The 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!