REALTOR® Day on the Hill Briefing: Room Occupancy Tax

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By Larry Myhre on Flickr

This is the sixth in a series of blog posts familiarizing members with the issues we will bring to the State House at REALTOR® Day on Beacon Hill next week. See our blog for the previous issues.

REALTORS® Oppose Local Imposition of Room Occupancy Tax – H.2689 (Provincetown), H.2695 (Wellfleet), H.2752 (Brewster)

These proposals would create a new tax on homeowners who choose to rent their homes for less than 90 days. This means a city or town could levy a room occupancy tax on any apartment, single or multiple family house, cottage, condominium or timeshare unit, in addition to established businesses like hotels and bed and breakfast establishments.

MAR opposed this tax for several reasons. One, many private individuals are unfamiliar with the collection, handling and remittance of these taxes, as they have never been required. Inadvertent errors in compliance could results in penalties. Additionally, it may cause homeowners who rent not to report their rental income.

On a broader spectrum, for a community whose tourist attractions derive significant revenues from visitors who use short term rentals, this tax will negatively impact these revenues as seasonal rentals will not be available or will become too costly.

Ask your legislator to urge the Joint Committee on Revenue to OPPOSE any Local Room Occupancy Taxes at REALTOR® Day on Beacon Hill.

2014 MAR President Peter Ruffini invites you to REALTOR® Day on Beacon Hill, where REALTORS® will have a chance to network and learn about the key legislative issues that will affect the real estate industry and private property in 2014. Attend the REALTOR® Day on the Hill and make an impact on the legislative process. Check out the video.

REALTOR® Day on Beacon Hill is scheduled for:
Wednesday, June 11th, 2014
10:00 to 11:00AM
Massachusetts State House, Great Hall