Airbnb, and other similar short term use for fees services, have become very popular in Boston in the past year both for homeowners looking to rent out their homes and visitors of the City looking for a place to stay for a night or even longer. While these services appear to benefit all parties involved, the Commonwealth has yet to see any real benefit. As such, Massachusetts lawmakers are looking for regulation and oversight and have begun negotiations to apply a tax to those that make money on their property through these short-term use services. Governor Baker has proposed imposing the 5.7% hotel tax on property owners who utilize these services for five months or more each year. Even Airbnb is in agreement that a tax should be imposed to close the gap between private rentals and hotels. Such a tax is imposed on hosts in many large cities that have Airbnb and the cities that impose such taxes have seen positive outcomes. Although the legislature could not agree on a budget measure allowing for such taxes, negotiations are continuing and everyone involved is sure that the lawmakers will be able to decide on this in the near future. This is clearly a hot topic on the hill right now that affects many in the real estate world, so stay tuned for future updates!
We want to hear our thoughts - should Airbnb and other similar services be regulated and taxed?
For more information, check out this Boston Globe Article
-Attorney Arielle Mullaney