Regulating and insuring short-term rentals

What it means

Creates a state tax and rules for short-term rentals (stays of less than 28 days in homes, rooms, condos and similar units). Sets a state excise paid by guests of 4 per cent for hosts renting 2 or fewer units, 5.7 per cent for hosts with 3 to 5 units, and 8 per cent for hosts with 6 or more, with no tax on rent under $15 a day; cities and towns may add a local tax of up to 5, 6 or 10 per cent, and those that do must require safety inspections and send half of the local tax from 6-plus-unit hosts to infrastructure or low- and moderate-income housing programs. Hosts must register each unit in a state registry, notify their insurers and post safety information; hosts with 6 or more units must have a property manager and at least $1,000,000 in liability insurance, and platforms that handle payments must carry at least $1,000,000 in liability insurance. Any city or town may limit short-term rentals, and home and renters insurers may exclude short-term rental claims.

Source: official text and history of H.4314 on malegislature.gov. This describes the bill text posted there; amendments may have changed the version that was voted on.