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Three bills seek to levy room excise taxes on Airbnb rentals Other New England states collecting taxes on short-term rentals A joint committee in the Massachusetts Legislature has recommended two bills proposing a tax on rooms rented from online brokers like Airbnb Inc. The Joint Committee on Revenue recommended H. 3917 and S. 1616 to be considered by the House and Senate. Both bills would classify short-term rentals reserved on online hosting platforms similarly to hotel and motel rooms, although taxing short-term rentals at a slightly lower rate. The state's hotel occupancy excise tax is 5.7 percent, and cities and towns have the option of levying up to an additional 6 percent (6.5 percent in the city of Boston). However, short-term rentals currently aren't taxed in Massachusetts. The two bills passed by the revenue committee propose levying excise taxes on short-term rentals in Massachusetts at 5 percent and allowing local communities to add up to 6 percent local excise tax (6.5 percent in Boston). There would be no tax charged for any room rental under $15 per day. The bills also propose including other kinds of short-term rentals--like vacation homes, cottages, condominiums, and timeshares. In 2016, the Department of Revenue estimated that short-term rentals generated $294 million in Massachusetts and could have generated between $13 million and $20 million in room excise tax revenue for the state. READ MORE Please support the Taxation and Regulation of short-term rentals. To find the name and contact information for your local legislator, click here.