Effective July 1, 2019 a new law applies a 5.7% tax to short–term housing rentals — the same lodging tax hotels already have. There also is a Town of Barnstable excise tax of 6% and the Cape Cod & Islands Water Protection Fund excise tax of 2.75% for a total of 14.45% tax that needs to be applied. View the law, local registration application and more information HERE
Owners of short-term rentals, called “operators” under the Massachusetts short-term rental law, need to register their property. The operator will receive a certificate number they will need to provide to every intermediary who is collecting rent on their behalf, so the intermediary can remit the taxes.
Operators do have a grace period during the transition. Operators have until November 1, 2019 however if an operator has not received a certificate number and an intermediary has to file taxes, the intermediary can use the Operator’s Social Security Number or their Federal Tax ID number up until November 1st. As of November 1, all returns must include the certificate number.
Learn and watch how to Register your Property HERE