lodging houses are subject to a state excise at a rate of 5.7% of the rental price, and, at a municipality's option, to a local excise of up to 6% of the rental price (6.5% in the city of Boston). A Convention Center financing fee of 2.75% is also included in certain areas.

Comment: Revenues collected under the budgeted state room excise were
$110.4 million in Fiscal Year 2011 and $121.6 million in Fiscal Year 2012.

Origin:  General exclusion of real property transactions
Estimate:  $144.1
133.4 140.8 144.1


M.G.L. Massachusetts General Laws
ESTIMATES All estimates are in $ millions.

top of page link top of page