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January 8, 2019

Worcester could tax Airbnb hosts 6%

Courtesy/Flickr Worcester could adopt a 6 percent local tax on short-term housing rentals on platforms like Airbnb.

A Worcester city councilor is proposing a 6-percent tax on short-term housing rentals, which would force hosts on platforms like Airbnb to pay up.

Councilor George Russell’s proposal will allow the city to collect taxes on such rentals after a state law was passed last month with a provision for a local tax of up to 6 percent.

Revenue generated would be used to reduce current property taxes, per Russell's proposed ordinance.

That tax would be in addition to a 5.7-percent state tax, according to the law. That’s the current state tax rate for hotels. 

The law also requires every host to register with the state and carry insurance. 

Russell’s proposal will be heard at the council’s Tuesday meeting. 

Airbnb on Monday said Worcester County ranked near the bottom of the platform’s busiest Massachusetts counties, with just 24,700 guests and hosts making $3.4 million.

The county is dwarfed by Suffolk County, which recorded 465,500 guests with hosts making $101.9 million.

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