We’ve been getting calls and emails from some homeowners who aren’t sure how to handle their 2018 bookings in light of the potential lodging tax. If and when it’s passed, is it going to affect previously signed contracts? Or do they need to inform potential or pending guests that they could be impacted? I have now heard from two reliable sources that the tax will not be retroactive.
Jeremy Spittle, Legislative Director for Majority Whip and State Senator Michael J. Rodrigues, made it clear that the tax would not apply to any rental contracts executed before the tax goes into effect, even if the tenancy takes place after the date of enactment.
State Rep. Alice Peisch also confirmed that any leases that you sign prior to the enactment of the tax will not be affected in any way, even if the tenancy takes place after the tax goes into effect. In fact, she said that it would be illegal to have a retroactive tax.
This news further underscores the advantage of signing leases early. We still have no word on when the tax might go into effect, but all indications are that it is not likely to happen until mid-summer 2018 at the earliest.
As always, we will keep you posted.