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GA Blog: Short Term Rentals

Showing blogs: 13 of 3

10.28.19 Room Occupancy Tax Frequently Asked Questions

On the Massachusetts State website, a frequently asked questions concerning the new Room Occupancy Tax has been posted.

The FAQ includes several questions relevant to REALTORS® dealing with short term rentals.  Such questions include:

Who is an intermediary or operator’s agent?

I am a real estate agent. Do I need to register and file returns as an intermediary?

How much tax am I required to collect? 

If you are working with short term rental units please take a moment to look through the questions, speak to your broker about the process, and if further assitance is needed NSAR is here to help.

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10.15.19 Rockport Considers Community Impact Fee

Following the 3% Community Impact Fee implemented in Gloucester, the Rockport selectmen are considering implementing the fee themselves.  The 5 member selectmen committee has expressed mixed opinions as they begin to research if a Community Impact Fee is right for Rockport.

Community Impact Fees for short term rentals stem from An Act Regulating and Insuring Short-Term Rentals.  Gloucester led the state in implementing their own Community Impact Fee.  The fee itself can be set anywhere from 0-3%.  The Massachusetts Association of REALTORS opposed the original legislation.

The decision in Rockport is far from final.  The Gloucester Times writes that “the conversation ended with Town Administrator Mitch Vieira saying he will research how the community impact fee has impacted other Massachusetts communities.”

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9.24.19 Gloucester Adopts Maximum Short-Term Rental Community Impact Fee

With a unanimous vote of the City Council, Gloucester has adopted a Community Impact Fee for Short-Term Rentals.  This adds 3% onto the already 6% Gloucester collects from local lodging excise taxes.  The city says it will use the funds raised from the Community Impact Fee exclusively towards affordable housing initiatives and projects.

Jim Destino, the City’s Chief Administrative Officer, was quoted as saying: “We value the revenue and feel that it levels the playing field with the already established lodging establishments in the City.’”

This new fee stems from the framework built by An Act Regulating and Insuring Short-Term Rentals, which was opposed by the Massachusetts Association of REALTORS®, and is one of the first around the state.  In accordance with the new law a city of town can “impose upon an operator a community impact fee of not more than 3 per cent of the total amount of rent for each transfer of occupancy of a professionally managed unit that is located within that city of town."

REALTORS® should be aware of and educated on the taxes that need to be collected and remitted when working with short-term rental properties.

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