As a reminder, significant changes that took effect on Monday, July 1 as a result of the new Short-Term Rental law passed in December 2018 and clarified in late March by the Legislature. As you may recall, MLA advocated for a number of years to regulate and tax the new Short-Term Rental industry and this law is the result of that process. The law is intended to "level the playing field" between conventional lodging establishments and rentals through companies such as Airbnb - and as such, there are changes that affect both types of lodging. Click here to view the official DOR page on this issue. SPECIFICALLY these are the changes with which you must comply: Every operator must register with DOR using MassTaxConnect. There have been changes to the definition of "rent" that require taxation of charges such as insurance, linen fees, cleaning fees and booking fees (but not security deposits). There have been changes to the definition of "occupancy" that require that you charge taxes on the right to use or possession of the furnishings or the services and accommodations for each room, regardless of whether or not these are used by a guest in that room. Under the new law, you are permitted to allow an intermediary to collect and remit the new taxes via written agreement. Otherwise it remains your responsibility to do so. If you are on Cape Cod, you are also required to charge the new 2.75% tax for the Cape Cod and Islands Water Protection Fund. This new charge currently only applies to lodging in Barnstable County and not those in Nantucket and Dukes County, which have not yet opted in to the Fund. There is no change to the existing Convention Center Financing charge that is currently added to guest bills in Boston, Worcester, Cambridge, Springfield, West Springfield, and Chicopee. In the City of Boston, a new .5% local option fee was added to the existing room occupancy tax, and the new Room Occupancy Tax should be 6.5%. Reportedly the City of Boston notified operators in mid-June of this change but it may have gone to your corporate office and not been made available to you with this short notice. In all other communities, you can verify changes to the local lodging tax by visiting the Municipal Databank. Please note that these figures do not include any Convention Center or Cape Cod Water Trust Fund additions for your specific establishment. For more information on any of these issues, please feel free to visit one of the following links. Again, I urge you to be in contact with your own legal and tax professionals for specific implementation at your establishment. TIR 19-3: Changes to the Room Occupancy Excise in An Act Regulating and Insuring Short-Term Rentals Municipal Databank DOR has also made a number of video tutorials available on implementation of this new law - these can be accessed on the main information page on this issue.