Massachusetts New Guest Tax???

[Ken-and-Kathleen0]

AirBnB collects and remits taxes in 40+ states, PR and the US Virgin Islands, but for some reason, the tax they were a proponent of in Massachusetts is not even mentioned.

There have been no updates by AirBnB on how they are going to help their hosts handle this tax which according to the State information includes all fees cleaning, and service (AirBnB Service Fee?) and the Security Deposit.

The bulk of Massachusetts AirBnB revenue in Massachusetts would have to come from Summer Rentals in places like the Cape, Martha's Vineyard, Nantucket and the Berkshires. 

Without some sort of resolution, or at least notice from AirBnB we're faced with either eating the tax, reporting costs, etc. or just cancelling all of our summer reservations. 

[Susan983]

I have five listings under my name, two are mine and three are my mothers that I manage in airbnb under my name so she doesn't have to deal with that.  I am able to have the banking working correctly with my mothers payments going to her.  But, I am not sure if i need to establish brand new airbnb listings for my mother in order to comply with the MA occupancy tax rules and how Airbnb collects it.  Looking for any input on this.  Thanks Susan 

[Susan151]

@Ken-and-Kathleen0.

Already under discussion here:

https://community.withairbnb.com/t5/Hosting/New-Airbnb-taxes-in-MA/m-p/944391

And, I suspect that the Boston area, which has bookings 365 nights a year, may actually provide more income than the summer rentals that have only about 10 weeks. But, that doesn't matter. The fact is,  no one knows how much tax will need to be collected yet since each municipality can add a percentage. Heck, the MA Department of Revenue doesn't even have a system for submitting taxes yet.

Come join us. We are all commiserating.

[Ken-and-Kathleen0]

Saw the other discussion. There was some bad information there. I also figured it might get more attention to have another thread.

The big difference between a Boston nightly rental and what we do on the Cape/Islands and Berkshires is when the reservations are made. Most of the seasonal reservations are going to be booked before the end of March...where the nightly stuff happens much closer to the actual stay.

 
If Airbnb doesn't do something to service the weekly vacation host quickly we'll all just move back to the way it was done before. VRBO, Local realtors, etc. Airbnb made the s/t rentals that are happening in Boston possible, but the ones on the Cape/Islands/Berkshires have been going on for decades. The State also needs to have Airbnb involved if they hope to really be able to collect these taxes. Otherwise, it'll just end up like the self-reporting of Use Taxes (you know like when you don't pay sales tax on something in New Hampshire and bring it back to Massachusetts).

[Jim40]

Feeling your pain here on Cape Cod, where this smorgasbord of new taxes will likely include in addition to traditional occupacy taxes, etc., the so-called Community Impact Fee (seriously?!)  AND a special 2.75% tax just for us lucky hosts here on the Cape.  What concerns me even more, however, is the discretion MA towns/cities have also been granted to determine 1) the number of s/t rentals they will permit, 2) where these can/cannot  be located, and 3) the number of nights/year rentals will be allowed.  Stay tuned.  So for all the talk of this new legislation "leveling the playing field," it seems pretty clear that Airbnb hosts are in the cross hairs.  What a mess!.  

[Beth238]

Hi Jim,

I rent 2 rooms in my cape home in Mashpee and was suprised when the AIRBNB tax document came out this past week. If you can rent your home for less than 14 days and not have to pay taxes, why doesn't AIRBNB combine the days where 2 rooms are rented on the same day. I thought my numbers last year would have refleced less than 14 days but because each room was listed separately, the fact that I rented both rooms on a few occassions wasn't recognized. Any thoughts?

[John47]

@Jim40 
The CIF is another 3% and only applies to certain types of listings, but as I read it, there may even be two types of CIF so it seems that a 6% total CIF could exist though I doubt any town on Cape will do so because of the 2.75% wastewater tax. Plymouth appears to have voted in a CIF, BTW.

[Denise415]

Has anyone been able to find a company to issue the $1 million personal injury policy that is required as well? If so what is the cost?

[Barbara1516]

Proper Insurance specalizes in STRs  About double my reular fees, but enabled me to cancel my basic policy which had an exclusion for str anyway(Unknown to me)

[Susan--Vince-and--Matt0]

Loyds of London insurance. Ask your insurance company about it. You might have to call yourself. It is a “Special Risk Policy”. It cost me an extra $1000 a year on my homeowners policy and covers Airbnb and short term rentals. This is the only company we could find that knows how to handle Airbnb type rentals.

[Erminia8]

I have been battling with Airbnb about adding a line that would indicate to the customer the new lodging tax in MA.  Our property on Cape Cod will carry a total of 14.45% between state, locan and environmental.  Airbnb has no solution to help us.  I have had various conversation with them and they do not have a solution.  They told me that Airbnb does not have an agreement with Massachusetts to collect the tax so they won't offer it to the host.  I'm not interested in them collecting them and paying it.  I just want to collect it and pay it myself, unfortunately not possible.  The only way you can do it is if after you approve the reservation and it's confirmed you then go back to the renter and say "oh by the way you now owe another 14.45%.  I think this is wrong, I believe the renter has the right to know what all the charges are upfront.  I have listings on HomeAway and that problem does not exist and they make it easy for the host.  I'm shocked that Airbnb is willing to make it so very difficult. 

[Ken-and-Kathleen0]

Exactly our problem. If this isn't fixed it will be our last year with AirBnB. 

[Heather398]

I was told to add a statement telling all guests that if they are to stay after July 1st they are responsible for the new tax. I was then told that I would have to call the resolution center to have the guest make the added payment. I have talked to 4 representatives so far and they all said something a little different. I am not sure why they won't take the tax out like they do for other states. Lets hope this is resolved soon. It is disappointing that as far as I know airbnb hasn't reached out to us with any clarification or help.

[Marcia283]

did they say when to call the  resolution center ?   soon after the booking ?

or after July 1st ?

I have discvered that many of the hosts on the hosts on the Cape don'teven know about this tax  yet as  they do not live on Mass !      

[Jane89]

Private owner-occupied houses where three or fewer rooms are rented, a breakfast is included in the rent and all accommodations are reserved in advance, are defined as a bed and breakfast home and are not subject to the room occupancy excise.    Department of Revenue MA!