Lodging Tax Vacation Rental News

Great news — no lodging tax on vacation rentals for this year!

Written by Joan Talmadge
4.1/5 - (7 votes)

Tax FreeThe 2015-2016 legislative session ended at midnight last night with several key bills ready to present to Governor Baker for his signature.  Notably absent from the $700M economic development bill was the proposal to apply the state hotel and motel tax to lodging such as AirBnB and vacation rentals!

Thank you to all of you homeowners who reached out to your state legislators to tell your story about the potential consequences of this tax extension. The tax would have added up to 12% to your rental rates and negatively impacted the Cape and Islands tourist industry and even vacation home sales.

Undoubtedly, the bill will come up again next January, and we all need to be prepared. It will be important for us to differentiate our vacation rental homes on the Cape and Islands from AirBnB units in Boston and other urban areas, which are in direct competition with hotels.  We will continue to keep you posted, but congratulations to all!

About the author

Joan Talmadge

Joan Talmadge - My husband Jeff and I created WeNeedaVacation.com 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 WeNeedaVacation.com, 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


  • Great news! If there is no tax on lodging, then property owner can save more money. Thank you for sharing this information.

  • If anyone has suggestions on how to
    Prepate for another legislative round in 2017, please let us all know. We are not Airbnb. We are Cape Cod folks, and any establishment who will help explain our story might want to hear it…