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Local Excise Taxes
Rooms Tax
The local option room occupancy excise allows cities and towns to levy a tax of up to 6% of the taxable rents of hotels, motels, lodging houses and certain bed and breakfast establishments. In communities that adopt the excise, operators of these establishments must collect the excise tax and remit it to the state, along with the 5.7% state room occupancy excise.
Yarmouth's local rooms tax is 6% for a total rooms tax rate of 14.45%.
For additional information, please contact Brenda McConville of the Department of Revenue's Administrative Services Division at (617) 626-3554
Meals Tax
Massachusetts State Meals tax is 6.25% in addition to the Yarmouth Meals tax for 0.75% for a total of 7.00%.Short Term Rentals
On December 28, 2018, Governor Charlie Baker signed c. 337 of the Acts of 2018. An Act Regulating and Insuring Short-term rentals. This new Act adds short-term rentals to the rooms tax under G.L. c. 64G and includes other provisions as well. The Department of Revenue has compiled a list of frequently asked questions and has published a set of tutorial videos to help explain the changes. Please see the table below to see how the new law will affect the tax rates in Yarmouth.
|
Fee Category
|
Current
|
As of July 1, 2019
|
Notes
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||
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Hotel/Motel
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ST Rental
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Hotel/Motel
|
ST Rental
|
||
| State Rooms Tax |
5.70%
|
n/a
|
5.70%
|
5.70%
|
The State Rooms tax currently applies ONLY to hotel/motel rooms. Under the new legislation, it will automatically apply to Short-Term Rentals as of July 1, 2019. |
| Local Option Rooms Tax |
6.00%
|
n/a
|
6.00%
|
6.00%
|
The Local Option Room tax currently applies ONLY to hotel/motel rooms. Under the new legislation, it will also apply to Short-Term Rentals. Yarmouth voted to adopt a 6% rooms tax (the maximum amount allowable) at the 2010 Town meeting. This rate will carry over to Short-Term rentals with no additional votes required. |
| Water Protection Fund (WPF) |
n/a
|
n/a
|
2.75%
|
2.75%
|
These revenues, collected and administered by the State, will be overseen by the Cape Cod & Islands Water Protection Fund Management Board of which Yarmouth will be represented by a member appointed by the Board of Selectmen. |
| Community Impact Fee (CIF) | n/a | n/a | n/a | TBD | The CIF, capped at 3%, would need to be voted by Annual Town Meeting and would apply only to ST Rentals. These revenues would be collected and administered locally. The Town has not yet decided to move forward with adopting the CIF. |
| Total | 11.70% | 0.00% | 14.45% | 14.45% | |