SHORT TERM RENTAL UPDATE
On January 1, 2019 a new short term rental tax went into effect. For the Town of Eastham, the breakdown will be as follows:
- 5.7% to the state
- 4% to Eastham via the state. This is the same rate as hotels and B&Bs currently pay. Municipalities can raise the rate as high as 6%, but Eastham has no current plan to do so. Raising the rate beyond the 4% would require approval at Town Meeting.
- 2.75% to Eastham via a state water commission. For appropriate waste water/water quality projects.
Total – 12.45%
This tax applies to any bookings made after January 1, 2019 for rentals after July 1, 2019.
The law requires whoever collects the payment for the rental also collect the tax and remit it to the State. The MA Department of Revenue should have a FAQ and guidance document on their website in the near future. Here is their website - MA DOR. The first payments are not due until August 20th , and will be due monthly after that.
Exemptions from the Short Term Rental Tax:
- Owners who rent their homes for <14 days annually
- Long-term rentals defined as of over 31 days to the same occupant/s
- Rentals for July 1, 2019 forward that were booked before January 1, 2019
- Each rental unit will need to be listed with the state short-term rental registry
- Each city and town is permitted to create a registration requirement for short-term rentals
- Every home owner that rents out their property must carry not less than $1 million of liability coverage for each stay unless the hosting platform provides equal or greater coverage
|Other Helpful Links:|
|Short Term Rental Law -H.4841|