On December 27, Governor Baker signed a new law that imposes an additional rooms tax on property rentals. In recent days, Town Hall has been flooded with calls from Brewster residents interested in learning more about the new law and how it affects the seasonal rental of their home or cottages.
Our legislators have asked the Massachusetts Department of Revenue (DOR) - the state agency overseeing its implementation - on how this new tax will affect Brewster property owners. Here is what we know. The new law starts taxation on rentals beginning July 1, 2019 or after - for which rental agreements/contracts have been signed on January 1, 2019 or later. It also creates a new state registration requirement with the Massachusetts DOR. DOR has a new web page that will will be updated regularly. There is a "14 day exemption” in the law that applies to those who rent their home for 14 days total or less in a year.
A portion 2.75% of the proposed local taxes will be placed in the Cape Cod and Islands Water Protection Fund (CCIWPF) and be used to underwrite the cost of clean water projects on the Cape and Islands.
To go to the new DOR web page please click here : https://www.mass.gov/info-details/short-term-rentals-frequently-asked-questions#overview-
To read the text of the new law click here: https://malegislature.gov/Laws/SessionLaws/Acts/2018/Chapter337
To read a summary from the Cape and Islands Association of Realtors, please click here : https://www.cciaor.com/shorttermrentals/
One last note, the Department of Revenue has designated Jennifer DeSimone, as the DOR constituent services manager on this new law. If you have questions you can feel free to email her at email@example.com). She is fully aware of the strong interest in this new law on Cape Cod.