There are two different versions of the bill to regulate Short Term Rentals in the Commonwealth, and a Conference Committee has been organized to make one final proposal. The Conference Committee consists of Reps. Aaron Michlewitz from Boston, Sarah Peake from Provincetown and Jay Barrows of Mansfield in the House, and Senators Mike Rodrigues from Fall River, Karen Spilka from Ashland and Ryan Fattman from Sutton.

The House bill (H. 4327) is comprehensive and includes both regulation and taxation. MLA and AHLA are enthusiastic supporters of this bill. Included in the bill:

• tiered taxation structure based upon the number of days and type of lodging offered, with

• disincentives for investor units;

• direct payment of taxes to the Commonwealth by each rental entity;

• requirements for a state registry;

• enhanced public health and safety measures;

• expanded municipal oversight and regulation powers;

•  language prohibiting discrimination in renting, and

• enhanced insurance requirements for each rental unit.

The Senate response (S. 2400) contains many earlier themes with a significant focus on the potential revenue possible from STR units. This bill also expands taxation to include various online resellers such as Hotels.com and the conventional realtor industry, but does NOT include any regulations for health and safety.  This bill also includes:

•  creation of a Voluntary Collection Agreement (VCA) for STR companies, instead of direct

• assessment of taxes due;

• complete deference to municipalities regarding quality of life and safety measures;

• no statewide registry; and

• straight taxation of STR units as for hotel units – no tiered taxation structure.

It is expected that the two bills will be considered and combined into a final version by a legislative Conference Committee before the de-facto end of the legislative session on July 31. With much at stake in this new industry and in our communities, this issue will likely set the tone for future disruptive technologies in Massachusetts.