Proposed Occupancy Tax Targets Urban Areas, not Cape and Islands
Cape home owners and property managers have been waiting with baited breath as a proposed occupancy tax made it’s way through the state capitol for the past decade. Recent news suggests that the new occupancy tax targets only those properties that have short term rentals for 150 days or more of a calendar year. Most Cape properties rent for fewer than 150 days. The Cape’s prime season is usually 60-65 days, and with June and September added, the total day increases to about 120. Occupancy in June and September tends to average between 35-35% so this new tax will not affect the economics of most vacation rental properties. The details of the bill are forthcoming and we will pass those along when available. Good news to be sure.