As you all know, hotels, resorts, inn, motels etc collect room (town and state) tax which is added on to the room rate. (Note that private home rentals, private condo rentals and B+B's with fewer than 4 rooms do not collect a MA room tax so their advertised rates reflect the amount you should be paying. You do not pay room tax when staying at a small B+B or for a private home rental.) At the moment, I believe towns are allowed a local option of 4 % while the state mandates 5.7%. So, if you are staying in a large resort, hotel, motel or inn, you are currently paying the stated rate plus 9.7% room tax.
Get ready for a change. Note: this change will not affect private home rentals, private condo rentals, or B+B's with fewer than 4 rooms.
The recently signed FY2010 MA budget includes the following provision to:
Increase the local option room occupancy rate from 4% (4.5% for Boston) up to 6% (6.5% Boston), effective August 1, 2009. Note: the current statewide rate of 5.7% is unchanged.
With towns feeling the financial pinch from the recession, will they activate their local option to increase the tax during this summer season? Anybody have information about this that might shed some light on the issue?