Should a return be filed even if no tax is due as it states with Mass.gov Room Occupancy FAQs? We have a septic and our own well. Becky. https://www.mass.gov/info-details/room-occupancy-excise-tax, Jennifer DeSimone, Constituent Services Manager on this new law Only the 15 towns in Barnstable County are subject to the Wastewater Tax. You can find more information about how to report and remit amounts collected in response to local rate changes in the, Amounts paid by an occupant that were previously reportedby the operator as taxable gross receipts for sales or use tax purposes. How should I present the tax on my listing? a property that qualifies for the exemptio, Provide an intermediary with your registration information, If you use an intermediary to rent your property, you must provide them with your registration certificate information. Ten months?
BOB on Nantucket. I believe the wastewater funds are actually needed to counteract the ravages of all of us who DONt use town water/septic, allowing our waste, nitrogen, etc. In such cases, it is the responsibility of the company to register as an intermediary and file returns on behalf of its agents for all the properties that any of its agents list for rent. Yes, of course, Becky. Hello , We are now all considered businesses and as such need to purchase a 
desimonej@dor.state.ma.us See below. The Certificate of Registration must be posted in the property and a copy of the Certificate (or the Certificate number) must be given to any intermediary used by the operator. I get great joy from helping fellow homeowners successfully rent their homes. Homeowners would be required to cover the cost of the inspection. All operators must register with DOR and obtain a Certificate of Registration for each property they offer for rent. Hi, Richard, my apologies for not responding sooner. And that is their final answer. (I asked them twice just to be sure.). An intermediary who collects the rentis also responsible for collecting and remitting the relatedtaxes and fees. Now the DOR is saying that we do not have to go into our account at all if we did not collect tax for a given month. For more information, visitNew Due Date for Sales and Use Tax Returns. See video tutorials for how to file and pay and how to upload a spreadsheet. The Vineyard and Nantucket are not part of the Cape Cod and Islands Water Protection Fund, and until and unless they opt into the Trust by majority vote of town meeting, they will not collect the 2.75%. DOR maintains a current listing of all local rates and fees, called the. in the scale of 1, Strongly Disagree, to 5, Strongly Agree. An operator does not have to be a resident of Massachusetts or a Massachusetts-based business for the room occupancy rental rules to apply. You will be asked to provide one of the following: A tax refund amount from one of your pastthreePersonalIncome Tax returns. You will find your certificate number after registering by logging into your MassTaxConnect account, selecting, from the Room Occupancy Consolidated tax type. Ms Weedon Generally, a real estate agent works for a real estate brokerage or company and any rent associated with a listing by a real estate agent is collected by the company. I only rent my However, if the property is rented for 14 days or less in a calendar year, you are not required to collect any tax. A short-term rental unit may be considered professionally managed for this purpose whether or not an intermediary is involved. An operator is required to keep records relating to charges and receipts for all transfers of occupancy, as well as copies of returns filed. Joan I continue to be impressed and grateful by your site and its dedication to helping homeowners and renters. The info regarding the lodging tax payment due August 20th notes, in pertinent part: Even if you have no taxes due for July, log into your account and indicate 0 taxes due. https://www.mass.gov/info-details/room-occupancy-excise-tax, https://malegislature.gov/Laws/SessionLaws/Acts/2018/Chapter337, Short-Term Lodging Tax Percentage by Town. to explain the changes formunicipal governments. An intermediary can arrange a property rental and collect rent for any operator whether they operate a bed and breakfast establishment, hotel, lodging house, short-term rental or motel. You can find more information about how to report and remit amounts collected in response to local rate changes in the regulation.
We have updated our FAQs with this item: Be careful to check into this insurance matter. The term rent includes all optional charges, including but not limited to insurance, linen fees, cleaning fees, and booking fees. Hi, Kimberley, I have found your listing on our site and will happily forward you a copy of our sample lease. The room occupancy excise tax applies to room rentals of 90 days or less in hotels, motels, bed and breakfast establishments, and lodging houses. The deadline for claiming the exemption for each calendar year is January 15 of the year claiming the exemption.
thanks Gordon, Hi, Gordon, if I understand you correctly, yes, you would need to register, even if you wont be renting any longer in the future.
In addition to the state excise, Massachusetts cities andtowns arepermitted to chargealocal room occupancy excisetax up to 6% (6.5% for Boston). Mass.gov is a registered service mark of the Commonwealth of Massachusetts. Although operators have until January 15 to claim or renew a 14-day rental exemption for the calendar year, if the operator does not claim the exemption by that date for a property, it will be the responsibility of the intermediary or operators agent to collect sales tax on that rental as of January 1. Twelve? Hi Elizabeth We have been told by the DOR that there would be penalties for late filing and late payment of the tax, but they have not been specific. Anyone else able to share what you are doing for insurance liability coverage? An official website of the Commonwealth of Massachusetts. You are exempt from the tax if you rent your home for 14 days or fewer per calendar year. Thank you, Generally, the room occupancy excise is collected and paid to DOR by a person or business called an operator. Professionally-Managed Units:one of two or more short-term rental units that are located in the same city or town, with the same operator. about local rules, including whether a city or town is a member of the Cape Cod and Islands. Do not use your ROC account number. c. 62C, 16B, Register as an operator or intermediary with MassTaxConnect, An Act Regulating and Insuring Short-Term Rentals, Massachusetts Room Occupancy Excise (Regulation), TIR 19-3: Changes to the Room Occupancy Excise in An Act Regulating and Insuring Short-Term Rentals, Tourism Destination Marketing District (TDMD) Fund FAQs, FY2020 Short Term Rental Economic Activity Report, FY2021 Short Term Rental Economic Activity Report. We would be lost without your organization. Am I required to carry insurance for my home? Also do you have any recommendations as to what the tax provision should state in the lease? If your carrier does not provide the required $1M liability coverage, you might need to take out an umbrella policyto supplement your current policy, or switch to a different provider. Room occupancy returns are due monthly on or before the 30thdayfollowing the month represented bythe return. Are safety inspections required? Payment of the tax must be online, and the only way to submit it is to log in to the account that is created when you register. There are two options. Short term refers to any rental period of 31 days or less, so annual or long-term rentals are excluded from the tax. How do I register? If so, do you have to provide this list AFTER July 1? And keep in mind that renters will have to pay this tax no matter which home they choose. A bed and breakfast home is defined as a private owner-occupied house where not more than 3 rooms are rented, a breakfast is included in the rent and all accommodations are reserved in advance. Collecting the 2.75% Cape Cod & Island Water Protection Fund Excise on hotel rooms in Barnstable County booked prior to January 1, 2019 for occupancy on July 1, 2019 or after, Planning for changes in local excise rates, Generally, the tax rates in effect at the time of occupancy apply to all rentals subject to room occupancy excise.
Could you send a sample lease to me? All taxes and fees that are effective on July 1must be collected for occupancies on or after July 1, including the Cape and Island Water Protection Fund Excise. You can find more information on specific records to be kept by reviewing the Record Retention Regulation. We will use this information to improve the site. Thanks so much, Instead, intermediaries will log in under the existing username and password and add the Room Occupancy Consolidated account type. Administered by the Massachusetts Department of Revenue, this page provides information on room occupancy excise tax and fees charged for stays at a short-term rental or traditional lodging establishment. Hi, Chris, We do not provide $1 M insurance policy, and the primary reason is that we advertise and market the homes on our site but are not in any way involved in the actual financial and business end. Am I required to carry insurance for my home? Hi my lease is split 7 days in August and 25 days in November for a total of 32 days to the same guest. How can I determine what amount my town is assessing for the local tax? It is a significant savings if the site is covering the insurance for that particular rental (liability). As an intermediary, the return must include each operators registration certificate numberorFederal ID [or Social Security Number], along with the name and address of the operator and the amount of taxes and fees collected. The property is not within a single-family, 2-family or 3-family dwelling that includes the operators primary residence. How does that affect my tax collection responsibilities? Lease contracts should include provisions that all state and local taxes and fees are due as of the date of occupancy, so occupants are aware that additional amounts may be due if rate or fee changes occur after a contract is signed. So that wont help you avoid the tax. You are still required, however, to register your home and provide insurance. What if a town increases its local excise rate or imposes a new fee? A lock icon ( All operators and intermediaries must register with DOR on MassTaxConnect. An intermediary is anyone besides an operator who helps to arrange a property rental for an operator and collects rent. Tax Department(617) 887-6367 Joan. in your general info that is open to the public. A return is only required to be filed for a month that tax is due.
We now provide this language on all listings: State and local taxes of X% will apply. The exact percentage is determined by the town in which your rental home is located. As for your question about a meals tax, I have no idea, haha! If I didnt have any taxable rentals during the previous month, do I still need to file with MassTaxConnect? Elizabeth. What if I rent my home by the week in the summer but long term (formore than a monthto one party)in the winter? What specifically do I make a payment for on the 30. How do you interpret that? You register via the websiteMassTaxConnect. You continue to be an incredible resource with the wealth of information you provide. Hi, Kathie, we are still waiting to hear how the registration process will work. Include the operators registration certificate number on your return. By separate vote, cities and towns may choose to include 2-family and 3-family dwellings that include the operators primary residence. The states room occupancy excise tax rate is 5.7%. So, you can choose to either tax it and return the tax along with the deposit or not tax it and take your chances that you wont need to withhold any of it. Beginning April 2021, a provision in the FY21 budget requires thattaxpayers with over $150,000 in cumulative tax liability in the prior year will be required to make advance payments. How can I determine what amount my town is assessing for the local tax? And yes, you should simply add a line item in your lease for the Lodging Tax under the payments section. must be completed no later than January 15 of the calendar year claiming the exemption. I have read several references to the act of registering your rental with the state.
Jeff and I are proud to have two of our three grown children working for WeNeedaVacation.com, truly a family-run business. Should renters send a separate check for the taxes? Our property ID # is 20909. The exemption renewal process must be completed no later than January 15 of the calendar year claiming the exemption. It could be collected along with the initial deposit or when the balance of the rent is paid. 
It is the responsibility of the intermediary to notify the operator of its responsibility to comply with all applicable municipal, state and federal laws.
Please provide information on how to register a short-term rental property with the state. No, if you had no taxable rentals during the previous month, you do NOT need to log in and file a 0 payment. This is what the DOR says about an increase in fees or a new fee: If an occupancy occurs after a rate increases or a new fee is imposed, whoever collects the rent must collect any amounts due from occupants that were not paid prior to occupancy. condo for 2 weeks, (14 days). Rents collected and reported by an intermediary are not considered exempt rents for the operator. short-term rentals of property for 31 days or less.
If you cant provide a tax return or refund amount, call the Trustee Tax Contact Center at (617) 887-6367 (choose #3 for Business tax, then #2 for Trustee Taxwhen prompted). An intermediary or operators agent must register with DOR usingMassTaxConnect. See below. Some towns have voted to increase the local tax or add a fee. Should renters send a separate check for the taxes? Changes to local option rates or other locality-based fees, Changes to local option rates and fees require a vote by the legislative body of the city or town. A lodging tax for private rentals is common in many parts of the country, including every other New England state, so vacationers are accustomed to paying one. Hi, Rick, If you rent for 14 DAYS OR LESS, you are exempt from charging the tax! Thanks for the clear information! An Excel template is available for uploading through MassTaxConnect with all the appropriate cells in the appropriate order. Hi Joan, Theres no need to register separately for each rental property.
Are you at We Need a Vacation going to be required to provide a list of all your active accounts to the Comm. In the cities of Boston, Worcester, Cambridge, Springfield, West Springfield, and Chicopee, an additional 2.75% tax is chargedfor convention center funding. Hi, Barbara, unfortunately, if your home is in one of the 15 towns on the Cape (or their villages), you will be subject to the Wastewater tax regardless of whether you are on town water/sewer. In the example you gave, you would not remit the tax for the guests stay until October 20. what are the penalties if you dont report the sttax? We encourage all of our homeowners to check their policies and discuss this issue with their agents. The Division of Local Services has compiledFrequently Asked Questions (FAQs)to explain the changes formunicipal governments. Id like to give them the background about this new tax. The Impact of the Lodging Tax on the 2019 Cape and Islands Rental Season, Tips to retain repeat guests and attract new ones. Whether by check or credit card, the taxes could be combined.
A bed and breakfast establishment is a private owner-occupied house where 4 or more rooms are rented, a breakfast is included in the rent and all accommodations are reserved in advance. Do Marthas Vineyard and Nantucket require collection of the Wastewater Tax? Do Marthas Vineyard and Nantucket require collection of the Wastewater Tax? The new law requires homeowners to maintain $1 million dollars in liability insurance to cover a rental home. We have the tax listed in the lease based on the rental cost. Check with your insurance agent to be sure that you have adequate insurance coverage. dayfollowing the month represented bythe return. When you file your monthly tax return, you will list each property and the rent collected for that property. You will find more information on these exemptions in the regulation. Once you have set up your account password: Registering and collecting tax for a property that is rented for only a few days a year as a short-term rental, No matter how many days your property is available for rent each year, you must register with DOR using. I dont believe so, the tax is against any non-refundable fee charges. It would seem that Mass FAQs states that a return is due ONLY for any month when a tax is due.
8:30 a.m.4:00 p.m., Monday through Friday, Text of the law: The Insurance issue will be big for all owners. If you do withhold any of it, you will be responsible for paying the tax on the amount you withhold. Jean 28258. Yes, operators of short-term rentals must register withMassTaxConnect (even if you are exempt from the tax because you rent for 14 days or fewer). The law expands the states hotel and motel tax to include the short-term rental of homes and condos.
If no tax is due, no return is required to be filed. Do I need a different lease if it is not classified as a STR? However the law seems to be pretty clear that An intermediary that enters into a written agreement with the operator to collect rent or facilitate the collection or payment of rent on behalf of the operator of an accommodation subject to the excise under this chapter shall assess, collect, report and remit the excise . Check with your town for details. The FAQ above seems to indicate that the owner of the property will have to remit the taxes to the state. You will find your certificate number after registering by logging into your MassTaxConnect account, selectingView Operators Properties from the Room Occupancy Consolidated tax type and choosing the View Certificate hyperlink. The MA Department of Revenue offers a clear and helpful FAQs page with information about registering as an operator. (Note: that is what you are, an Operator.). How much is the tax? Returns and payments are submitted to DOR through MassTaxConnect. The only month for which you need to file are those in which you had one or more taxable rentals. It is not necessary for renters to send a separate check for the taxes. The owner who registers as the operator will file returns and remit the tax to the Department if the owners are collecting rent directly. Short-Term Lodging Tax Percentage by Town, Joan Talmadge - My husband Jeff and I created WeNeedaVacation.com in 1997, shortly after buying our Cape home. If there is no separate legal entity that owns the property (a partnership, trust, LLC, etc.) The other sites, and realtors as well, collect the funds as well as service fees from vacationers and are directly involved in the rental transactions. When and how do I remit the tax? Operators should be aware that cities and towns may have separate registration or licensing requirements. The coverage is required to defend and indemnify the owner and any tenants in the home for bodily injury and property damage. Towns may implement a health and safety inspection requirement and determine the frequency of the inspection. What a pain the law is making us change/add to insurance policies FYI, my insurance broker, who also has a rental on the Cape, said there are many options & one of the easiest (if my out of state primary residence insurer will allow) is an umbrella policy on the primary residence to make up the difference up to $1 mil liability on the rental property. Theres no need to register separately for each rental property. Operators may want to include provisions in lease contracts stating that all state and local taxes and fees are as of the date of occupancy so occupants will be prepared for possible increases due to rate or fee changes after a contract is signed. Hi, John, the tax INCLUDES any non-refundable fees such as cleaning, linens, or pet ones. Do not include sensitive information, such as Social Security or bank account numbers.
But you should NOT incorporate the tax within the rates posted on your Calendar. Hi Elizabeth Thank you. You would remit the tax for the taxable rentals that you had the previous month. .
How does that affect my tax collection responsibilities? Operators should only report rents they collected directly. Very good point, David! Specifically excluded from rent are: A short-term rental is an occupied property that is not a hotel, motel, lodging house or bed and breakfast establishment, where at least one room or unit is rented out by an operator through the use of advance reservations. You can find information about local rules, including whether a city or town is a member of the Cape Cod and Islands. Beginning July 1, 2019, the room occupancy excise also applies to short-term rentals of property for 31 days or less. You skipped the table of contents section. A question for you I see on the MA Gov website the following as it relates to what is taxable: The total amount of rent that is subject to tax includes all amounts paid by an occupant to an operator or intermediary, even if not required for occupancy. If that exception applies to you, you must let us know at the time of registration that you will not be renting out your property for more than 14 days. Payment can be made by electronic transfer from your checking or savings account. The state will retain its 5.7% and remit the balance to your town. The 14-day-exception is determined on a per-property basis every year. No tax would be due for your long-term tenant, nor would you need to file a return for the months of the long-term tenancy. Operators do not report or pay taxes and fees on rent amounts collected by an intermediary. Thank you for sharing the details. Various sources, such as the city or town website and local media, may have information about upcoming votes. A bed and breakfast home is not subject to tax. Warm regards, Rebecca Hansen, Thank you, Rebecca! A normal Homeowner policy of one Million dollars will not be sufficient. Visit the Division of Local Services Municipal Databank for current local option and community impact fee rates as well as information about which localities are part of the Cape Cod and Islands Water Protection Fund. What items are taxable? Are we to tax the security deposit up front (along with the rent and non-refundable fees)? Massachusetts has a state room occupancy excise tax rate of 5.7%. If we are not on town sewer, do we pay a wastewater tax? Ill send it right along. You can find more information on specific records to be kept by reviewing the, Responsibilities other than filing returns and paying taxes for intermediaries, The Division of Local Services has compiled. Registering and filing returns as a real estate agent. However, Mass.gov Room Occupancy frequently asked questions (https://www.mass.gov/info-details/room-occupancy-frequently-asked-questions) indicates the following I only rent my property at certain times of the year. The total amount of tax required to be collected depends on where the property is located. If the operator does not provide this identifying information, you may not allow the operator to list their rental property with you. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. If I didnt have any taxable rentals during the previous month, do I still need to file with MassTaxConnect? 
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