- Massachusetts Department of Revenue
As June approaches, here are a few tips to make taxes easier so you have more time to enjoy the summer.
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Filling the What’s New column includes these topics:
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If so, bookmark Simply Taxes for an upcoming blog about paying boat sales or use tax.
What is a short-term rental?
A short-term rental is a non-hotel, motel, or bed and breakfast establishment where an operator rents out at least one room or unit through advance reservations.
Short-term rentals include:
- apartments
- houses
- cottages and
- condominiums.
Short-term rentals exclude:
- tenancies at will
- month-to-month leases
- time-share properties and
- bed and breakfast homes.
Operator Registration
Who is an operator:
An operator is anyone who operates a bed and breakfast, hotel, lodging house, short-term rental, or motel, including owners, lessees, sublessees, mortgage holders, licensees, or others.
The rules for room occupancy rental do not require an operator to be a Massachusetts resident or a Massachusetts-based business.
If you are a short-term rental operator, you must:
- Register with DOR and
- Get a Certificate of Registration for each property you offer for rent.
Need help to register? This section has step-by-step instructions and more about the Certificate of Registration.
Intermediary or Operator's Agent Registration
Do you need to register as an intermediary or operator’s agent? This section will show you how.
Short-Term Rentals Checklist
- Learn about the room occupancy excise tax rules
- Learn about what’s what in a useful Definitions section
- Check with your city or town about separate registration or licensing requirements
- Learn about additional taxes based on property location
- Operators: Get a Certificate of Registration for each property you rent
- Operators: You must post the Certificate of Registration on each property you rent
- Operators: If you have an intermediary or intermediaries, give a copy of the Certificate (or the Certificate number) to them
- Register as an operator or learn how to register if you don’t have a business in Massachusetts and a MassTaxConnect account
- Intermediary or operator’s agents: learn how to register
- Learn about the 14-day rental exemption
- Learn about filing returns and paying taxes and fees to DOR
State and Local Room Occupancy Excise Rates and Fees
The tax collection amount depends on the property's location. Visit the Division of Local Service's Municipal Databank for current fee rates and Cape Cod and Islands Water Protection Fund localities.
The state's room occupancy rate must be:
- Combined with local rates and fees and
- Reported to DOR on the same return.
Exemptions
Operators must claim or renew a 14-day rental exemption by January 15. If not, intermediaries or agents will collect sales tax on the rental from January 1.
The excise has several exemptions, including those for:
- short-term rentals (31 days or more) and
- traditional lodgings (90 days or more).
You might find these links useful:
