Dana lives in her Newport property nine months out of the year and uses it as a rental for the remaining three months. Is she liable for paying an excise tax on her short-term rental

Respuesta :

No, she is not liable for paying an excise tax on her short-term rental because it only applies to short-term rentals of fewer than eight consecutive days.

A statute governing and taxing short-term house and condo rentals was approved by the governor on December 28 and became law on January 1, 2019. A rental with a duration of 31 days or less is considered short-term. Exemptions from this tax include annual and long-term leases (32 days or more). 2019 January 1 marked the start of the tax. The rental tax must be included in any lease that is signed on or after this date for a rental period that starts on July 1, 2019, or later.

All rentals beginning before July 1st, 2019 were therefore exempt from taxation. Like any tax paid at a hotel or motel, the lodging tax is the responsibility of the tenants. Vacationers are growing more accustomed to paying one since private rental lodging taxes are widespread around the nation, including in every other New England state. Renters must pay this tax regardless of the type of residence they choose because no one is exempt.

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