Massachusetts Finally Enacts Tax of Short-Term Rentals

"Gov. Charlie Baker signed a bill on Friday that will tax and regulate short-term room rentals like those rented through Airbnb," reports Shira Schoenberg.

The legislation finally reached the finish line after moving in fits and starts throughout the year.

"The new law will apply the 5.7 percent hotel room tax to short term rentals, with an exemption for those who rent out their rooms for 14 days or less. Cities and towns can choose to add an additional 6 percent local excise tax (6.5 percent in Boston) and a 3 percent community impact fee, with an additional 2.75 percent fee levied in Cape Cod," according to Schoenberg.