A sign of things to come

Good luck boosting already-astronomical vacation rental costs by 10% during a depression.

By the way, according to several realtors I spoke to a few years ago, it's an open secret that nobody who rents out houses and apartments in Ptown declares the income on their tax returns. The state is looking for money, too, as well as the towns, so tax evaders seem like the logical place to start.

Cape Cod rentals last summer were begging for renters because of the economy. This will surely push more vacationers away and loss of rental income for condos and home owners. A shame that Cape Cod voters can't see this coming.....it all trickles down to losses for everyone on the Cape. Oh well. They complained last year of losses, this year the losses will be more.

From this article, it appears that only some to the towns will be implementing this plan. All the other towns should cheer their good fortune since vacationers who are price conscious will likely bypass Ptwn and Brewster for neighboring towns, (or for Rhode Island), with the same seafood, sandy beaches, and ocean and bay view.

"Yes, the tax assessment on your home will likely come down at some point. But so will that of your neighbors. And to make up for the loss of billions in real estate values, town and city officials will find themselves between a rock and a hard place."

I cannot remember the tax rate in my town. I look at the total tax bill. This is what will really matter as the towns adjust to a change in assessments.

This is also very scary for renters. A lot of towns have big revenue shortfalls and a lot of renters. Some southern states tax rents. What will stop this from becoming a general tax on rents?

How do Provincetown and Brewster intend to enforce the "summer employee" exemption? What if a renter is self-employed? What if they're writing a book? What if they're only working 8 or 12 hours a week? This will just lead to "under-the-table" rentals.

Very good points Scott. Massachusetts and its towns have been spending like drunken sailors, and the bill will become due.

I think that extending the rental tax is fair, and I'd be hit by it myself. But I think its a really bad idea - the minor revenue it raises will be more than outweighed by the damage to the economy, especially on the cape.

What Massachusetts really needs to do is cut state and municipal spending. We spend far more than most other states, and get very little more. We are right up there with Chicago when it comes to trading pork for votes in massively inefficeint ways. The only good thing about this mess is that people will be forced to look at what this govt is doing in their name, with their money.

The only good thing about this mess is that people will be forced to look at what this govt is doing in their name, with their money.

Let's see whether that ever happens. The Sec of State is angling for subpoena powers to pursue ethics charges, but that's not enough. We need an elected Government Accountability Officer, with full powers of subpoena and prosecution at local and state levels.

I've had both cops and firefighters in my family out of state, and they were astonished to learn the lavish pay they could luxuriate in if they moved here. I'm all for healthcare for the poor and elderly, unemployment benefits, and the whole lot. But good Lord, force-fed geese have nothing on some of our overfattened public servants.

Fair point Marcus - I'm only hoping people will look, it won't happen.

The state and municipal employees payments really bother me. BUT. A fair number of my gfs relatives who we would otherwise be on the hook for are instead given absurd pensions and salaries by the state. So I think I come out ahead of the game, absurd as it is.

Of course, as I am currently renting in Boston, I pay no property tax here. (Though I do have an interest in land in this state still, I have to confess. But I've always thought of it as very long term, and other issues apply.)

I really prefer coastal Maine now over the Cape. I go to York every summer. It's actually quicker to get there and it still is old school in many ways. I know of a place to stay that is very affordable and has million dollar views of nothing but the sea.

Let's be reasonable, folks. With all of the corruption that goes on in your little state, do you really think that if you do not pay the tax that they are going to do anything about it? Read the paper, learn the dance: you claim, through your lawyer, that you did not know about the tax, you plead not guilty, you get a court date two years from the violation, and when you go you plea down to a token amount well below what you would have actually paid. Just be cautious your lawyer does not rip you off in the process.

The other alternative is to hire Cleon Turner as your lawyer. He is the state rep who is sponsoring the bill and is a practicing attorney. As a Mass politician, he is as unethical as they come, and will likely take your case for the money he can earn from it, and then argue against what he has sponsored. He has done it before, and will do it again. It is, after all, Massachusetts!

I'm not at all a fan of most of the cape in truth. But coastal maine, though very pretty, suffers from abominably cold water...

The islands are my real preference

this "tax" will contribute further to price declines for Cape properties, one more cost to renting out the property...

Marcus, if you rent through a realtor the realtor is required to report the income
to the IRS. Realtors won't risk their license and source of income by not doing this.
Private rentals---not so much.

Marcus, if you rent through a realtor the realtor is required to report the income
to the IRS. Realtors won't risk their license and source of income by not doing this.

No, of course not. They have a Code of Ethics TM and would never violate that.