What are MA hosts doing about new tax law?

[Jane89]

What are Massachussets hosts doing about new taxes on hosts?

[Rachael31]

Hi.  I just contact the mayor of my town,Northampton, and volunteered to serve on a task force (if he forms one) to figure out how to implement the changes in my town.  I'm looking for a handful of other Northampton airbnb hosts who might be willing to work with him.  

Rachael, **** (if they don't strip that out....)

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[Sion2]

Here in San Francisco, Airbnb settled with the city to pay the 14% hotel tax and they collect it from the guest and pay it to the city. We also have more serious new regualtions that you cannot rent out places that are not your own home that you live in. Thousands of listings were remvoed from people setting up hotels in aprt buildings. Honolulu is looking to copy us. Guest don't like it as they mostly want super cheap...but with an average hotel cost of 400 a night some "get it" is still a great deal. 

[John47]

I've been in touch with a Jennifer at MA DOR to try and get some answers about how it will be implemented. Esp for us who operate only seasonally and the reporting requirements. And I'm concerned about those who may rent for a 31+ day period so no tax but then have stay altered to shorter (<31) which thus causes taxes to be due...how will ABB handle that one?
Also been i touch with Patrick at Sen Cyr's office and called into talk show on Cape Cod to voice objections to the 14.45% tax that my guests will pay.

[Allison206]

Hi John - I just called Airbnb to ask where on my listing I can add the fee for our new MA taxes. They informed me that it is not possible - and that I will have to collect the taxes directly from the guests when they arrive. This is ridiculous! On VRBO, home owners are able to list the local taxes and these are added to the total charge for the rental. 

I'm not at all happy about this new tax, as many low-income year-rounders depend on renting out their houses (or rooms in their houses) during the summer in order to make ends meet.  

[Susan151]

@Allison206. I wouldn't trust that CS to know much of anything. The law clearly states that the booking agency must collect the tax and submit to the Commonwealth. Since AirBNB is the booking agency, they will have to set up a collection system for this state. It will be complicated since the law also allows each municipality to add their own tax. If Somervile plans to add additional taxes, it has not yet been voted on and/or announced.

The amount of lead time to implement this massive law is too short. And shall we all talk about the insurance requirement? Has there been any clarification from the State as to what will fulfull the insurance requirements?

[Allison206]

@Susan151 It's really nuts. But in the end, are the home owners going to get a big tax bill which they're responsible for - even though the protocol isn't yet spelled out? Yes, and then there's the new insurance requirements! I called my broker and they said they are trying to figure out what to do. Non one seems to have any answers... Unless I'm issing something?

[Susan151]

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@Allison206 wrote:

@Susan151 It's really nuts. But in the end, are the home owners going to get a big tax bill which they're responsible for - even though the protocol isn't yet spelled out? Yes, and then there's the new insurance requirements! I called my broker and they said they are trying to figure out what to do. Non one seems to have any answers... Unless I'm issing something?

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I don't think you are missing a darn thing! This bill's contents is supposed to be in practice with only 6 months time. Heck, it took this state over three years to finally figure out the protocol to implement the Marajuana law.

[John47]

@Susan151Note that local towns/city can add TWO different taxes: The 0%-6% local option and the 3% Community Impact Fee (I think that was name of it).
I agree that when Airbnb does the booking and collects rent, they must be the one to collect and remit the tax.
Actually, the insurance part of it is rather straighforward, I feel. Though it won't affect me as I  already had that for some years because I'm semi-commercial.

@Allison206I am also quite displeased with this esp with the 0-60mph type startup where it went from 0% to 12.45% for my place because I'm on Cape so get an extra 2.75% wastewater!
And I still don't quite see how we are supposed to charge tax on any fees when the CC 3% fee is charged based on the amount total so if we don't pad it some, we won't have enough to get our rent portion from leftover amt. Hard to explain this easily.

[Susan151]

@John47 . Yes, the insurance is a problem for people who rent out a room in their house; not for the commercial places that are self-contained like what you offer.

I will keep searching since no one who rents a room only has chimed in.

[John47]

@Susan151 
I have asked a FB group that i belong to about this to see if some other MA host has input. The only prior references I could quikly find were to CBIZ and also that Airbnb has some insurance as part of their system so I'm wondering if the insurance issue is more for those who rent via real estate agents and/or CraigsList, etc that don't have any coverage?

[Denise415]

Yes but the insurance that Air BNB provides to hosts does not cover personal injury as this new law is requiring $1,000,000.00 liability insurance hosts will have to find a policy to cover this . As a side note Mass Fair Plan only covers up to 500K liability. I am still searching for coverage of this amount.

[Anne226]

Hi @Denise415. I replied to this concern on several posts last year as I was also on MA Fair Plan and learned they I would be dropped if I had a STR. I rent a room on Cape Cod and finally found a Homesharing Endorsement with Bunker Hill Insurance (MA & CT). Went through Hollis Insurance Agency out of Plymouth in March of last year. I have 1 mil coverage. 

[John47]

@Denise415@Anne226FYI: Contacted CBIZ just to see what options they may have compared to my current provider BUT once they found out that i had perfectly legal and valid but older 1950's fuse boxes instead of breakers, they wouldn't touch me!

[Denise415]

Good to know thankfully we did renovations in the 1990’s that included upping to 200 amp service from our old fuse box. I will check around and see what I can find and post what I find if anything.