3.203 -Exemption for Hotel/Motel Rooms

Item	Description	FY2008	FY2009	FY2010
3.203	Exemption for Hotel/Motel Rooms Rental charges for real property are exempt from sales tax. However, rentals of rooms in hotels, motels or lodging houses are subject to a state excise at a rate of 5.7% of the rental price, and, at a municipality's option, to a local excise of up to 4% of the rental price. A Convention Center financing fee of 2.75% is also included in certain areas. Comment: Revenues collected under the budgeted state room excise were $111.1 million in Fiscal Year 2007 and $119.1 million in Fiscal Year 2008. Revenues collected under the budgeted state room excise were $111.1 million in Fiscal Year 2007 and $119.1 million in Fiscal Year 2008. Origin: General exclusion of real property transactions Estimate: $123.5	122	122.7	123.5

Key:

ORIGIN
M.G.L.	Massachusetts General Laws
ESTIMATES	All estimates are in $ millions.