Gov. Baker: Apply Hotel Tax To Larger Online Rental Owners

BOSTON (AP) — Property owners who rent out rooms more than 150 days a year using online lodging services like Airbnb would begin paying the state’s hotel tax under a proposal by Gov. Charlie Baker.

The room occupancy tax rate of 5.7 percent is aimed that those who use online lodging services to essentially operate as a hotel or motel.

Airbnb said in a statement it would back the proposal. Legislative leaders including Democratic Senate President Stan Rosenberg have voiced support for taxing online lodging services.

Baker will file the plan as part of the Republican governor’s state budget plan for the 2018 fiscal year that begins July 1.

Administration officials estimate applying the hotel tax to online rentals could bring in an extra $12 million in the 2018 fiscal year.

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