Lawmakers OK slew of taxes on Airbnb, short-term rental units

The taxman cometh for Airbnb.

Beacon Hill lawmakers approved a compromise measure that applies a slate of state and local taxes on everything from investorowned units to people’s couches they rent out through sites like Airbnb, HomeAway and others.

The bill applies the statewide 5.7 percent lodging tax on short-term rentals, raising about $25 million for Massachusetts coffers.

Cities and towns can add another 6 percent local tax on the rental units — or 6.5 percent for Boston — and another 3 percent if the owner runs two or more units in the same municipality.

The bill also carves out additional taxes: Rentals on Cape Cod and the islands are subject to a 2.75 percent tax slated for wastewater issues, and units rented in Boston are subject to a 2.75 percent tax earmarked to the Boston Convention & Exhibition Center.

Local taxes are also expected to raise $25 million for towns and cities. Thirtyfive percent of all local taxes raised are required to be spent on affordable housing and infrastructure projects.

The House passed the compromise bill 119-30, and the Senate passed it 30-8.

Gov. Charlie Baker, in his budget, proposed extending the lodging tax to units that are rented 150 days a year. The compromise bill on his desk applies the tax to all rentals. It’s unclear if he will sign the measure or send it back to lawmakers with an amendment.

The bill also establishes a statewide registry for shortterm rentals and requires units be covered by a $1 million liability insurance policy.

In a statement, Airbnb said it supported the “home sharing policy and taxation” provisions but panned the creation of a public registry as having a negative impact on “families who home share” and the state’s reputation as a business leader.