Financial Matters From the WNAV Office Lodging Tax Vacation Rental News

A Quick Update on the Proposed Vacation Rental Lodging Tax Issue

Written by Joan Talmadge co-owner, Joan Talmadge, recently looked into the current status of proposed Massachusetts legislation regarding the extension of the lodging tax to private home rentals.

4.9/5 - (15 votes)

low-chance-lodging-chanceA recent article in the Worcester Telegram prompted me to look into the current status of any proposed legislation regarding the extension of the lodging tax to private home rentals.  For the past ten years or so, local state legislators (primarily from the Cape) have proposed extending this tax to include vacation rental homes.

Currently hotels, motels, and inns in MA pay an 11.7% tax:  5.7% goes to the state and 6% to the individual towns.  If this tax were to be imposed on vacation rental homes, rental homeowners would be faced with the decision of absorbing the tax themselves or passing it on to their tenants.

Governor Patrick’s 2015 budget did include a measure to extend the lodging tax to private homes. When I communicated with Rep. Alice Peisch of Wellesley last week, however, she indicated that the House Ways and Means budget, released on April 9, did not include any changes to the lodging tax.  Rep. Peisch feels that there is little chance that this topic will come up again during this budget season.

So, for now, we rental homeowners do not need to worry about how we would go about paying this additional tax.

About the author

Joan Talmadge

Joan Talmadge - My husband Jeff and I created in 1997, shortly after buying our Cape home. My background includes teaching fifth grade for 8 years and writing and editing educational publications for 15. I get great joy from helping fellow homeowners successfully rent their homes. Jeff and I are proud to have two of our three grown children working for, truly a family-run business. For me, the Cape and Islands are magical all times of the year -- whether it's walking on Nauset Beach, playing golf, or enjoying family and friends. Email Joan


  • Ditto. I’m in New Jersey. Thanks for the info, weneeda, You always go above and beyond.

  • Thanks for the update on the vacation rental lodging tax issue. Since I manage my rental from NV, it is hard for me to get updates on this.