9 Replies Latest reply: Jul 2, 2019 11:47 AM by thaxterlane RSS

    Short term tax in Massachusetts?

    bluebaypt New Member

      Why isn't Homeaway paying the short term rental tax for homeowners in Massachusetts? It pays the tax in other states. The new legislation says that the entity collecting the tax must remit it and file the returns.

      Thank you.

        • Re: Short term tax in Massachusetts?
          feibus Senior Contributor

          Homeaway only has tax remittance agreements with 9 states.  MA is not one of them.  So they forward the money to you, now you are the entity collecting and remitting the taxes and filing the returns.  Same as the owners in 41 other states and most other countries.

          • Re: Short term tax in Massachusetts?
            homeaway_community_manager HomeAway Employee

            Hi bluebaypt,

             

             

            Great question!  HomeAway collects and remits taxes in jurisdictions where we have agreements to do so, or where we are required by law.  feibus is correct that we only meet those criteria in a few places at the moment.  We are actively reviewing the new law passed in Massachusetts and will let owners with Massachusetts properties know if HomeAway needs to begin collecting and remitting taxes in the state.  In the meantime, our Massachusetts owners are responsible for collecting and remitting any applicable taxes. 

             

            Thank you.

             

            Erinn

            HomeAway Community Manager

              • Re: Short term tax in Massachusetts?
                maperella New Member

                Hi Erin

                 

                Thank you for the information. Will Homeaway continue to remit annual rental income to the Massachusetts Department of Revenue?If I go ahead and add the 14.45% tax as a fee to the customer, will a record of the taxes collected be sent to MA Department of Revenue as a separate line item?

                 

                Thank you in advance...

                • Re: Short term tax in Massachusetts?
                  boonb New Member

                  Hi Erinn,

                   

                  I have several questions regarding how the new MA short-term tax will be handled on HA. I am a fairly new owner/operator and new to the community forum. I just added the required 14.45% tax to my HA page. Here are my questions ~ thank you:

                   

                  1) Will this tax just apply to NEW bookings OR will it be included in the 2nd payments due on existing reservations?

                  2) Do we tax on full about of rental booking or exclude the HA traveler service fee?

                  3) If a guest cancels and has paid the tax, is that refundable?

                   

                  Thanks so much for your help as i navigate this new process.

                   

                   

                  Maryann

                    • Re: Short term tax in Massachusetts?
                      margaret CommunityAmbassador

                      Erinn is no longer employed by HA, there are several new moderators. To the best of my knowledge:


                      1) If your tax rate has increased it will not be charge to existing reservation that booked under the previous terms. You can eat the difference or ask the guest to pay the addition tax. I have paid it myself in this situation rather than ask the guest.
                      2) You do not collect and remit tax on the service fee. That is not funds you receive. Tax on the service fee would be the responsibility of HA/VRBO.

                      3)Yes the tax is refundable if  the guest cancels and you are refunding the payment.

                      • Re: Short term tax in Massachusetts?
                        thaxterlane Premier Contributor

                        Here is some information on the new lodging tax in MA which may be helpful:

                         

                        https://www.mass.gov/info-details/room-occupancy-frequently-asked-questions

                         

                        May I ask where your property is located that it carries a tax of 14.45%?   (Added fees such as community impact or water protection?)

                         

                        My property is in Edgartown, MA and carries a 9.7% tax.