Homeowners offering short-term rentals will pay a 5.7% tax to state

Regulations intended to level playing field with all the B&Bs, hotels, motels and inns

BOSTON — Governor Charlie Baker has signed a bill that will regulate short-term rentals, clearing up any hesitation about conflicts that local lawmakers might have regarding local regulations.

“Our administration has long supported leveling the playing field for short-term rental operators who use their properties as de facto hotels, and I appreciate the Legislature’s work to reach a compromise on this bill that adopts our proposal to avoid placing undue burdens on occasional renters,” Baker said after the Dec. 28 signing ceremony.

Massachusetts is the first state to place regulations on this sector of the new internet economy.

The regulations aim to level the playing field with other transient lodging providers such as hotels, motels, inns, and bed and breakfasts, which are subject to state taxes and regulations.