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Wednesday, January 23, 2019

Stephen L. Carter -- The Hidden Tax on Middle-Class Vacations

Massachusetts is the latest state to make it difficult for people who rent and lease summer cottages.




(Bloomberg Opinion) -- Massachusetts has joined the list of jurisdictions that seem to think there are too many darn tourists. Or maybe it just wants to price out budget-conscious summer renters, turning the season over to the rich. That’s the message sent by the commonwealth’s new law applying the state’s occupancy tax to short-term rentals of private homes.

The transparent and unapologetic effort to protect the hotel industry against upstarts like Airbnb and VRBO has gained traction in states blue, red and purple. The idea is that the proverbial playing field must be leveled. Most states and many municipalities collect an occupancy tax based on the price of each hotel room. But low-end travelers have been fleeing the traditional hotel industry for sharing services that find them accommodations which don’t have to pay the tax.