New Airbnb taxes in MA

[Jane89]

What are Massachussets hosts doing about new taxes on hosts?

[Ann-Marie22]

I have a summer cottage on the Cape and my insurance agency (Oceanside Insurance) got me short-term rental insurance that has the $1 million dollar personal liability coverage through Lloyd’s of London. 

[Megan506]

Can I ask what your rate is? I’m not sure it’s worth even hosting at this point. Looks like there will be more vacant homes on cape soon

[John47]

@Megan506 
Just stumbled upon your post - to whom were you asking about rate and what rate? need to tag users here so we see a post as new posts in long threads are almost invisible otherwise.

If you mean liability rate, I'm paying $645 year to cover my six cottages.

[Anne226]

Susan, I replied on this topic on another thread last year. I rent a room on Cape Cod and found a Homesharing Endorsement with Bunker Hill Insurance (MA & CT). Went through Hollis Insurance Agency out of Plymouth in March of last year.

[Denise415]

Hi Ann thanks for the information : )

[Alicia242]

me to so im not what the insurance problem is that @Susan0 is referring to?

[Alicia242]

@Susan0 I rent just a room

[Carol777]

AirBnB collects taxes and sends them in for us here in Alabama and each town and county has their own tax amount.  It doesn’t seem to be a problem here.  All of you should get together and request they do the same in MA.   In fact, you should get your local and state government officials to request it.  That way the state is more likely to get the money.

[Alicia242]

@Carol777  We are all already doing all of that !!!  This all just passed 1/2019 so its in the works to have the taxes collected by Airbnb they will add the tax feature here in MA too soon. They have until July but the State rep aide I have personally corresponded with said we hope it will happen soon. However, where we hosts are concerned is until the tax collection feature is added what do we do that not inconvenient for our guest or us.... The law states if anything is booked after 1/2019 for arrival after 7/2019 its subject to the tax... and many of us have bookings already made for post July 2019.... Im wishful thinking that Airbnb can go back and add the tax to existing bookings  

[Alicia242]

@Susan0 ... Im in Salem MA and we have to pay Salem 6% and MA 5.7% this all starts 7-1-19 and correct the booking agency is suppose to collect it. We were told by a state rep aide that the tax collection add on button/key will soon be added so that AIRBNB will be collecting the tax for us hosts ( Im sure this is state wide but, we Salem hosts and im sure other MA hosts are stumped is )what about the booking we have that were made by guests post 1-1-19 that are for post 7-1-19 they are now subject to the tax... why cant airbnb just go back and add the tax for us and collect it for those existing tax subject bookings! No... they want to inconvenience us hosts and either have us collect it via a resolution center transaction which is a major PITA for our guests and us , or collect it upon their arrival to our home. Sure welcome to my home and Salem now give me my $ !!!!  Such nonsense! Get your act together Airbnb and quickly!!! Word is Airbnb is making it hard for MA because they are suing Boston so now we all suffer retaliation so it seems SMH!

[Carol777]

Sounds like everything is going to get straightened out with the taxes eventually.  The state should have given this longer to implement.  Now it does seem to be somewhat of a mess for bookings that have already been accepted.  It seems there isn’t much of a work around for those bookings unless ABnB can start collecting taxes soon.  At that point would it be possible to cancel reservations without penalty and then rebook with the tax added?  I’ve been involved with paying taxes and the paperwork involved and it’s really a PITA for sure.  Hope it gets resolved soon!

[Kathy488]

Does anyone know how to include the tax on your pricing? It's not included under the listing's local laws tab, but that's where aribnb says it would be if they were collecting it on our behalf. Any advice?

[Susan151]

At the risk of stating the obvious, the law is less than a week old. AirBNB hasn't had time to negotiate with the Commonwealth to collect and remit taxes. If they don't before the law goes into effect, I fear that like many other AirBNB hosts, it will be our responsibility to collect the taxes from the guests when they arrive.

This law is poorly written, in my opinion, and the deadlines loom since our Govenor ignored the legislation for so long.

[John47]

And considering that even the DOR hasn't gotten the rules/regs in place yet, and more imprtantly, it doesn't affect STR's until July 1 so unless you're booking those dates or after now, it's not an issue. Real estate firms are having similar problems. 
The law itself is already  in effect but the tax on STR's isn't yet. What IS in effect is that a STR host needs to be registered with DOR at this time.
I'm hoping that ABB will update the site for these taxes soon because the law requires that they be disclosed separately. 

[Anne226]

@John47, I'm also on the Cape and received my first 2019 Instant booking today for August. My rate doesn't include the tax. Falmouth's tax is 12.45% of which 2.75% is for the Clean Water Fund. I understand that the local rate is subject to change. 

Does it make sense to inform guests that a 12.45% rooms tax will be collected from them after July 1 by adding a line to my House Rules, and note the tax amount is subject to change? Does the tax apply to someone who books after Jan. 1 and visits before July 1? 

I read that if Airbnb doesn't collect the tax, hosts can do so by changing the reservation afterward or sending a special offer with the additional tax included. Not ideal but better than trying to collect it upon check-in.  Any suggestions appreciated.