Short Term Rental Legislation Recommendations

1Berkshire, the regional economic development organization and the regional tourism council for Berkshire County, represents over 1200 businesses in the region. At the direction of our Board of Directors, a Task Force of various types of lodging members was formed to review the idea of regulating and taxing short-term rental units.

First and foremost, we commend the Legislature for addressing these issues since many of our hospitality members are concerned about the impact the proliferation of short-term rentals is having on their businesses. We are also apprehensive of the effect this trend will continue to have on lodging occupancy and the resulting tax revenue our local communities count on for various programs.

The following represents recommendations created by the 1Berkshire Short-Term Rental Task Force that were approved by the Executive Committee of the 1Berkshire Alliance Board of Directors. It specifically addresses House Bill #3761, filed by Rep. Aaron Michlewitz.

1Berkshire supports updating the existing tax laws to include short-term rental units and supports the registration and regulation of those rental units.

Specifically, we:

1. Agree that all hosts offering residential units for short-term rentals must register with the Department of Revenue.
2. Encourage that the 3-tier system proposed be streamlined to avoid confusion and that all hosts be subject to the standard room occupancy tax rates as follows:
   1. 5.7 percent State Room Occupancy excise tax; and
   2. Up to an additional 6 percent local tax (consistent with previously approved local option)
3. Furthermore, that all hosts who rent out residential units for more than 60 days per year and/or rent out multiple units for short-term rentals must undergo inspections established by their municipality and be subject to commercial codes that govern health and safety.

For more information, please contact Jonathan Butler, 1Berkshire President & CEO (jbutler@1berkshire.com) or Lauri Klefos, 1Berkshire Executive VP (lklefos@1berkshire.com). Both can be reached at (413) 499-1600.