As you may know, Vacation rental owners on the Cape and Islands may soon be faced with charging their guests a nearly 12% lodging tax. The Massachusetts legislature has until July 31 to move Ma Senate bill S2423 forward. On Monday, we learned that Governor Charlie Baker had changed his mind and decided not to support the bill. 

We have posted two blog posts this week with more information and State Representatives contact information for those rental homeowners who want to take action. 

There are several reasons why we do not support this tax: 

• The average annual rent increase for Cape and Islands vacation homes is 2%. A nearly 12% increase in rent is unrealistic and would force homeowners to absorb the tax. Many vacationing families return to the same rental home every summer. This rental increase can be extremely disruptive to the repeat business that many homeowners rely on.
• Many Cape and Islands homeowners struggle economically due to the very seasonal nature of business here. Most are renting their homes, not out of a desire to enter the hospitality business or make a killing, but out of a clear need to pay their bills and keep their homes even through the long winter months when there is no income but continuing huge expenses.
• Proponents of the tax believe that vacationers should pay to use town services. But property owners already pay real estate taxes, and visitors often pay the towns for such amenities as beach stickers and permits.
• Rental homeowners already pay a lot more in tax per bedroom to the town than a hotel/motel. Homeowners pay based on property values, while hotel/motels pay based on net income, which is much lower.
• This tax could ultimately harm the tourism market, which in turn could bring down overall real estate values.
• A lodging tax on top of vacationers’ rental payment could easily lead some to go elsewhere for their vacation. This would send exactly the wrong message to visitors at the same time that the Chamber of Commerce is trying to attract new visitors to the Cape and Islands.
• Naturally, if the tax influences vacationers to go elsewhere and prevents homeowners from being able to afford to own and manage their rental homes, anyone considering purchasing a home on the Cape and Islands will be more reluctant to purchase a home here, driving the housing industry 

For more information, please visit our most recent blog post: http://blog.weneedavacation.com/2016/07/25/hopeful...

Thanks, 

Becky