Short Term Rental Update

On January 1, 2019 a new short term rental tax went into effect.  For the Town of Falmouth, the breakdown will be as follows: 

  • 5.7% to the state.
  • 4% to Falmouth via the state.  This increases to 5% effective January 1, 2020.  This is the same rate that hotels and B&Bs currently pay.
  • 2.75% to Cape Cod Water Quality Fund via a state water commission, for appropriate wastewater/water quality projects.  

Total - 12.45% July 1, 2019

           13.45% January 1, 2020

This tax applies to any bookings made after January 1, 2019 for rentals after July 1, 2019.

The law requires that whoever collects the payment for the rental, also collect the tax and remit it to the state.  

The following are links to the Bill information and DOR Website FAQs.

More detailed information to follow from the state in the fall.